IMPORTANT POINT
Reasoned order passed by State Commission cannot be upset by National Commission.

Mrs. Rekha Gupta, Presiding Member—Revision petition no. 4071 of 2012 is filed against the order dated 01.08.2012 of the Andhra Pradesh State Consumer Disputes Redressal Commission, Hyderabad (‘the State Commission’) in appeal no. 586 of 2010.

2. The facts of the case as per the petitioner/ complainant are that respondent/ opposite party are in building construction field and they have undertaken the project by name “Aparna Cyber Commune” and the said project has ten blocks consisting of 660 apartments and closely located to the IT hubs of Gachibowli and Manikonda. The project was to be completed within 18 months of obtaining the approval from Greater Hyderabad Municipal Corporation (in short “GHMC”) further that the approval would be obtained within one month and or six months of finalization of booking and that the land was in the designated residential zone.

3. The petitioner paid Rs.2.00 lakh as advance/ initial payment to the respondent on 05.03.2008 and booked a flat in their project ‘Aparna Cyber Commune” valued at a cost of Rs.38,68,200/- and was given a receipt for the said advance. Respondent had categorically promised on receipt of advance of Rs.2.00 lakh on 05.03.2008 that the GHMC approval would be obtained within a month and the project will be completed within 18 months and the flat would be delivered for possession to the petitioner with all the amenities and specifications as promised in the brochure.

4. Yet, even though 13 months have passed after the payment of advance of Rs.2.00 lakh to the respondent, the respondent had not obtained the GHMC’s approval thereby the respondent had committed default and willful misconduct and it appeared there was no prospect of his obtaining the approval from GHMC. Without the legal approval of GHMC there was no question of legal authorized construction by the respondent. There was almost no possibility of their completing the construction as envisaged in the contract nor any possibility of delivery within the stipulated time period.

5. The respondent has, hence, committed fault of deficiency in service as per the provisions of the Act of 1986 in not obtaining the GHMC approval for construction of the project building within the time promised and there was no prospect of construction being completed with the due approval from GHMC.

6. Therefore, the petitioner prayed before the District Forum to cancel the contract and grant/ award the following:

a. Refund of advance amount of Rs.2.00 lakh paid to the respondent on 05.03.2008 for booking the flat;

b. Pay interest @ 12% per annum from the date of payment on 05.03.2008 till the date of award and future interest at the same rate till the date of realization;

c. Award compensation of Rs.1.00 lakh as envisaged under section 14 (1) (d) of the Act;

d. Award punitive damages to the tune of Rs.5.0 lakh as envisaged in the proviso to section 14 (1) (d) of the Amendment Act, 2002;

e. Award adequate cost of Rs.10,000/- as provided for in section 14 (1) (i) of the Act.

7. In their counter filed by the respondent/ opposite party before the District Consumer Disputes Redressal Forum I, Hyderabad (‘the District Forum’) the respondent stated that the complaint was absolutely false and hence, denied. The petitioner was put to strict proof of all those allegations, except those which are specifically admitted hereunder. The petitioner had suppressed the material facts and approached the District Forum without bonafides. There was no direct relationship between the respondent and the petitioner and therefore, there was no relationship of consumer and hence, the complaint was not maintainable.

8. The respondent further stated that when the project was initially announced, M/s Synergy Welfare Association, a society registered with Registration no. 1865 of 2007, approached the respondent stating that it was formed with the objective of purchasing the land/ flats for its members. They held several rounds of discussions with the marketing team of