Advance Plot Booking Does Not Confer Right To Allotment; Buyer Entitled Only To Refund: Delhi State Consumer Commission
The Delhi State Consumer Disputes Redressal Commission, comprising Justice Sangita Dhingra Sehgal (President) and Bimla Kumari (Member), has dismissed an appeal filed by a homebuyer seeking possession of a residential plot under a pre-launch scheme and upheld the District Commission's direction to Parsvnath Developers Ltd. to refund the deposited amount with interest, holding that no error...
The Delhi State Consumer Disputes Redressal Commission, comprising Justice Sangita Dhingra Sehgal (President) and Bimla Kumari (Member), has dismissed an appeal filed by a homebuyer seeking possession of a residential plot under a pre-launch scheme and upheld the District Commission's direction to Parsvnath Developers Ltd. to refund the deposited amount with interest, holding that no error was committed in granting refund in the absence of allotment of a specific plot.
Brief Facts
The appeal was filed by Mr. Shiv Kumar Gupta, who had booked a residential plot measuring 300 square metres under a pre-launch scheme floated by Parsvnath Developers Ltd. at Parsvnath City, Sonipat, Haryana.
Initially, the plot was booked by one Rekha Gupta upon payment of ₹1,57,500. The booking was later transferred in favour of the appellant with the consent of the developer, pursuant to which an additional amount of ₹3,36,000 was paid by him. A priority number — initially 797 — was allotted, which was later improved to priority number 53.
Despite repeated representations, visits, and issuance of legal notices, the possession of the plot was never handed over. Aggrieved by the prolonged non-allotment, the complainant filed a consumer complaint seeking possession along with compensation and interest.
The District Consumer Disputes Redressal Commission (East), Delhi, while holding that Parsvnath Developers had indulged in deficiency in service and unfair trade practice, noted that no specific plot number had ever been allotted to the complainant.
Taking into account the non-execution of any builder-buyer agreement and the impossibility of granting possession in the absence of identification of a specific plot, the District Commission directed the developer to:
• refund ₹4,93,500 with interest at 12% per annum from the date of deposit; and
• pay ₹40,000 as compensation including litigation expenses.
Aggrieved by the said order, the complainant approached the State Commission contending that he had never sought refund and that possession of the plot ought to have been directed.
Contentions Of Parsvnath Developers Ltd.
The developer submitted that the booking was made only under an Advance Registration Form, which did not confer any right upon the complainant to seek allotment of a specific plot. It was contended that allotment was subject to availability and development of the project and that the complainant was contractually entitled only to refund of the deposited amount with interest. Accordingly, it was argued that no deficiency in service or unfair trade practice was made out on its part.
Observations And Decision
The Commission observed that the booking under the Advance Registration Scheme did not create any vested right in favour of the complainant to seek allotment of a specific plot. While a priority number had been assigned, no plot number was ever allotted, nor was any agreement executed.
The Commission held that in the absence of a specific allotment, the developer could not be directed to hand over possession. At the same time, the prolonged failure of the developer to either allot a plot or refund the deposited amount amounted to deficiency in service.
Accordingly, the Commission upheld the District Commission's order directing refund of ₹4,93,500 with interest at 12% per annum along with ₹40,000 towards compensation and litigation expenses, and dismissed the appeal seeking allotment of the plot.
Case Title: Mr. Shiv Kumar Gupta v. Parsvnath Developers Limited
Case Number: FA/336/2024