Delay in handing over possession of residential flats attracts compensatory interest as per the agreement terms.

1. These Complaints have been filed by the Complainants under S.21 of the Consumer Protection Act, 1986 (hereinafter referred to as "the Act") against Ozone Projects Private Limited. As all these Consumer Complaints are relating to the same Project, i.e., "The Metrozone" and the issues involved are more or less similar, hence all these Consumer Complaints are being disposed of by this Common Order.

2. For the sake of convenience Consumer Complaint No. 2044 of 2017 is being taken as the lead case.

3. CONSUMER COMPLAINT No. 2044 OF 2017
The brief facts as stated in the Complaint are that the Complainants lured by the attractive advertisements of the Project "The Metrozone" of the Opposite Party, on 10.6.2009, booked a Flat No. R - 904, admeasuring 2661 sq. ft. in the said Project by paying an advance amount of Rs.5,00,000 to the Opposite Party. Thereafter, on 23.8.2009, the Complainants entered into an Agreement for Sale and Construction Agreement with the Opposite Party for the aforementioned Flat for a total sale consideration of Rs.1,62,41,932 (Cost of Land Rs.29,12,000 + Cost of Constructions Rs.1,32,29,931). As per Delivery Schedule mentioned in Annexure - 3 of the Construction Agreement the possession of the Flat was to be delivered in January, 2012. It is stated that the Complainants in total paid a sum of Rs.1,69,68,520 by availing a Housing Loan from HDFC Bank for an amount of Rs.1,00,00,000. It is alleged that the Opposite Party failed to hand over the possession of the Flat on agreed time despite having received substantial amount and arbitrarily changed the scheduled dates many times. The possession of the Flat was finally handed over to the Complainants on 1.9.2015, with the delay of 43 months, which caused mental agony, harassment and financial loss to the Complainants.

4. It is averred that the Opposite Party is charging interest @ 18% p.a. for any delay in payment of instalments by the Purchasers, as can be seen from Clause 5 (f) of the Construction Agreement and the Complainants herein have also paid an amount of Rs.3,68,372 towards interest for delay in payment @ 18% p.a. and keeping in view the parity the Complainants are also entitled for the same interest rate, i.e. @ 18% p.a. for delay in possession of the Flat.

5. On 4.2.2017, the Complainants got issued a Legal Notice to the Opposite Party claiming an amount of Rs.1,56,62,240 towards financial loss for delay in handing over of possession of the Flat. On 12.4.2017, the Opposite Party replied to the Legal Notice and denied all the allegations made by the Complainants and rejected their entire claim. Dissatisfied, with the response to the Legal Notice, the Complainants alleging deficiency in services and unfair trade practices on the part of the Opposite Party, approached this Commission seeking the following reliefs:
"(a) Compensate the interest losses incurred to the complainants, an interest amounting to Rs.97,97,527 (Rupees ninety seven lacs ninety seven thousands five hundred and twenty seven only) at the rate of 18% interest on Rs.1,69,68,520 (Rupees one crore sixty nine lacs sixty eight thousand five hundred and twenty only) from February, 2012 to August 2015, as it was charged by the Opposite Party from the Complainants for the delayed payments as per Clause 5(f) of the Constructions Agreement at the pro - rata basis for the 43 months delay in handover the possession;
(b) Compensate the rental loss of Rs.48,00,000 (Rupees forty eight lakh only) approximately incurred to the Complainants;
(c) Compensate the Complainants for the mental agony and the harassment to the tune of Rs.10,00,000 (Rupees Ten Lacs only);
(d) Compensate the loss of income tax benefit incurred to the Complainants, which is approximately Rs.1,80