Facts
- The department of Town and Country Planning granted license to Precision Retailers Pvt. Ltd., Blue Planet Infra Developers and Madeira Conbuild Pvt. Ltd for developing a group housing colony on a vast tract of land in Gurgaon. The project comprising 1356 apartments and the license was transferred to the developer (Appellant).
- The developer opened the booking for the apartments in 2013, one of the respondents was allotted a 2BHK flat in the subject matter and allotment letter for the same has been issued. Allottees receive the copy of the apartment buyer agreement with the construction linked payment plan. In April, 2014 the developer executed the apartment buyer agreement in favor of the respondent for the total consideration of Rs 1,45,222,006/-. After the payments were made the allottees were not handed over the possession even after passing of the grace period.
- Even after not getting possession till 2017, respondent filed a consumer complaint before the National Consumer Dispute Redressal Commission. The National Commission directed the developer to refund the amount of Rs 1,44,72,364/- at the rate 20% per annum and compensation towards the damages on account of harassment, mental agony and litigation charges.
- The buyer in the complaint submitted that developer had invited applications from the public for booking flats in the housing complex by misrepresenting the necessary approvals and promise that the construction would be completed within the period of 42 months from the date of collection of initial booking amounts.
- As per the terms and conditions of the agreement possession of the flats or apartments has to be handed within 42 months from the approval of the building plans, with a grace period of 180 days. The developer does not offer or hand over the possession of the apartments to the buyers till the last date of filing the complaints. The time period of handling the possession expires on 22-07-2017.
- The buyers contented/ submitted that the plan was revised in 2017 and the same be converted into commercial towers and District Town Planner. Gurgaon, Haryana issued memo to the developer to immediately to put stay on the construction for causing harassment to the buyer.
- The developer filed its reply to the consumer complaint submitting that there was no delay in offering possession of the flat and contented that after giving all necessary approval the period expires on 27-11-18, so there in no delay in possession.
Held
National Consumer Dispute Redressal Commission
The commission held that the since the developer had failed to deliver the possession, it amount to deficiency and developer is liable to refund the money with interest to the buyers.
Supreme Court
Developer filed a Special Leave Petition before the Supreme Court by feeling aggrieved from the decision of the NCDRC. The Supreme Court rejected the petition and directed the developer was directed to revert the amount of the buyers within four weeks with interest of 10% per annum.
RERA
Regarding same project an apartment buyer files a complaint under section 31 R/W 28 of RERA Haryana. The authority held that due date for handling possession was November 2018 and further held that the developer failed to fulfill the obligation to some extent and was liable to pay interest at the rate 10.75 percent per annum and directed developer to hand over the possession of the flats to the buyer by 03-07-2020. The developer failed to refund the principal amount and was directed to refund the amount within four weeks at the rate of 9% per annum and if developer does not comply with the direction, then shall be liable to pay default interest at the rate of 12% per annum.
Summary of the case
A developer posts an invitation to offer to public for booking apartments in Gurgaon. The buyers interested booked the flats and paid the money but the developer fails to handover the possession of the flats to the buyer. One of the buyers filed a complaint under NCDRC, the award granted was in the favors of buyers. The commission directed to revert back the money of buyers with interest. Later on developer filed Special Leave Petition before the Supreme Court, the court rejected the same and directs developer to pay back money with interest to the buyers. Another complaint has been filed by another buyer under RERA, Haryana, and the authority orders to pay the interest money and to hand over the possession but the developer fails to comply with the directions of the authority. The developer was directed to refund the money with 9% per annum to the buyers and stated that if he fails to comply then he shall be liable to pay the amount with interest at the rate 12% per annum.