SAURAV SANYAL Vs. M/S. IREO PVT. LTD

JUDGEMENT

(1.) Heard Mr. Saurabh Suman Sinha, Advocate, for the complainants and Mr. Rahul Ahuja, Advocate, for the opposite party.

(2.) Saurav Sanyal and Jayanta Sanyal have filed above complaint for directing M/s. IREO Pvt. Ltd. (i) for declaring letter dtd. 6/6/2016, terminating the allotment of the complainants and forfeiting earnest money, as illegal, (ii) to refund Rs.9390150.00 with interest @18% per annum, from the date of deposit till the date of payment, (iii) to pay Rs.1000000.00 as compensation for mental agony and harassment, (iv) to pay Rs.2.00 lacs, as the cost of litigation and (v) Any other relief which is deemed fit and proper, in the facts and circumstances.

(3.) The facts, as stated in the complaint and emerged from the documents attached with it, are that the opposite party (the developer) was a company, incorporated under the Companies Act, 1956 and engaged in the business of development and construction of residential and commercial buildings and selling its unit to the prospective buyeRs..00In the year 2011, the developer launched a project of group housing in the name of "The Grand Arch " at Golf Course Extension Road, Sector-58, district Gurgaon. The complainants were looking for a residential flat in that locality and they were attracted with the presentation of the developer. The complainants booked a flat, in this project and were allotted Flat No.-F-1-202 (area 2156 sq.ft., basic sale price of Rs.28707140.00and total sale price of Rs.30294816.00) by an allotment letter dtd. 19/12/2014. According to the payment plan, 10% of the basic sale price had to be paid at the time of allotment and 20% of the basic sale price and 50% of the other charges had to be paid within 50 days of the booking and remaining amount had to be paid at the time of possession. The complainants deposited Rs.9390150.00 and Apartment buyer 's Agreement was executed in their favour on 12/2/2015. The developer obtained "Occupation Certificate " on 17/12/2015 and issued notice of possession dtd. 23/12/2015, requiring the complainants to complete the formalities of documentation and paying balance amount of Rs.21912325.00 as basic sale price, Rs.2009500.00 as stamp duty charges, Rs.215600.00 in favour of Grand Arch Resident Welfare Association, Rs.239305.00, in favour of Quick Real Estate Pvt. Ltd., Rs.6000.00, in favour of Sakha Services Private Ltd. and Rs.221337.00in favour of Salvato India, on or before 22/1/2016. The complainants visited the office of the developer on 28/12/2015 and found that construction work was going on but the officers gave assurance that it would be completed before 22/1/2016. The complainant approached Citibank for grant of loan, from where loan of Rs.9000000.00 was sanctioned on 16/2/2016, for which a tripartite agreement dtd. 24/2/2016 was executed. Citicorp Finance (India) Limited sanctioned loan of Rs.10000000.00 on 2/3/2016. However, the construction was not complete in all respect, the complainants asked the developer to complete the construction and then payment would be done as at that time water leakage was found in master bedroom and bathroom and guest bedroom and bathroom, number of stones were broken in the flooring of living room, double glazed window glass was broken and Interior not having been painted or polished. The complainants apprised the builder about the defects vide email dtd. 18/2/2016. The complainants requested the developer to extend time for deposit of the money till the completion of the construction. The developer, vide letter dtd. 6/4/2016, gave last opportunity to the complainants to deposit the amount of Rs.24604067.00 along with delayed interest and holding charges within 30 days. The complainants offered a cheque of Rs.2.00 crores and requested to postpone the demand of balance amount till completion of the construction and also gave a letter dtd. 5/5/2016, in this respect. But the developer, vide letter dtd. 6/6/2016, terminated the allotment/agreement and forfeited the money deposited by the complainants on account of earnest money, brokerage, delayed interest and service tax etc. The complainants made a complaint before Confederation of Real Estate Developers Association of India on 25/6/2016, however vide email dtd. 14/9/2016, (communicated to the complainant on 29/9/2016) CREDAI dropped the complaint. The complainants issued a legal notice dtd. 13/10/2016 to the developer, which was replied by the developer on 5/12/2016. Then this complaint was filed on 16/3/2017, alleging deficiency in service and unfair trade practice on the part of the developer.