The Supreme Court has ruled that a real estate developer's offer to a home buyer to take possession of a flat without essential completion and firefighting clearance certificates is invalid. The court highlighted that the absence of these certificates constitutes a deficiency in service under the Consumer Protection Act. It directed the Agra Development Authority (ADA) to pay Rs 15 lakh in compensation to the appellant, emphasising that the developer must obtain these certificates before offering possession, as mandated by Section 4(5) of the UP Apartment Act and Section 19(10) of the RERA Act. The ADA’s failure to provide these documents rendered its offer legally incomplete and invalid.
The court also noted that while the appellant delayed payment of the additional amount demanded by ADA, the authority’s failure to fulfil its statutory obligations by not providing the necessary certificates was the primary issue. The ADA had made an offer of possession in 2014 but did not supply the required documents. Consequently, the court ordered ADA to refund the entire deposited amount with 9% interest from July 11, 2020, and pay an additional Rs 15 lakh. It also directed ADA to return the non-judicial stamp worth Rs 3,99,100 to the appellant within three months. Despite the lapses of both parties, the court refrained from imposing exemplary costs on ADA to avoid impeding its public service role.