Delayed compensation under Consumer Protection Act determined at 6% interest per annum for home buyers due to significant construction delays.

1. Heard Mr. Govind Jee, Advocate, for the complainants and Ms. Garima Jain, Advocate, for opposite party.

2. 51 sets of home buyers of the opposite party have filed above complaint as a representative case. The permission under S.12(1)(c) of the Consumer Protection Act, 1986 has been granted by this Commission on 5.7.2019 and notices have been published in two local newspapers. Above complaint has been filed for directing the opposite party to (i) pay each of the complainants compensatory interest @18% per annum, for the total period of delay in handing over possession as indicated in para 11.11 of the complaint; (ii) to refund, illegally charged carparking fee with interest @18% per annum, (iii) to refund illegally charged legal fee with interest @18 % per annum; (iv) to refund the fee charged towards BESCOM & BWSSB charges after deducting as per actual with an interest @18 % per annum; (v) direct opposite party to provide Green Jogging Track and Convenience Store as promised in Brochure, in time bound manner, else pay compensation of Rs. 5,00,000 to each complainants and each buyer having same interest and (vi) any other relief which may be deemed fit and proper in the facts and circumstances of the case.

3. The complainants stated that M/s. S.J.R. Prime Corporation Private Limited (the opposite party) (the developer) was a company, incorporated under the Companies Act, 1956 and engaged in the business of development and construction of group housing project and selling its unit to the prospective buyers. The developer launched a project of group housing in the name of Fiesta Homes by SJR Prime, at Doddanagarmangala village, Begur Hobli, Bangalore South Taluk, Bangalore in the year 2011. The developer widely advertised the project and represented for on time delivery of possession and world class modern facilities and amenities. Believing upon the representation and tall promises of the developer, all the complainants booked one flat each for them, in the 2012. The details of date of booking, flat number etc. aregiven in Exhibit PW / 5.

4. The facts relating to complainant - 44 are stated herewith. The developer allotted Unit No. 604 (admeasuring 1,037 sq.ft.), Block Magnifica tocomplainant - 44, vide allotment letter dated 26.3.2012. The developer and the owner of the land executed an Agreement to Sell dated 31.3.2012, in respect of undivided proportionate saleable area of land for Rs. 14,67,600. The developer executed a Construction Agreement dated 31.3.2012, in favour of complainant - 44, for construction of above flat, showing total cost of construction as Rs. 26,12,727. Schedule - E of this agreement contained Construction Linked Payment Plan under which, total sale consideration was payable in 12 instalments on different levels of the construction. Clause - 6.1 of the agreement provided date of completion of construction as March, 2014 with six months grace period. According to the payment plan, 90% of total cost was realized time to time. However, the construction was not completed on due date. It has been stated that the construction was delayed for a period of 40 months from due date. The developer obtained Occupancy Certificate on 17.05.2017. Thereafter, possession was offered. Title deeds were executed from January, 2018 onward. At the time of offer of possession, delayed compensation was paid at the rate of Rs. 2 per sq.ft. per month of the super area. On taking possession, it was noticed that the construction was not done as per specification. The home buyers gave emails dated 10.12.2018 and 26.3.2019 pointing out deficiency in construction. The