NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Ram Surat Ram Maurya, Presiding Member and Bharatkumar Pandya, Member
Kishor V. Patil and Anr. – Complainants
versus
M/s. Marvel Zeta Developers Pvt. Ltd. and Anr. – Opp. Parties
Consumer Case No. 58 of 2022
Decided on 5.8.2024
Consumer Protection Act, 1986 – S.21(1)(a)(i)[Consumer Protection Act, 2019 – S.58(1)(a)(i)] – Services – Allotment of Flat / Plot – Delayed Possession – Compensation award of – Opposite party-1 has not given the date, when he has applied for issue of ‘occupation certificate’. Pune Municipal Corporation issued notice dated 27.01.2020 for removal of unauthorised construction in Flat No.-A-104. In the circumstances, there is nothing on record to prove that before January, 2020, opposite party-1 applied for issue of ‘occupation certificate’. From 22.03.2020, the country faced lock down. For unauthorised construction raised by the complainants and due to spread of pandemic Covid-19 in the country and consequent lockdown by the government from 22.03.2020, the opposite parties are entitled for extension of period due to force majeure from January, 2020 till offer of possession – Further, None of the nationalised bank in country ever gave 18% interest even on ‘fixed deposit’. The complainants paid consideration of their flats, of which, they were handed possession. They were deprived possession of their flat for period after due date of possession as such for as such period compensation for loss of user in terms of money is payable. After excluding the period of force majeure, we found that the complainants are entitled for delay compensation from January, 2018 till December, 2019. So far as default committed by the complainants is concerned, the opposite parties have already charged interest on it in terms of the agreement – The complaint is partly allowed. Opposite party-1 is directed to pay delay compensation in the form of interest @6% per annum on the deposit of the complainants (excluding taxes) for the period from January, 2018 till December, 2019. [Para 8 to 16].
Result: Complaint partly allowed.
ORDER
Heard Mr. Siddharth Yadav, Senior Advocate assisted by Mr. Prashant R. Dahat, Advocate, for the complainants and Mr. Malak Bhatt, Advocate, for the opposite parties.
2. Kishor V. Patil and Balbhim D. More have filed above complaint, for directing the opposite parties to (i) handover peaceful possession of the flats to them; (ii) reimburse the amount charged for the piece of the land which is fraudulently transferred to Pune Municipal Corporation for construction of 20 meter wide road; (iii) pay compensation of Rs.25/- lacs, for not providing external amenities as promised by the opposite parties; (iv) pay interest @18% p.a., on the total amount deposited by them, as delay compensation; (v) pay Rs.50/- lacs, as compensation for harassment and mental agony; (vi) pay Rs.15/- lacs as litigation cost; (vii) pay compensation as per clause 14 of the agreement; and (viii) any other relief, which is deemed fit and proper in the facts of the case.
3. The complainants stated that the opposite parties launched a group housing project in the name of “Marvel Piazza” on Survey No.226, at Viman Nagar, Village Lohegaon, Taluka Haveli, District Pune, for which they obtained sanction from the office of the Collector on 02.01.2013 for conversion of the land from agricultural to non-agricultural use and ‘commencement certificate’ on 04.03.2015 from Pune Municipal Corporation. The complainants visited the office of the opposite parties on 30.04.2015 and they confirmed that the project had been sanctioned and would be completed in time and the possession would be handed over on or before 31.05.2017. The opposite parties represented that the flat would consist of open terrace admeasuring 47.21 sq. mts. and two covered car parking and other amenities like basketball court, volleyball court etc. On the assurance of the opposite parties, complainant-1 booked Flat No.A-104 and complainant-2 booked Flat No.A-103 and in building ‘A’ ‘Marvel Piazza’, for basic sale consideration of Rs.28378750/- (total Rs.32681000/-) as quoted in agreements dated 07.08.2015. Third Schedule of the agreement provides “construction linked payment plan”. Clause-5(b) of the agreement provides that possession would be handed over on or before 31.05.2017. As per demand of the opposite parties, complainant-1 deposited Rs.26353434/- and complainant-2 deposited Rs.28050000/-. Thereafter, the complainants regularly followed up with the opposite parties about the progress of the project but no satisfactory reply was given. The complainants came to know that the opposite parties got registered the project ‘Marvel Piazza Phase 01’ with the Maharashtra Real Estate Regulatory Authority on 01.05.2017, giving completion date as June, 2018. The registration shows that a portion of northern side of the project ‘Marvel Piazza’ is falling under ‘Air Force Restriction Area’ because its proximity to the outer perimeter of Lohegaon Air Force Station. Due to falling of the part of the project land within ‘Air Force Restriction Area’, the common amenities have not been developed. Although, the opposite parties with malicious intention published the flats and amenities of ‘Marvel Piazza’ to the prospective buyers. They also allocated 20 mtr. wide land inside the project for development of road (D.P. road) to the Pune Municipal Corporation without consent of the complainants and other allottees, after execution of the agreement. The complainants sent a legal notice to the opposite parties on 24.08.2017, seeking possession of the flat or refund the entire amount with interest @ 9% p.a. from the date of respective deposit till realization and pay compensation of Rs.50/- lacs. The opposite parties neither replied to the legal notice nor delivered possession of the flat. On 26.09.2017, the complainants filed a police complaint with the Police Commissioner requesting to register an FIR under Sections 406, 417, 420 120(B) read with Section 34 IPC but the police authorities did not register the FIR. The
Ireo Grace Realtech Private Limited Vs. Abhishek Khanna (2021) 3 SCC 241.(Para 6)
Lata Construction vs. Dr. Ramesh Chandra Ramaniklal Shah
Meerut Development Authority vs. Mukesh K. Gupla
Samruddi Co-operative Housing Society Limited vs. Mumbai Mahalaxmi Construction Pvt. Ltd.
Extension of Period – For unauthorised construction raised by the complainants and due to spread of pandemic Covid-19 in the country and consequent lockdown by the government from 22.03.2020, the opp....
Delay in handing over possession of residential flats attracts compensatory interest as per the agreement terms.
The court determined that delayed compensation is owed at 6% per annum in cases of non-compliance with delivery timelines dictated by agreements.
Builders must not impose unfair charges or conditions that undermine consumer rights, ensuring timely possession and compliance with agreements.
Developers are accountable for possession delays and quality issues under housing agreements, invoking the Maharashtra Ownership of Flats Act and Consumer Protection Act.
Contractual clauses that impose unfair obligations are unenforceable, and unreasonable delays in property possession warrant compensation.
Holding Charges – If an allottee fails to take possession, when offered by the company, the allotee shall be liable to pay holding charges.
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