Haryana RERA Holds NBCC Liable To Compensate Shop Owner For Property Loss, Interiors & Mental Agony

The Haryana Real Estate Regulatory Authority (Authority) has held that a buyer compelled to vacate a commercial unit due to structural defects is entitled to compensation for loss of property appreciation, interior work expenses, mental agony, and litigation costs, in addition to refund of the purchase price, with interest.

A Bench of Adjudicating Officer Rajender Kumar directed National Buildings Construction Corporation Ltd. (NBCC) to pay Rs. 16.50 Lakhs towards loss of appreciation, Rs. 2 Lakhs for interior work, Rs. 1 Lakh for mental agony, and Rs. 50,000 towards litigation costs. The Authority also directed that these amounts shall carry 10.85% interest per annum from the date of the order until actual payment.

The Authority noted:

“That it is unfortunate that the Project has become unhabitable, although, it is pointed out that the Project building still stands tall, albeit with structural cracks. Therefore, it has rendered the performance of the respondent's promises to its allottees impossible.”

The complainant, Nand Lal, had booked a commercial shop measuring 166 sq. ft. in NBCC's project “NBCC Green View”, Sector-37D, Gurugram, in February 2018 for a total consideration of approximately Rs. 1.94 Crores. NBCC handed over possession of the shop in October 2018, and the complainant commenced operations of a departmental store in November 2019.

Subsequently, an inspection conducted by IIT Delhi revealed serious structural cracks in the buildings. Due to safety concerns, residents and occupants were instructed to vacate the premises. NBCC issued vacation notices on 13 October 2021 and 18 November 2021, compelling the complainant to vacate the shop.

Earlier, in separate proceedings dated 26 July 2024, the Authority had already directed NBCC to refund the amount paid by the complainant along with 11% interest and Rs. 1 Lakh as penalty. Thereafter, the complainant approached the Adjudicating Officer seeking additional compensation for losses including cost of interior work, loss of goods, business loss, escalation in property value, mental harassment, and litigation expenses.

The Authority noted that the complainant had carried out interior work, including electrical fittings. While NBCC's valuer estimated the cost at Rs. 1.10 Lakhs, the complainant provided evidence for a higher amount. Considering the circumstances and material on record, the Authority awarded Rs. 2 Lakhs towards interior work.

Further, the Authority observed that the complainant had lost the benefit of market appreciation after being forced to vacate the unit due to structural defects, and awarded Rs. 16.50 Lakhs as compensation for this loss. Since the unit was found not habitable or usable, the complainant suffered mental agony and harassment, for which Rs. 1 Lakh was awarded.

Regarding litigation costs, although no court fee is required for filing a complaint before the Authority, the complainant had engaged an advocate and incurred expenses.

Accordingly, the Authority awarded Rs. 50,000 towards litigation costs.

Accordingly, the Authority disposed of the complaint, holding NBCC liable to pay the total additional compensation in addition to the refund and interest already directed.