Consumers are entitled to compensation for delayed possession due to deficiency of service but not for VAT refund when contractual terms apply.

1. The present Complaint is filed under S.12(1)(c) of the Consumer Protection Act, 1986 .

2. The Complainant No. 1 is a voluntary Consumer Organization. Complainant No. 2 is the main aggrieved Complainant. Opposite Party No. 1 is the Developer and Opposite Parties Nos. 2 to 5 are Directors of Opposite Party No. 1.

3. The Complainant No. 2 entered into an Agreement dated 9.2.2008 with Opposite Party No. 1 for purchase of Flat No. 802, 8th Floor Fremont Wing (later called as A Wing) of a building known as California to be constructed in Pune. The carpet area of the flat was 130 sq. meters inclusive of balconies and terraces admeasuring 51 sq. meters. The total consideration of the flat was Rs. 1,08,66,340 As per clause 48 of the Agreement, possession was to be given on or before 31.12.2009. The letter of offer of possession was, however, received by the Complainant on 24.11.2016 and actual physical possession was taken on 21.12.2016. The possession was, thus, delayed for almost 7 years, from 31.12.2009 to 21.12.2016. Complainant No. 2 was also aggrieved by charging of Maharashtra Value Added Tax (VAT) by Opposite Party No. 1. Alleging deficiency in service and unfair trade practice on the part of the Opposite Parties, the Complainants filed the instant Consumer complaint with the following prayer:
(a) That the Opposite Parties be jointly and severally directed to obtain within a time bound period the Occupation Certificate and thereafter accept the balance amount of Rs. 4,30,654 and hand over to the Complainant No. 2 possession of Flat No. 802 (having a carpet area of 130 sq. metres inclusive of enclosed balconies and terraces admeasuring 51 sq. metres.) situated on the 8th floor of Fremont Wing (later called as A - Wing) of a California building;
(b) That the Opposite Parties be jointly and severally directed to bear all taxes, maintenance charges, electricity charges, and other outgoings in respect of the said flat till actual physical possession is handed over in a legal manner;
(c) That the Opposite Parties be jointly and severally directed to refund to the Complainant No. 2 the amount of Rs. 5,43,317 collected by the Opposite Parties towards VAT, so such part thereof which has been collected in excess of what has actually been paid by the Opposite Parties to the government;
(d) That on the consideration of 1,04,35,686 paid towards the flat till date as stated in para 5 above, the Opposite Parties be directed to pay to the Complainant No. 2 interest at 18% per annum for the period of delay, i.e. from 31.12.2009 (which is the date of possession mentioned in the agreement) till the date of actually handing over physical possession in a legal manner;
OR
Alternatively, in the event of inability to obtain the Occupation Certificate, the Opposite Parties be jointly and severally directed to pay to the Complainant No. 2 the market value plus the incidentals costs such as value added tax (VAT), stamp duty, and registration charges for a similar flat in a similar location to enable her to purchase alternative accommodation;
(e)
That the Opposite Parties be jointly and severally directed to pay to the Complainant No. 2 an amount of Rs. 10 lakh (equivalent to about 10 per cent of the consideration for the flat) as compensation for the physical harassment and mental tension;
(f) That costs of the complaint be granted; and
(g) For such further and other reliefs and / or directions as this Honble Commission may deem fit and proper.

4. The Opposite Parties resisted the Complainant by filing the written statement on the ground that the Consumer