The National Consumer Disputes Redressal Commission has ordered Pioneer Urban Land & Infrastructure Ltd., the developers of Araya housing complex in Gurugram Sector 62, to refund ₹3.22 crore deposited by a buyer along with 9% interest for failing to deliver the apartment despite lapse of five years.
The Commission issued the direction after it rejected the justification given by the developer for the delay in the completion of the project. The home buyer had booked the 3498 fq. ft apartment in November 2011 for a total consideration of ₹3.45 crore. The possession of the apartment was to be allotted by November 2015.
However, till date, the possession of the booked apartment has not been offered by the developer despite 95% (₹3.22 crore) payment being made till December, 2015.
Advocate Aditya Parolia, appearing for the aggrieved home buyer, said his client regularly visited the site but “they were surprised and shocked to see that the construction was never in progress”. “The entire site seemed to be an abandoned piece of land with semi-constructed structure. Even, No one was present on the site to address their queries about the completion of construction,” he said.
Mr. Parolia contended that the home buyer was “forced to sign a one-sided ‘Flat Buyer Agreement’”, under which the developer agreed to pay compensation at ₹10 per sq. ft. per month for the period of delay in giving possession.
“If it is calculated in terms of financial charges, it comes to approximately 1.4% p.a. rate of interest and even these charges are to be paid after 39 months which is period for completion of construction,” Mr. Parolia argued.
The Pioneer Urban Land & Infrastructure Ltd. argued that the delay in giving the possession has been purely on account of ‘Force Majeure’ (unforeseeable circumstances) factors. The firm listed several reasons, such as delay in payments by many customers and demonetisation of ₹500 and ₹1000 currency notes due to which they said, there was crunch of funds for the material and labour for 4 to 5 months.
The firm also cited lack of infrastructural support from the State government. It said despite payment of External Development Charges, the Haryana government did not provide basic amenities, such as drinking water, sewerage, drainage, including storm water line, road etc. in time.
The Commission, however, in view of the pandemic, granted three months’ time to the developer to comply with the order, failing which the amount shall carry interest 12% p.a.