NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
R.K. Agrawal, President and Dr. S.M. Kantikar, Member
Shefali Syal and Anr. – Complainants
versus
M/s. Ireo Grace Realtech Pvt. Ltd. – Opp. Party
Consumer Case No.793 of 2018
Decided on 20.12.2021
Consumer Protection Act, 1986 – Ss.12, 21, 22[Consumer Protection Act, 2019 – Ss.35,58, 59] – Real Estate – Alleged delay in handover of possession and refund of amount deposited – Complaint filed – Whether Complaint’s are entitled to refund of the deposited amount along with interest @9% p.a. – Developer is directed to refund Rs.36,21,946/- (Rupees Thirty Six Lacs Twenty One Thousand Nine Hundred and Forty Six Only), along with interest @9% S.I. p.a. within 3 months from the date of this Order failing which the Developer shall be liable for payment of default interest @12% S.I. p.a. till the payment is made. The Developer shall not deduct the Earnest Money of 20% from the Principal Amount, or any other amount as mentioned in Clause 43 of the Application Form, on account of the various defaults committed by the Developer, including the delay of over 7 months in obtaining the Fire NOC – Compliant allowed.
ORDER
The present Consumer Complaint has been filed under Section 12 read with Sections 21 and 22 of the Consumer Protection Act, 1986 (for short “the Act”) by the Complainants, against the Opposite Party, M/s. Ireo Grace Realtech Private Ltd. (hereinafter referred to as the ‘Developer’) seeking refund of the amount deposited by them with the Developer as they have failed to hand-over the possession of the Flat booked by the Complainants in the Project launched by the Developer in the name and style of “Ireo-The Corridors”, within the stipulated period.
2. According to the Complainants, the facts of the case are that in response to the Applications invited by the Developer for allotment of Flats in their upcoming Project, “Ireo-The Corridors” (hereinafter referred to as the ‘Project’) located at Golf Course Extension Road, Sector-67-A, Tehsil & District Gurgaon, Haryana, the Complainants booked a Residential Flat in the “Project” via Application dated 08.03.2013 by paying booking amount of Rs.10,00,000/- (Rupees Ten Lacs Only). Pursuant thereto, via Allotment Letter dated 07.08.2013, the Complainants were allotted Unit No. CD-A2-10-1004 in the tenth Floor of Tower A-2 of the Project having Super Area of 1868.82 sq. ft. Complainants have made the requisite payments towards the first and second installment being Rs.5,00,000/- (Rupees Five Lacs Only) and Rs.21,21,946/- (Rupees Twenty One Lacs Twenty One Thousand Nine Hundred and Forty Six Only) on 08.03.2013 and 06.05.2013 respectively. However, despite making several enquiries, the Apartment Buyer’s Agreement (hereinafter referred to as the “Agreement”) was not sent for execution. Distressed, the Complainants visited the construction site in April 2016, only to realize that even excavation work had not been commenced for which the huge amount was collected from the Complainant. Consequently, the Complainants aggrieved by such inactions on the part of the Developer, sought refund of the amounts paid by them but to no avail.
3. On 26.07.2017, the Complainants received demand letter for payment of third installment along with a copy of “Agreement” for execution and on 23.08.2017, the Complainants received reminder for the payment of the third installment. It is averred that such demands of the Developer were illegal and unlawful and that the Developer have been deceiving the common public from its inception by making false promises. Hence, the Complainants serving a Legal Notice dated 25.11.2017 upon the Developer, sought refund of the monies paid, along with interest. Contrarily, the Developer did not accede to the request of the Complainants and by Reply letter dated 14.12.2017, they informed to the Complainants that they will charge 20% interest p.a. for delayed payments of the third installment. It is the contention of the Complainants that the Developer unlawfully induced large sums of money from the general public even when the Project did not have the requisite approvals and had legal disputes with the Owners of the land. Pertinently, as per Clause 43 of the Application for Booking of Residential Apartment (hereinafter referred to as “Application Form”) the possession of the Unit was to be handed over within a period of 42 months from the date of approval of the Building Plans. Clause 43 of the Application Form reads as under:-
“Subject to Force Majeure, as defined herein and further subject to the Applicant having complied with all its obligations under the terms and conditions of this Agreement and the Applicant not having defaulted under any provision(s) of this Agreement including but not limited to the timely payment of total Sale Consideration, stamp duty and other charges and also subject to the Applicant having complied with all formalities or documentation as prescribed by the Company, the Company proposes to offer the possession of the said Apartment to the Applicant within a period of 42 (Forty Two) months from the date of approval of the Building Plans and/or f
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