In a significant ruling that underscores the accountability of real estate developers, the National Consumer Disputes Redressal Commission (NCDRC) has ordered Godrej Projects to refund more than ₹4 crore to aggrieved homebuyers due to unfulfilled promises regarding essential amenities and infrastructure. This decision arises from five separate cases linked to the ‘Godrej Summit’ project in Sector 104, Gurgaon, where homebuyers have faced a protracted wait for promised facilities.

Promises Made, Promises Broken

The NCDRC’s order, led by Presiding Member Ram Surat Ram Maurya and Member Bharat Kumar Pandya, highlights the serious deficiencies in service provided by Godrej Projects. The commission found that the developer failed to deliver on critical promises, including the construction of a 24-metre-wide access road and other necessary amenities, even seven years after buyers made their bookings. The panel noted that although the flats were offered for possession, the promised infrastructure was never constructed, severely impacting residents’ accessibility and convenience.

A Road to Nowhere

The ruling emphasized the misleading nature of the project’s marketing. Godrej had advertised the development as being well-connected to the Dwarka Expressway via a spacious road, a key factor that influenced buyers’ decisions. However, the NCDRC found that the actual access roads constructed were inadequate, with an alternative entry and exit point created on a narrow 10.06-metre-wide road, which has also faced issues of encroachment. As a result, residents of parcels B and C must navigate through the entrance of parcel A, which does not meet the promised specifications.

Legal Accountability and Consumer Rights

Despite the builder’s assertions that they were pursuing the necessary construction through legal avenues, including a civil writ petition in the Punjab and Haryana High Court, the NCDRC deemed these actions insufficient. The commission stated that shifting responsibility to government authorities does not absolve the builder of its obligations to provide the promised infrastructure. “It was the builder’s duty to ensure the provision of the road as promised,” the ruling asserted, reaffirming the rights of consumers to seek refunds when agreements are not honored.

The Developer’s Stance

In response to the NCDRC’s ruling, a spokesperson for Godrej Projects stated that the order pertains to the non-construction of the 24-metre road, despite previous rulings indicating that the developer is not liable for infrastructure outside the project’s boundaries. The company is considering an appeal and remains confident in its legal position regarding the matter, which is currently sub-judice.

Advocacy for Homebuyers

Advocate Aditya Parolia, who represented the homebuyers, expressed satisfaction with the commission’s decision, emphasizing that the builder had assured clients between 2012 and 2014 of direct access to the Dwarka Expressway through the promised wide road. “While the housing units may have been delivered on time, the essential amenities and approach roads promised have not materialized even after a significant delay. The law clearly supports homebuyers in claiming refunds with penal interest in such situations,” he explained.

Implications for the Real Estate Sector

This landmark decision by the NCDRC serves as a crucial reminder to real estate developers about the importance of transparency and adherence to commitments made to consumers. As the industry grapples with issues of accountability, this case reinforces the need for builders to honor their promises or face serious legal consequences. For homebuyers, this ruling is not just a victory; it is a powerful affirmation of their rights in an often complex and challenging real estate landscape.