RERA Panchkula Case against Omaxe Pvt Ltd

RERA Panchkula Case against Omaxe Pvt Ltd wherein interest with compensation awarded for Delay.

Let us have the case here titled as:

MADAN LAL MUTNEJA V. M/s OMAXE PVT. LTD., 28^th April, 2021

Omaxe Pvt Ltd Haryana RERA Panchkula Case

Today we are going to talk about the case of Madan Lal Mutneja v. M/s Omaxe Pvt. Ltd., 28^th April, 2021. The case was being heard through video conferencing and the advocates for the complainant side were Mr. Kailash Kumar Ahuja and for the respondent side was Mr. Manish Gupta. The case was being held at Haryana Real Estate Regulatory Authority Panchkula.

The case was regarding the possession of the villa not given to the complainants as they have paid the substantial amount for that villa but still hasn’t for the possession but later on i.e., after 8 years the builder agrees to deliver the possession of the villa but the complainant is not taking it. Now to state the facts, issues and judgement of the case it is as follows:

Also Read- Omaxe Chandigarh Extension Consumer Complaint

On the last hearing of the court both parties had sought adjournment as they were attempting to amicably settle the matter. However, today council filed for the respondent submits that settlement could not be arrived at. Factual position in present complaint is that complainant purchased endorsement rights of a villa in the project of the respondent company on 29^th June, 2006. Complainant has paid 29,18,520/- against total sale consideration of 29,15,140/-.
The deemed date of delivery of possession of the said unit was January 2009 but after a delay of twelve years complainant was offered possession of the apartment on 19^th March, 2021. Learned council for the respondent submitted that the completion certificate for the project was obtained on 4^th March, 2017 and accordingly the complaint was offered possession on 17^th May, 2017. At that time in 2017 an amount of 5,23,274/- was outstanding and due to be paid by the complainant but he didn’t come forward, to pay the balance amount and take possession and on account of further delay in making payments delay interest was further added on April, 2019 after a gap of two years complainant made a payment of 4,93,000/- out of the demand. Respondent further submits that project was complete and possession can be handed over on payment of due amount.

Also Read- Execution Case Haryana RERA Panchkula Authority

Prima facie authority observes that the offer of possession in 2017 was a good offer as completion certificate was obtained and no unreasonable demands were raised by the respondent. Equity demands that the complainant should have come forward and taken possession on payment of balance dues. However, since a delay of more than 8 years has been caused in delivery of possession, complainant was entitled delay interest applicable for the period January, 2009 to 2017 as per the principles laid down by this authority in complaint no. 118 of 2018. Madhu Sareen v. B.P.T.P Ltd the authority considers it just and fair that rights and liabilities of both parties were settled as in 2017.
Authority directs respondent to handover possession immediately along with fresh offer of possession and fresh statement of accounts within 30 days from uploading of this order. the delay compensation payable to the complainant should be adjusted from the balance amount payable on part of the complainant to respondent.

Also Read- Search Appeal Judgements – Haryana Real Estate Regulatory

Remedies under Civil, Criminal and Consumer Laws against Builder/Developer

A property buyer, who fails to get the possession of his property on time, can resort to several provisions under India’s civil, criminal and consumer laws, to take action against the developer

A property buyer, who capitalizes his hard-earned money in buying a home and does not get its possession on time, not only fails to get a roof over his/her head but also ends up losing money, in the form of EMIs on the home loan and paying for a hired accommodation. Moreover, the buyer may also have to wage a long and tedious legal battle to get the justice.

Also Read- Consumer Complaint Omaxe Chandigarh Extension

Legal remedies

If possession is not delivered on time, a purchaser can:

First send a legal notice to the builder, claiming the refund of the amounts paid along with interest and/or damages.
“The buyer can also file a consumer complaint for ‘deficiency in service’ as defined under the Consumer Protection Act, 1986 against the builder,”
The flat purchaser is required to file a written complaint before the appropriate consumer dispute redressal forum set up under the act, depending on the value of the property, or the amount of damage he has suffered.
Any dispute over Rs 20 lakhs can be directly filed before the State Commission.
Any dispute over Rs 1 crore can be filed before the National Commission in New Delhi.
Any dispute for a value lower than Rs 20 lakhs has to be filed in the District Commission.
A property purchaser can also file a regular suit before a court of competent jurisdiction, for damages or specific performance, under the Indian Contract Act, 1872.
If there is fraud involved–for example, if the builder knew from the beginning that he would not be able to deliver possession within the stipulated time and by some misrepresentation, induced the purchaser to book the flat – civil and criminal proceedings can be initiated.

Type of damage and relief the buyer can get through legal course

Also Read- No Oc Without Cc – Punjab Rera

Claim the money required to buy alternate accommodation at the ongoing market value in the respective area.
The purchaser can also claim the money given to the builder.
Claim interest on the payment made till date.
If the purchaser/ complainant is buying the property for personal use, he can file a complaint seeking relief in the Consumer Dispute Redressal Commission.
You can also file a complaint to RERA (Real Estate Regulatory Authority of your respective state claiming your refund along with the interest or damages. RERA is a dedicated court for the resolution of disputes arising in the real estate sector. Established in 2016, the RERA Act is still in its development phase. With its appellate body, RERA Appellate Tribunal, its jurisdiction lies in all real estate matters. The complaints under RERA can be filed for any claim amount but in the cases where the occupancy certificate has already been granted, then a complaint cannot be filed. It allows the buyers to get the total Refund of payment with interest or Monthly interest till handing over of possession by the builder. RERA Act clears out each case typically within 60 days.
National Company Law Tribunal (NCLT): In case the builder is unable to continue or finish the real estate project, insolvency proceedings can be initiated by the buyer under the insolvency and Bankruptcy Code established in 2016. This well-established law with its appellate body National Company Law Appellate Tribunal (NCLAT) solves cases for the registered companies having a bad financial condition with a disputed amount of above Rs. 1 lakh. It compensates the company owner with the dissolution of the company and enables them to claim their share upon liquidation. The average time of judgment (as per the act) taken to resolve a case is typically within 9 to 12 months.
If the purchaser/ complainant is sure to get possession of the flat in a few months or years, he can claim compensation for the money that he will spend as rent on an alternate accommodation. This will be applicable if he is a first-time home purchaser, or if his building is being redeveloped.
The purchaser can claim damages for loss of opportunity caused to the purchaser, had he invested his money elsewhere.
The purchaser can also claim litigation costs if the buyer has to approach the courts for legal remedies.

CONCLUSION

The judgement decided in this case was at all reasonable and justified from all the legal points and the ways that what all offences can be incurred according to my research and analysis which have been stated above. But the fraud committed by the respondent was not at all justified because the money that the complainant is giving is his hard earned money and the savings by which they are investing it in buying the villa but then also the company doesn’t understand it which they have to pay the penalty and compensation for it.

Also Read- Search Judgements – Haryana Real Estate Regulatory Authority

This post is written by Sammyak Jain.

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