The builder, BPTP, has also been ordered to pay Rs 50,000 as cost of litigation.
In its first order passed against a real estate company during the coronavirus pandemic through the virtual mode, the National Consumer Disputes Redressal Commission has directed a real estate company to refund Rs 1.19 crore to a homebuyer alongwith a simple interest of 10 percent per annum.
The builder, BPTP, has also been ordered to pay Rs 50,000 as cost of litigation. The order has to be executed within three months from the date of receipt of the order.
The homebuyer, in his complaint, had alleged unfair trade practices such as deficiency in service despite having paid 80 percent of the unit's amount to the builder, extension of construction period, onerous and one-sided terms and conditions which the buyer had to accept and also an escalation in total consideration from Rs 1.26 crore to around Rs 1.45 crore.
The consumer complaint was filed on November 30, 2017 under Section 21 read with Section 12 (1) (a) of the Consumer Protection Act 1986.
The buyer had invested in the project Astaire Gardens by BPTP in Gurgaon in 2012. He had paid Rs 7 lakh as booking amount in May 2012. The total cost of the unit was Rs 1.26 crore, including Rs 2 lakh for club membership.
The allotment letter provided for possession within 30 months from the date of signing the Floors Buyers Agreement (FBA), which was executed on October 25, 2012, after having paid Rs 17.25 lakh.
The FBA promised possession to the buyer within 36 months from the date of the sanctioning of the building plan or execution of the FBA and also allowed a grace period of 180 days.
As per the complaint, the builder unilaterally extended the time period of the delivery from 30 months in the allotment letter to 36 months in the FBA.
The buyer had paid Rs 1.19 crore to the builder and possession was due in 2016.
The buyer, in his complaint, had asked for handing over possession of the unit within six months, failing which he wanted 100 percent refund of the total Rs 1.19 crore with penal interest of 18 percent per annum from the date of receipt of the payments.
The buyer had also asked for a payment of Rs 6,000 per day in case the developer failed to deliver the unit within six months and Rs 10 lakh compensation for causing mental agony, harassment, discomfort and undue hardships.
The buyer had also demanded that Rs 1 lakh be paid to him for litigation cost and that all wrongful charges be refunded with interest at the rate of 18 percent from the date of receipt. He had also asked for permanent club membership without any charges.
The complaint was contested by the builder in February 14, 2018. The realtor argued that as per the agreement, all disputes had to be settled amicably and that the buyer was an investor based in Oman.
The builder had argued that there was no question of any delay in offering possession since the complainant was an investor and did not wish to take possession since the real estate market was in decline.
It also claimed that there was no cause of action as possession had already been offered.
The buyer had countered these arguments by saying the builder had concealed and misrepresented facts.
"Builders who fail to deliver upon their commitments should be dealt with severely. Homebuyers who have invested their hard-earned money with builders cannot be made to wait indefinitely despite making huge payments. The government should call for a suo motu enquiry into these issues," Aditya Parolia, advocate for the homebuyer, told Moneycontrol.
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