Post covers Land Twister Homes Consumer Complaint whereon compensation for delay in possession awarded to buyer.
PAPRA Act, the protector of the customers from exploitation
Punjab Apartment and Property Regulation Act which came into force in the year of 1986 to protect the interest of the buyers of plots/flats. This act provides for the registration and obligations for the promoters and estate agent. The act ensure that the flats are build with certain quality with proper licensing of the colonies and to encourage private sectors to invest in the housing estate by promoting Transparency and Qualitative in this sector. In this case study, we will look into how the state consumer disputes redressal commission enshrined the spirit in which legislature passed the PAPRA act when complainant filled the complaint under Section 17 of The Consumer Protection Act, 1986.
Priyanka Gupta vs Land Twister Homes
Brief facts in the complaint
The complainant booked a flat in the project of the opposite party and gave the booking amount of Rs. 5000/- and the basic price was Rs. 23,50,000/- which includes the registry cost and GST. Thereafter the complainant paid series of amount which incudes Rs. 95,000 for which the complainant was issued allotment letter and Rs. 1,50,000 leading to the total sum of Rs.4,00,000 deposited by the complainant to the opposite party for the flat in question. At the time of the booking the complainant was assured by the opposite party that the delivery of the fully developed possession will be done within the period of five months from the date of allotment which they failed to do so. The opposite party forced the complainant to sign a unreasonable flat buyer’s agreement which was one sided in nature and refused to change the provisions and forced to sign on dotted lines thereof. They extended the period of delivery of the possession. The pressure given by the opposite party were to forfeiture the amount given by the complainant. After seven months, the complainant took inquires about the development of the flat but they kept of delaying the possession of the flat.
Also Read- Deficiency in Services for Delay in Possession – Legalseva.net
Even when filling the complaint, the complainant has not received the delivery of the possession of the flat. 29(b) of the buyer’s agreement provides that if the developers company is not able to deliver the possession of the flat within the period of nine months, then they will pay 15/- per sq. ft. per month of the super area thereof which was also not paid to the complainant. This act amounts to deficiency in service and unfair trade practices and the seeks following directions to the opposite party
- To deliver the possession of the flat in question and if it is not possible, then refund the entire amount
- To pay the interest of 18% per annum on the entire amount of Rs.4,00,000
- To pay the rent being paid by the complainant which is 10,000/- for the delay in delivery of the possession till the entire amount with compensation is not being paid.
- To pay Rs.3,00,000 for mental harassment
- To pay Rs.1,10,000 for litigation expenses
Also Read- Land Twisters Consumer Complaint Refund Case
Evidence submitted by the complainant
- Complainant’s own affidavit
- Receipt of booking amount
- Receipt of amount of Rs.95,000
- Allotment Letter
- Receipt of amount of Rs. 1,50,000
- Flat buyer’s agreement
- Photographs of the flat
Also Read- RERA Punjab Complaint against Land Twister Homes Kharar
Defence of the Opposite party
They did not appear before the commission and were proceeded against ex-parte.
Contentions of the complainant
The opposite party have failed to deliver the possession of the flat within the period of time that was agreed on the agreement despite receipt of substantial amounts to towards price of the flat. The complainant visited so many times in the site of the flat but found not developed in the constructions. The opposite party forced the complainant to sign in the one sided and arbitrary terms and conditions buyer’s agreement. The opposite party have used the amount of the complainant for their own benefit without developing the site in construction. The opposite party have failed to get approval and sanction from the necessary authority.
Also Read- Nihal Singh Saini vs M/S Land Twishters on 9 April, 2019
Consideration of contentions
There is no doubt regarding the complainant booking the flat whose basic price was and paying the sum of Rs. 23,50,000/- and paid Rs. 5000/-, Rs. 95,000, Rs. 1,50,000 leading to total sum that paid was Rs.4,00,000. In prayers, the complainant, in an alternative relief, seeks refund of the total amount.
Also Read- Sanjeev Sharma v. M/s Land Twisters – CaseMine
Clause 29(b) of the Flat Buyer’s agreement gives the information that, the company is to endeavour to deliver the possession of the flat within the period of nine months from the date of execution of allotment letter, subject to force majeure circumstances, failing which the company was liable to pay penalty at the rat of 15/- per sq. ft. of the super area of the flat per month till offer of the possession or possession is taken by the allotee, whichever is earlier. The opposite party failed to deliver the possession of the flat within the nine months as mentioned in the buyer’s agreement as evidence shown by the complainant of photographs of the flat which shows the semi construction status of the flat. The opposite party failed to deliver the project within the stipulated period of time and hence the complainant is entitled to hold the payment of the further instalment.
The opposite party did not appear before this commission and thus, all the averments made in the complaint are deemed to have been admitted by the opposite party and the evidence submitted by the complainant stands unrebutted.
The opposite party have failed to comply with the following provisions of the Punjab Apartment and Property Regulation Act, 1995.
Also Read- FIR againt Ess Vee Apartments’ Builder – Latest Legal News
Section 3 of the act states that the opposite party is liable to make full disclosure of the nature of the tittle of the land on which such project is developed or on which such site is constructed, including any right, title, interest, claims of any party in or over such land. They were also required to give seven days notice or demand of layout of the colony and pay of development work to be executed in the project, as approved by the prescribed authority in the case of the project.
Section 5 of the act states that the promoters (opposite party) were liable to obtain permission from the competent authority for developing the project.
Section 9 of the act states that every builder is required to maintain a separate account in a scheduled Bank, for deposing the amount deposited by the buyer (complainant), who intends to purchase the plot/flat/commercial space/unit.
Also Read- Kharar Zirakpur Derabassi –Complaints against Builder for Delay in Possession
Rule 17 framed under Section 45- rate of interest of refund of advance money upon cancelation of agreement: The promoter shall refund the full amount collected from the prospective buyers under sub-section (1) of section 6 with the interest of twelve per cent per annum payable from the date of receipt of amount so collected till the date of payment.
The complainant paid the amount in the hope to get the possession of the flat within the reasonable time. It is clearly evident that the opposite party made false statement of facts about goods and services which is allotment and deliver of the possession, which is an act of misconduct, misrepresentation and deception. This act made the complainant suffer injuries and loss. The opposite party is bound to compensate the complainant for the loss suffered as enshrined by the judgments of the Honourable Supreme Court and the National Commission. The act’s objective is to protect the consumers from the exploitation.
Also Read- Orders/ Judgements – RERA Punjab
And hence following directions are issued to the opposite party
- To deliver the possession of the flat complete in all respect with Completion Certificate, subject to balance sale consideration, without any interest and penalty thereon and to execute the sale/conveyance deed in the favour of the complainant.
- To pay compensation of 15/- per sq. ft. per month of the super area from the date of which the delivery of the possession is mentioned in the agreement till the delivery of the possession.
- To pay compensation of Rs.22,000 for mental harassment and litigation.
And in case the opposite party fails to do so,
- To refund the entire amount of Rs.4,00,000 along with the compensation for financial loss at the ate of 12% per annum from the date of respective dates till the date of realization.
- To pay compensation of Rs.22,000 for mental harassment and litigation.
Also Read- Suresh Chandla vs M/S Land Twisters And Another
For case specific advice, please connect with Top Best Expert Legal Consultants Attorneys in Real Estate/Property Estate/Consumer Court and Consumer Protection Dispute/ Consumer Grievances and Complaints/RERA Lawyers Advocates in Chandigarh Panchkula Mohali Kharar Derabassi Zirakpur etc.
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