YEIDA Ordered to Refund Flat Buyer’s Money After 12-Year Housing Project Delay

• DCDRC orders YEIDA to refund Rs 2.8 lakh with 6% annual interest.
• Buyer waited over 12 years for possession under the 2014 housing scheme.
• Authority has been given 30 days to comply with the consumer panel’s order.

Greater Noida: The District Consumer Disputes Redressal Commission (DCDRC) has directed the Yamuna Expressway Industrial Development Authority (YEIDA) to refund Rs 2.8 lakh, along with 6% annual interest, to a homebuyer after a housing project launched in 2014 failed to materialise. The order was passed on Monday, bringing relief to a buyer who had been waiting for possession for over a decade.

The case relates to YEIDA’s Yamunotri Housing Scheme, under which Omveer Singh had applied for a 2BHK flat in Sector 22A, Greater Noida, in November 2014. Although he was allotted an 880 sq ft apartment through a draw of lots after paying the registration amount, the project never progressed and the promised possession was never delivered. The ruling highlights the responsibility of development authorities to honour refund commitments when projects are indefinitely delayed.

After the housing project remained stalled, YEIDA offered applicants two choices either shift their booking to another project or seek a refund with interest. Omveer Singh chose the refund option and submitted his request in October 2017. However, despite repeated follow-ups and a legal notice sent later that year, the refund was never processed, forcing him to approach the consumer commission in 2018.

During the proceedings, YEIDA argued that Singh had not deposited the remaining allotment amount within the prescribed deadline and therefore violated the scheme’s conditions. According to the Authority, this gave it the right to cancel the allotment and forfeit the registration amount.

The consumer commission, however, rejected YEIDA’s argument. It observed that the scheme brochure was only an informational document and did not constitute a legally binding agreement between the parties. The panel also noted that YEIDA had never officially cancelled the allotment or taken any formal action against the buyer for the alleged violation.

The commission further pointed out that YEIDA itself had issued a letter in October 2017 offering applicants the option to adjust or refund the registration amount. This communication clearly indicated that the Authority recognised its obligation to return the money. Its failure to process the refund despite the buyer’s request amounted to a deficiency in service, the commission ruled.

The DCDRC has directed YEIDA to refund the full Rs 2.8 lakh registration amount, along with 6% annual interest, calculated from the date the complaint was filed. Additionally, the Authority has been asked to pay Rs 5,000 towards litigation expenses.

The decision could provide hope to several other buyers whose investments remain stuck in delayed or abandoned housing schemes. It also reinforces the rights of consumers to seek compensation when public authorities fail to fulfil their commitments.

YEIDA has been given 30 days to comply with the commission’s order and release the refund along with the applicable interest and litigation costs. The Authority may choose to comply with the order or challenge it before a higher forum if it decides to appeal. Meanwhile, a separate case related to the allotment of the buyer’s wife is still pending before the consumer commission.

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