Developers must adhere to contractual obligations regarding property possession timelines to protect consumer rights.

1. Heard Mr. Sukumar Pattjoshi, Senior Advocate, assisted by Mr. Somesh Kumar Dubey, Advocate, for the complainants and Mr. Prabhakar Tiwari, Advocate, for the opposite party.

2. Nagen Chandra Patnaik and Mrs. Vidhyut Patnaik have filed above complaint for directing Parsvnath Hessa Developers Private Ltd. (the developer) (i) to deliver possession of the flat, complete in all respect, at the earliest, (ii) to grant compensation in the shape of interest @24% per annum from 15.2.2014, i.e. promised date of possession including grace period, (iii) to grant compensation of Rs. 10,00,000, for mental agony and harassment, (iv) to grant Rs. 5,00,000 as the cost of litigation and (v) any other relief which is deemed fit and proper, in the facts and circumstances.

3. The facts, as stated in the complaint and emerged from the documents attached with it, are that the opposite party (the developer) was a company, incorporated under the Companies Act, 1956 and engaged in the business of development and construction of residential and commercial buildings and selling its unit to the prospective buyers. In the year 2009, the developer launched a project of group housing in the name of “Parsvnath Exotica” at village Wazirabad, Sector - 54, district Gurgaon, Haryana. M/s. Gunjan Infrastructure Pvt. Ltd. (the predecessors - in - interest of the complainants) booked a 4BR flat, in this project and was allotted Flat No. - B - 6-201, area 3390 sq.ft. and two car parking space, basic price Rs. 2,44,08,000 on 15.10.2010. The developer executed Flat Buyer Agreement dated 14.2.2011 in its favour. M/s. Gunjan Infrastructure Pvt. Ltd. opted for “Construction Linked Payment Plan” and till 20.1.2012 paid Rs. 83,33,089 to the developer. M/s. Gunjan Infrastructure Pvt. Ltd. transferred aforesaid flat to the complainants vide agreement dated 20.1.2012, for total sale consideration of Rs. 2,74,54,000 with prior permission of the developer. The complainants paid Rs. 99,01,089 to M/s. Gunjan Infrastructure Pvt. Ltd. and had to pay Rs. 1,75,52,911 to the developer, i.e. as per “Construction Linked Payment Plan”. The developer mutated the names of the complainants over flat No. - B - 6-201, in their record on 15.3.2012. The complainants deposited about 85% of total sale consideration till 2013 and total Rs. 2,67,03,815.51 till 3.3.2017 (including the money deposited by M/s. Gunjan Infrastructure Pvt. Ltd.), as per ledger of the developer. Under Clause - 10(a) of Flat Buyer Agreement dated 14.2.2011, possession has to be delivered within 36 months from the commencement of the construction with grace period of six months, which period expired in March, 2015. However, the developer stopped construction in 2013. The complainants met with the Director of the opposite party in March, 2016, and then he informed that the construction would be resumed within a short time and completed till June, 2016. The complainants wrote an email dated 6.10.2016, inquiring expected date of possession. The developer did not give any reply. The complainants visited site and found that the developer had opened its office in the flat allotted to them. This complaint was filed on 5.5.2017, alleging deficiency in service by the developer.

4. The opposite party filed its written reply on 19.9.2017, in which the material facts as stated in the complaint have not been denied. The developer stated that the complainants were investors and subsequent purchasers, as such, they were not a consumer and the complaint on their behalf was not maintainable. The developer entered into an agreement with M/s. Puri Construction Ltd. on 9.12.2009, for development of the project “Parsvnath Exotica”.