JAYPEE KOVE BUYERS ASSOCIATION Vs. JAIPRAKASH ASSOCIATES LIMITED

JUDGEMENT

(1.) The present Consumer Complaint has been filed under Sec. 21 read with Sec. 12(1) (b) of the Consumer Protection Act, 1986 (for short "the Act") by Jaypee Kove Buyers Association registered under the Societies Registration Act, 1860 (hereinafter to be referred to as the "Complainant Association"), on behalf of its 71 Members against the Opposite Party, M/s. Jaiprakash Associates Ltd. (hereinafter referred to as "the Developer") interalia, alleging deficiency in service in not handing over the possession of the allotted Units within the period as prescribed in Provisional Allotment Letter and seeking either possession with delayed compensation or refund of amount paid by them along with reasonable interest and compensation.

(2.) The facts as narrated in the Complaint are that in the year 2010, Opposite Party Developer launched a Multi-storied Group Housing Project under the name and style of "The Kove, Greater Noida" located at Lake District at Jaypee Sports City, Sector 25, Yamuna Expressway Industrial Development Authority Area, District Gautam Budh Nagar, Uttar Pradesh (hereinafter referred to as "the Project"). Allured by the exaggerated advertisements, claims and assurances given by the authorized representatives of the Opposite Party Developer that the Project is part of Jaypee Green Sports City adjacent to 8 Lane Taj Expressway, there would be every modern facility available and the physical Possession would be handed over within 42 months from the date of booking, the Members of the Complainant Association booked respective Residential Units in the said Project in the year 2010-2013 by filing up the Application Form. Some of the Members of the Complainant Association directly purchased the Units from the Opposite Party Developer and some Units were purchased on resale. The payment of the Sale Consideration of the Unit was to be made in four different plans i.e. Down Payment, Partial Down Payment, Construction Link and Subvention Plan. The total Sale consideration was including of Basic Sale Price (BSP), Preferential Location Charges (PLC), External Development Charges (EDC)/International Development Charges (IDC), Maintenance Advance, Club Membership, Parking, Lease Rental Charges and Interest Free Maintenance Advance. It is averred that the Opposite Party Developer has collected 90% to 95% of the total Sale Consideration from the Flat Purchases only by lying of the top floor roof of the Shell and the remaining 5% to 10% is payable at the time of possession. The funds entrusted by the Flat Purchasers for construction of the Project have been misappropriated by the Developer. It is alleged that the Application Forms contained the Standard Terms and Conditions which were unfair, biased, arbitrary, unjust and the Flat Buyers were required to sign the same without any negotiation and reservation. Further, the Members of the Complainant Association were allotted respective Units through Provisional Allotment letters by the Opposite Party Developer. According to the Provisional Allotment Letters, the possession of the booked Units was promised to be delivered within a period of 42 months from the date of its issuance. However, despite several repeated requests and having received a huge amount from the Members of the Complainant Association, the Opposite Party Developer has miserably failed to hand over the possession of the respective Units, complete in all respect to them, within the stipulated period.

(3.) It is stressed that relying upon the name and reputation of the Opposite Party Developer, the Members of the Complainant Association kept on depositing the amount as per demands made by them against the payment receipts as well as Statement of Account. It is also alleged that by different emails giving wrong information about the exact status of the construction of the Project, the Opposite Party Developer has persuaded to the Flat Buyers to make the payments as demanded by them. The Complainant Association had various meetings with the Opposite Party Developer about the slow pace of the construction, however, the Developer has failed to give the exact date of completion of the Project and to hand over the possession. Vide email dtd. 22/2/2016, one of the Member of the Complainant Association was informed by the Developer that the possession would be handed over by second quarter of 2018 which itself substantiates the fact that the construction of the Project would not be completed and the Developer would not be in a position to hand over the possession of the respective Units to the Flat Buyers till the said date. It is also stated that the Developer was charging exorbitant interest @18% for the delayed payment by the Flat Buyers in terms of the Clause 5.6. of the Standard Terms and Conditions, however, they are liable to pay delayed compensation @ Rs.5.00 per sq. ft per month as per Clause 7.2 of the terms and conditions. Complainants have also alleged that the Super Area of the Unit was increased by the Developer without their consent and in violation of the provisions contained in Sec. 4 of the UP Apartment (Promotion of Construction, Ownership and Maintenance) Act 2010. Most of the Members have borrowed money from the Financial Institutions for payment of Sale Consideration and they are paying the huge EMI. It is alleged that the construction is stalled and abandoned since last 2-3 years and they have lost the trust in the Developer inasmuch as there is no possibility of completion of the Project in the near future. The details of the Complainants, Unit Allotted, Booking Date, Area of Flat, Date of Issuance of Provisional Allotment Letter (PAL) and Expected Date of Delivery of Units, is reproduced in the following table:-