Landmark Judgements — Cite These in Court
Lucknow Development Authority v. M.K. Gupta (1994) 1 SCC 243
Supreme Court
Housing boards are service providers. Mental agony from builder delay is compensable under consumer law.
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Ghaziabad Development Authority v. Balbir Singh (2004) 5 SCC 65
Supreme Court
The Supreme Court rejected a mechanical, uniform interest rate (the National Commission had been awarding 18% p.a. across the board) for delay in possession. Compensation — interest, mental agony, litigation costs — must instead be assessed under separate heads on the facts of each case; a rate such as 12% p.a. is only ever a fact-specific outcome, not a fixed entitlement.
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Pioneer Urban Land v. Govindan Raghavan (2019) 5 SCC 725
Supreme Court
One-sided builder-buyer agreement clauses were struck down as an unfair trade practice. Inordinate delay in handing over possession is a deficiency in service, and a buyer cannot be compelled to accept a builder-dictated interest rate on the refund — entitled to a fair rate (here, the applicable RERA-linked rate).
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Imperia Structures Ltd v. Anil Patni (2020) 10 SCC 783
Supreme Court
RERA does not bar or exclude a complaint under the Consumer Protection Act. The remedy under RERA is in addition to, not in derogation of, other remedies, and a home buyer has the choice of proceeding under either the Consumer Protection Act or RERA.
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Frequently Asked Questions
Should I go to RERA or Consumer Forum? +
You can choose either, but not both simultaneously. Consumer courts can award higher compensation for mental agony (RERA generally awards only interest).
Imperia Structures Ltd v. Anil Patni (2020) confirmed the Consumer Protection Act remedy is not barred by RERA and the buyer has the choice.
What if the builder has filed for insolvency? +
File a claim before the Insolvency Resolution Professional (IRP) under IBC. Consumer courts can still hear complaints and pass orders, but execution may be complex.
What relief can be sought? +
Depending on the facts, a complaint can seek refund of the amount paid with interest, compensation for mental agony, and litigation costs. The specific amount, if any, is decided by the Commission on the evidence in each case — there is no fixed or guaranteed figure.
What if I want the flat and not a refund? +
You can claim possession + compensation for the delay period. Consumer courts order builders to hand over possession along with compensation.