Delhi State Commission Holds DLF Gayatri Developers Liable For Delay In Completion Of Housing Project; Directs Refund Of 15 Lakhs

Brief facts:

The complainant applied for allotment of a residential plot in the housing project- Garden City of DLF Gayatri Developers ('developer') situated in Andhra Pradesh. A sum of Rs. 1,20,000 was paid as booking amount and an assurance was given by the developer that the possession would be delivered within 24 months from date of booking. Till 12.04.2014, the complainant had paid a total sum of Rs. 14,66,304/-. However, when he personally visited the project site, there was no development work and some serious quality issues were also pointed out by the complainant.

An email was sent by the complainant addressing the issues but the developer failed to rectify them. As per the complainant, other home buyers have already been granted compensation but the developer denied the same to the complainant. A legal notice was also issued by the complainant but the issue remained unresolved. Hence, a complaint was filed before the Delhi State Commission praying for appropriate compensation.

Submissions of the complainant:

The complainant submitted that all payments were made in a timely manner. However he stopped making payment for installments when he got to know that no work was being carried out on the site. It was submitted that almost seven years have passed without any proper construction or activity being performed. He further submitted that the developer threatened the complainant to cancel the allotment and forfeit the advance amount and also raised demand for club membership fees.

Submissions of the developer:

It was the argument of the developer that since the property was located in Hyderabad, the State Commission at Delhi does not have the power to decide the complaint. The developer submitted that it cannot be made liable since the delay occurred due to Telangana movement in Andhra Pradesh and further time consumed in obtaining statutory approvals.It was further submitted that possession has already been offered to the complainant vide letter dated 02.05.2019. It was argued that the complainant has defaulted in making payments of installments and has also refused to sign the allotment letter.

Observations of the Commission:

On the issue of power of the Delhi State Commission to try the complaint, the bench observed that though the project is situated in Hyderabad, the registered office of the developer is located in Sansad Marg, Delhi. Hence, the Delhi State Commission is empowered to decide the complaint. Reliance was placed on the decision of NCDRC in Rohit Srivastava vs Paramount Villas 2017.

On the issue of deficiency in service, the bench referred to the decision of the Supreme Court in Arifur Rahman vs DLF Southern Homes (2020) wherein it was held that failure of the developer to deliver the flat within the contractual period amounts to deficiency in service. The bench relied on clause 11 of the allotment letter as per which the possession was to be delivered within 24 months from date of booking. It was further observed that the complainant had already paid approximately 75% of the amount within 11 months of booking till September 2013 and the possession was offered only in 2019.

Thus, the developer was held liable for delay in completion of the housing project. It was also held that it had no right to use or sit over the hard-earned money of the complainant and it was the duty of the developer to arrange for labour for development of the project.

Hence, the complaint was allowed with the following reliefs:

1. Refund of Rs. 15,19,467/- along with interest
2. Rs. 1,00,000 as costs for mental agony
3. Rs. 50,000 as litigation costs.

Case Title: Akshat Bansal vs DLF Gayatri Developers

Case Number: CC No. 897/2019

Advocate for complainant: Kapil Jain

Advocate for Opposite Party: Kalyan Kumar Thevar

Date of decision: 19.06.2025

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