National Consumer Disputes Redressal Commission (NCDRC) has issued a judment on Friday where all home buyers of a housing project will automatically be the party to a case filed against the builder irrespective of whether they have filed the case or not (under Section 12 (1) (c) of the Consumer Protection Act).
The failure of the builder/ developer to deliver possession of the flat / plot sold to them and a complaint filed for the benefit of or on behalf of all such consumers and claiming same relief for all of them, would be maintainable under Section 12(1)(c) of Consumer Protection Act.
The interest of the persons on whose behalf the claim is brought must be common or they must have a common grievance which they seek to get addressed. The defect or deficiency in the goods purchased, or the services hired or availed of by them should be the same for all the consumers on whose behalf or for whose benefit the complaint is filed.
This judgement is given in the case against Jaypee in Kalypso Court case.
NCDRC has recently acted against many big names in the industry on complaint of home buyers. The commission recently asked Jaypee to pay 12% interest for for delaying its Kalypso Court project in Noida. In another order, it also asked Mumbai-based builder Lodha group to refund Rs 1.02 crore to a buyer with 18% interest
NCDRC on May 6 directed Parsvnath Developers to refund the entire amount paid by around 70 home buyers in its Parsvnath Exotica project in Ghaziabad with 12% interest for failing to complete the apartments on time.
The order would apply to all old and new such cases filed under Section 12 (1) (c) of the Act, which would surely make life tough for defaulting real estate developers.