Delhi Court: Builders Diverted Funds Leading To Housing Projects Delay

Delhi State Consumer Commission has instructed Parsvanath Developers to refund an amount Rs.23.24 lakh to a woman for delay in housing project possession. According to the Delhi State Consumer Commission, the reason for housing projects getting delayed is the builders’ unethical way of using homebuyer’s money for different ventures.

Pertaining to the guilt of deficient service accepted by the Parsvnath Developers, it has been ordered by the Delhi State Consumer Disputes Redressal Commission to refund the amount.

The main cause for the delayed housing projects highlighted by the commission is the improper utilization of money which they received from the buyers. The buyers make payments with view of investing in residential project and get established. Contrary to what buyers thought, the builders spent, or rather say, invested the amount on various other ventures but the project.

In order to expand their business, the builders show unethical practices by investing a large part of the buyers’ money. The dishonesty, thus, results in the housing projects getting delayed.

The commission has instructed Parsvnath Developers to refund a handsome amount to the Delhi-Resident woman whose flat was not completed even after 10 years of the agreement.

After the agreement between the developers and the woman in 2007, the possession of the flat was to be handed over in the next three years. But, Parsvnath Developers failed to do so causing constant delay of the housing project.

As per the developers, the reason for this delay in housing projects is the economic recession which had hit globally, specifically the real estate sector in India. Developers said that this had caused the delay in the housing projects.