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In Significant Victory for Home Buyers, SC Rejects Developer’s Appeal on Excess Sale Area -Newsclick.in

-Newsclick.in

‘In fact, this is a common practice adopted by majority of builders/developers which is basically an unfair trade practice,’ the NCDRC had said in its order.

In a significant victory for home-buyers the Supreme Court dismissed a builder’s appeal on January 12 and upheld the National Consumer Disputes Redressal Commission’s (NCDRC) ruling in favour of a home-buyer. It had held that the builder’s demand for more money over the contractual sale, on account of excess sale area, was illegal.

The matter reached the apex court following an appeal by the developer after the NCDRC had ruled on the case in August last year.

In its judgment on August 26, 2020, the NCDRC had said that “this is a common practice adopted by majority of builders/developers which is basically an unfair trade practice. This has become a meansto extract extra money from the allottees at the time when allottee cannot leave the project as his substantial amount is locked in the project and he is about to take possession (sic).”

The case in question was filed by one Pawan Gupta against Experion Developers Pvt. Ltd. The builder had referred to a clause in their contract which stated that Experion could ask for more money if the sale area of the property increased up to ten per cent. The NCDRC held the demand as illegal and the apex court also dismissed an appeal by the developer on Tuesday.

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