The Supreme Court has sent a strong message to real estate developers, making it clear that promises made in project brochures cannot later be dismissed as mere marketing claims. Developers must ensure that the final project delivered to homebuyers matches the plans, facilities and representations used to sell the property.
The observation came during a hearing related to DLF Home Developers' The Primus housing project in Sector 82A, Gurugram. The dispute centres on a 24-metre-wide road that was shown in the original project plan and promotional material but was allegedly not maintained in the manner promised to buyers.
A bench comprising Justices Ahsanuddin Amanullah and R Mahadevan described the deviation as substantial rather than minor. The court warned that appropriate orders could be passed if the project was not brought in line with the representations made in the original brochure and approved plans.
The issue was examined as part of a preliminary inquiry conducted by the Central Bureau of Investigation into complaints related to the project.
According to the findings referred to before the Supreme Court, the proposed 24-metre-wide road did not exist across the project in the same manner shown in the original plan and brochure. The road was expected to cover around 147 metres, but approximately 52 metres of the stretch had been developed as a green patch. Another significant portion was being used for parking by residents and visitors.
As a result, nearly 100 metres of the planned road, or around two-thirds of the intended stretch, was allegedly being used for purposes other than the road promised in the project layout.
The Supreme Court questioned why the issue had not been rectified despite several opportunities being provided to the parties involved.
The bench also stressed that the dispute was not limited to the road alone. The larger question, it said, was whether the residential project ultimately delivered to homebuyers matched the representations made to them at the time they purchased their flats.
The Primus was marketed as a premium residential project, with promotional material highlighting facilities including two 24-metre-wide access roads, banquet facilities, tennis courts and swimming pools.
However, several homebuyers later alleged that important aspects of the project did not match the promises made in the brochures and marketing material.
The dispute began after five homebuyers approached the National Consumer Disputes Redressal Commission. Following its judgment in May 2023, both the buyers and the developer approached the Supreme Court.
The homebuyers raised concerns regarding access roads, water and electricity infrastructure and the circumstances under which a partial occupation certificate was granted. They also alleged that the project was effectively surrounded by agricultural land.
The developer, however, has maintained that possession was offered with the necessary water, electricity and other required compliances.
The Supreme Court's latest observations follow an earlier order in which it noted a prima facie major mismatch between statutory requirements and the situation on the ground. The court had raised concerns that representations made to prospective buyers may not have been fully translated into reality.
The matter also raised wider questions about consumer protection in India's organised real estate sector and the responsibility of developers towards homebuyers who make purchasing decisions based on brochures, plans and advertised amenities.
The Supreme Court subsequently directed the CBI to conduct a preliminary fact-finding exercise. In its latest order, the court asked the CBI director to assign two additional inspectors to assist the officer handling the inquiry.
The matter is scheduled to be heard again on October 12, when the Supreme Court is expected to consider the agency's final report.
The court has also emphasised that the CBI inquiry must remain independent and objective and should not be influenced by observations made during the proceedings.
The case reinforces an important principle for India's real estate sector: project brochures and promotional representations can carry serious responsibility, and developers may be held accountable when the homes and facilities delivered do not match what was promised to buyers.
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