SUNITA RANI Vs. M/S. CHD DEVELOPERS

JUDGEMENT

(1.) The present Consumer Complaints have been filed under Sec. 12(1)(a) of the Consumer Protection Act, 1986 (for short "the Act") against Opposite Party No.1, M/s. CHD Developers (hereinafter referred to as Builder), Opposite Party No. 2, Mr. Gaurav Mittal, Director of the Opposite Party No. 1, by the Complainants / Allottees of Residential Flats in a Group Housing Project, namely, "106 Golf Avenue" (for short "the Project"), to be developed and constructed by the OP Builder in Sector 106, Gurgaon, Haryana, seeking refund and compensation for the losses suffered by them on account of Unfair and Restrictive Trade Practices adopted and the deficient services rendered by the Opposite Party in not handing over the possession of the allotted Flats/Apartments within the stipulated time.

(2.) Since both the Complainants have entered into identical "Agreements to Sell' with the Opposite Party; the facts and question of law involved in their cases are similar, inasmuch as physical possession of the allotted Flats, has not been handed over within the committed period and almost similar reliefs have been prayed for by both the Complainants, both these Consumer Complaints being disposed off through this common Order. However, for the sake of convenience, CC No. 1287 / 2019 is treated as the lead case and the facts enumerated hereinafter are taken from it.

(3.) According to the Complainant, facts of the case are that allured by the advertisements and the various lucrative representations made by the Officials and Brokers of the Opposite Party Builder that the Flats in the Project will be delivered within a period of 42 months, the Complainants applied on 2/11/2015 for allotment of an Apartment in the Group Housing Scheme launched by M/s CHD Developers Ltd., known as "106 Golf Avenue" in Sector 106, Gurgaon, Haryana. The Complainants were allotted 3 BHK Flat No. 106-T01-17/04 in the Project vide allotment letter dtd. 2/11/2015. Apartment Buyer's Agreement was executed between the Parties on 5/11/2015. The total sale consideration payable by the Complainant was ?1,40,22,475/-. The Complainants opted for subvention scheme. The Complainants paid a sum of ?13,55,582/- to the OP Builder on 2/11/2015 and paid another sum of ?1,04,39,410/- on 21/12/2015 after getting loan from the HDFC Bank Ltd. Under the subvention scheme, the OP Builder was to bear the payment of interest and other charges till the date of actual possession. It is stated that as per Clause 13 of the Buyer's Agreement, the possession of the Flat would be delivered by 5/5/2019 that is within 42 months from the date of signing of the Agreement. Despite receiving a huge sum of ?1,17,94,892/-, i.e., 85% of the sale consideration, the OP Builder neither delivered the possession of the Flat within stipulated period nor did it pay the interest as per Subvention Scheme till the date of possession, which adversely affected the Cibil rating of the Complainants. On several occasions, the Complainant visited the construction site but was shocked to find out that the construction was never in progress and no one was present at the site to answer the queries of the Complainant. The site was looking an abandoned piece of land with only a skeleton structure of semi constructed building. It is pleaded that as per Clause 13 of the Buyer's Agreement, it was agreed by the Opposite Party that in case they are not able to hand over the possession to the Complainant within the grace period of six months, the Opposite Party shall pay to the Complainant compensation, at the rate of ?10/-per sq. ft. per month the for the period of delay and if the said amount is calculated in terms of financial charges, it comes to approximately @ 1.4% p.a only. It is alleged that the Opposite Party has found a cheap source of funding the commercial Projects from the hard earned savings and borrowed money of innocent Apartment Buyers. Further, as per Clause 8, of the Buyer's Agreement, if there is any amount due from the Complainant, the Opposite Party would charge interest @ 18% p.a. on the said amount. The Opposite Party has collected the substantial amount for providing the common areas, parks, roads, boundary wall, security gates, generator sets, parking etc. in advance. No reason has been communicated to the Complainants despite repeated requests about the status of Construction and the Opposite Party is not in a position to give the committed date of handing over of possession.