23/12/2025
In Emaar MGF Land Ltd vs. Govind Paul, the complainant had booked a residential apartment from the builder with an assurance of possession within a stipulated timeline. However, the builder failed to deliver possession on time, causing prolonged delay.
As per the buyer’s agreement, the builder offered only a token compensation of ₹5 per sq. ft. per month for the delay. Aggrieved by this inadequate compensation, especially in light of continued rent payments and home loan interest, the homebuyer approached the National Consumer Disputes Redressal Commission seeking fair compensation.
The builder contended that it was bound only by the compensation clause mentioned in the agreement. The NCDRC rejected this argument, holding that token compensation clauses cannot override consumer rights, and that homebuyers are entitled to just and reasonable compensation reflecting the actual financial hardship suffered due to delayed possession.