Builder-Buyer Agreements Often Favours Builders’ Interest: NCDRC [Read Order]

Terming some builder- buyer agreements as ‘unconscionable contracts’, the National Consumer Disputes Redressal Commission (NCDRC) has observed that the terms are usually framed ‘favourable’ and ‘suitable’ to builders/ service providers.

The commission made this observation while dealing with an appeal against the state commission dismissing their complaints against the builders.

The complaint was regarding unfair trade practice and deficiency in service by the Kanpur Development Authority in keeping the huge amount for more than a year and refunding it without interest.

The commission observed: “The builder exercises his right to charge penalty or interest at 18-24% on the delayed payment of instalments. Thus, in our view, in the interest of natural justice the consumers at large deserve to receive same interest from opposite parties in cases of fault or deficiency.”

Rejecting the contention based on the preposition that auction purchaser not being a consumer, the commission observed that the complainants are consumers of the Kanpur Development Authority and it is an admitted fact that the auction process never concluded due to the faults of KDA.

Read the Order here.

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