A real estate developer is liable for inordinate delays in handing over possession despite claims of force majeure or government approval issues; one-sided contractual conditions are unfair trade practices and subsequent purchasers inherit the original allottee's rights to claim compensation.

ORDER

DR. INDER JIT SINGH, PRESIDING MEMBER

1. The present Consumer Complaint has been filed under Section 21(a)(i) of the Consumer Protection Act, 1986 by the Complainant Association against the Opposite Parties, inter alia, praying for directions to the OPs to deliver peaceful possession of flats along with Occupation Certificates, to execute conveyance deeds in favour of all allottees, and to pay interest @ 24% per annum for the delay in handing over the possession and Rs.45,00,00,000/-(Rs Fourty Five Crores) to all members for mental agony and Rs. 5,00,000/- as litigation cost also the refund of Service Tax charged from the members charged during instalments alongwith the interest.

2. The main prayer in the complaint was for possession with amenities and execution of the conveyance deed; However during the hearing on 30/01/26 the counsel for the complainant submitted that during the pendency of this complaint, the OPs obtained the OCs for all the towers and subsequently delivered possession to them. However, he contends that all the promised amenities were not provided at the time of giving possession or even till today. The complainant is now seeking delay compensation and directions to the OPs to provide the lacking amenities and facilities.

3. The Complainant Association was registered on 22.07.2016 under the Societies Registration Act, 1860. The Complaint was filed on behalf of 222 members who are allottees of the residential project "Hubtown Greenwoods" at Thane, Maharashtra.

4. It is averred/stated in the complaint that:-

i) The Opposite Parties launched the residential project "Hubtown Greenwoods" in the year 2009, comprising six wings (A to F) with different promised dates of possession as per the respective Agreements for Sale:

- Wing A: May 2013

- Wing B: November 2011

- Wing C: November 2011

- Wing D: December 2012

- Wing E: December 2012

- Wing F: August 2013

ii) The Complainant alleges gross delay in handing over possession, with delays ranging from 39 to over 60 months as of the date of filing. It is also alleged that the OPs unilaterally extended possession dates, changed sanctioned plans, and failed to disclose that the project was part of the Rental Housing Scheme of MMRDA. The Complainant further contends that the OPs insisted on illegal conditions, such as signing Indemnity Bonds and withdrawing legal proceedings, as a pre-condition for handing over possession.

5. OP's in their written statement/reply stated that:-

(i) They have preliminary objections on maintainability, contending that the Complainant Association is not a "recognized consumer association" within the meaning of Section 12(l)(b) of the Consumer Protection Act, 1986. It is argued that the Association was formed with a restricted membership and only to litigate, not to serve consumer interests. The OPs also contended that the dispute involves an arbitration clause and that the members are investors, not consumers.

(ii) On the merits, the OPs submitted that the delay was caused by factors beyond their control, such as the implementation of the Rental Housing Scheme, delays in governmental approvals, and a shortage of construction materials. They also pointed out that several allottees have already taken possession and that the project has been substantially completed with Occupation Certificates being obtained for various wings between 2017 and 2023.

6. Heard counsels of both sides. Contentions of the parties are summed up as follows:

6.1 Complainants contentions:

a) The complainant is a registered Welfare Association of buyers