A developer's failure to disclose accurate carpet area and sanctioned plans, while charging excess consideration based on inflated area, constitutes a deficiency in service and unfair trade practice entitling the consumer to a refund of the excess amount.

JUDGMENT

Per: Hon’ble Ms. Poonam V. Maharshi, Presiding Member.

1. The present Consumer Complaint is filed by the Complainant, under the provisions of the Consumer Protection Act, 1986 against the Opposite Party developer M/s. Rachana Projects and its partners, alleging deficiency in service and unfair trade practice.

2. The case of the Complainant, in brief, is that he is the purchaser and occupant of Flat Nos. 201 and 202 in the building known as “Rachana Divine”, situated at Dombivli, District Thane. The Complainant submit that he had been residing since the year 1972 in the building known as Parijat Building, occupying Room Nos. 4 and 5, each admeasuring area about approximately 383.29 sq. ft. and 385.44 sq.ft. carpet respectively. The Complainant is lawful tenant of the said premises under the ownership of Mr. Prabhakar Raikar, and they have been regularly paying monthly rent to the said landlord. Owing to the dilapidated condition of the said building, the landlord entered into a redevelopment arrangement with the Opposite Party by executing a Memorandum of Understanding dated 06.07.2012, followed by a Development Agreement dated 14.03.2013, under which the Opposite Party undertook to demolish the old structure and construct a new building on the said land bearing CTS Nos. 7116 to 7120 situated at Village Gajbandhan Patharli, Taluka Kalyan, District Thane. The Opposite Party had undertaken the responsibility of negotiating and settling all terms and conditions with the existing tenants, including the Complainant, and for obtaining their consent letters through proper negotiations, as recorded in the Memorandum of Understanding dated 06/07/2012.

3. Accordingly, the Opposite Party demolished the old building and constructed a new building known as “Rachana Divine”, consisting of stilt, ground floor and upper floors. The Opposite Party, being the promoter, offered residential flats to the tenants and members of the said Housing society by name Rachna Divine Co-operative Housing Society By name Rachna Divine Co operative Housing society Ltd. on ownership basis. The Complainant submit that, after negotiations and discussions, and in terms of the settlement arrived at with the existing tenants, the Opposite Party agreed to sell/allot flats to the Complainant at a fixed concessional rate of Rs. 1,000/- per sq. ft. of carpet area, as recorded in the Memorandum of Understanding. The Complainant further submit that, relying upon the said assurance and for the purpose of facilitating redevelopment of the Parijat Building, they lawfully waived and surrendered their tenancy rights in respect of the said premises.

4. The Complainant, being tenant, was allotted and agreed to purchase Flat No. 201 admeasuring area 365.98 Sq.ft and 202 admeasuring area 358.77 Sq.ft in the newly constructed building after surrendering there old Room No.4 admeasuring 383.29 Sq.Ft area and Room no.5 admeasuring 385.44 Sq.ft. Accordingly, the Complainant executed two separate registered Agreements for Sale dated 14.08.2014 with the Opposite Party. As per the said Agreements, the Complainant agreed to purchase Flat No. 201 admeasuring area 365.98 Sq.ft. for a consideration of Rs. 4,39,176/- and Flat No. 202 admeasuring area 358.77 sq.ft. for a consideration of Rs. 4,30,524/-, aggregating to Rs.08,69,700/-, which amount was fully paid by the Complainant to the Opposite Party. The Complainant conte