NCDRC orders Sunworld Vandita Group to refund Yamuna City homebuyers after 14-year wait

NCDRC’s order states that the builder must refund the entire deposited amount to all homebuyers along with 12 per cent interest within two months

The National Consumer Disputes Redressal Commission (NCDRC) has directed the Sunworld Vandita Group to refund money to buyers of its Yamuna City’s Sector 22D housing project, located along the Yamuna Expressway, who have been waiting 14 years for their flats, the NCDRC stated.

The National Consumer Disputes Redressal Commission (NCDRC) has directed the Sunworld Vandita Group to refund money to buyers of its Yamuna City’s Sector 22D housing project. (Photo for representational purposes only) (HT File photo)

According to the NCDRC’s August 31 order, the builder must refund the entire deposited amount to all buyers along with 12 per cent interest within two months. If the payment is delayed, the applicable interest will rise to 15 per cent a year. The order also requires the builder to pay ₹25,000 in litigation costs to each buyer, the order states.

Rejecting the builder’s argument blaming farmers’ petitions and litigation for the delay, the bench of AVM J. Rajendra (retd.) and Justice Saroj Yadav, stated: “After advertising the project and taking money from buyers, it was the builder’s responsibility to ensure necessary approvals and compliances.”

The builder submitted before the commission that construction work was affected due to farmers’ protest and lawsuits regarding the land and due to circumstances beyond the builder’s control.

Sanjiv Gupta, promoter of the Sunworld City project, told HT: “We have already paid the principal amount to buyers. Complying with NCDRC’s order, we are now in the process to pay the interest component.”

The back story

The case dates back to 2018 when homebuyers approached NCDRC after the builder failed to deliver the flats, originally slated for delivery around 2017.

In 2011, the Yamuna Expressway Industrial Development Authority (Yeida) allotted a land parcel to Sunworld Vandita Group for the Sector-22D project, officials said. In 2012, the builder invited bookings and around 1,400 buyers invested their money, officials added.

By 2013, buyers had deposited 20 to 80 per cent of the flat amount and builder-buyer agreements were signed. However, when some buyers inspected the site in 2017 and saw no construction activity, they approached NCDRC in 2018.

Initially, 91 buyers filed a petition against the builder, but later 27 buyers withdrew their names, said officials.

The case remained under consideration on the petition of a total of 64 buyers. The buyers had demanded full refund with 24 per cent interest, ₹2 lakh compensation for mental harassment and ₹5 lakh as litigation cost, said officials.