Chandigarh

DF-II

CC/488/2020

Purnima Kapur - Complainant(s)

Versus

DLF Universal Ltd - Opp.Party(s)

Narender Yadav & Vineet Yadav

05 Jul 2021

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

 

Consumer Complaint  No	:	488 of 2020
Date  of  Institution	:	28.09.2020
Date   of   Decision	:	05.07.2021

 

 

 

 

1]  Purnima Kapur w/o Sh.Amit Kapur,

2]  Amit Kapur s/o Sh.Om Parkash Kapur,

Both R/o Al Rostamani Tower A, Flat No.1003, First Trade Center, Dubai, UAE, through SPA Holder Nand Kishore Anand, R/o BA 289, Tagore Garden, New Delhi 110027

 

             …..Complainant

Versus

1]  DLF Universal Limited (earlier Known as DLF India Limited), having its Registered Office at Shopping Mall, 3^rd Floor, Arjun Marg, DLF City, Phase-I, Gurgaon 122002, Haryana, through its Chairman/Managing Director/Director/Authorised Signatory.

2]  DLF Universal Limited (earlier Known as DLF India Limited), DLF Hyde Park Estate Sale Office, Chandigarh Siswan Road, Mullanpur Barrier, Mullanpur, District SAS Nagar, Punjab (earlier Address:- SCO No.190-191-192, Sector 8-C, Chandigarh 160009 through its Chairman/Managing Director/Director/ Authorized Signatory. 

    ….. Opposite Parties 

 

BEFORE:  SH.RAJAN DEWAN             PRESIDENT

         SMT.PRITI MALHOTRA             MEMBER

                                SH.B.M.SHARMA                    MEMBER                         

 

 

Argued by :-  Sh.Narender Yadav, Adv. for the complainant.

                 Sh.Kunal Dawar, Adv. for OPs

 

 

PER B.M.SHARMA, MEMBER

 

         Briefly stated, the complainant booked a flat in DLF Hyde Park Project of OPs at Mullanpur New Chandigarh and availed construction linked plan.  It is averred that the total price of the unit was fixed Rs.77,36,860/- for saleable area of 1881 sq. ft. and the complainants till now paid an amount of Rs.97,88,260.80/- including contingent VAT amount of Rs.1,23,804/- to the OPs for 1900 sq. ft.
The OPs entered into an agreement with complainants called Independent Floor Buyers Agreement vide agreement dated 22.2.2013 whereby a unit No.R2-E 808 FF (First Floor with parking No.P-1F was allotted to the complainant (Ann.C-2).  It is also averred that the OP No.1 vide letter dated 15.2.2016 offered the physical possession of the unit while admitting the fact of receipt of occupation certificate for independent floor and asked complainants to deposit Rs.20,68,712.80/- within one month with condition that non-submission of payment as outlined in the letter within 30 days of final statement of account would attract interest “Holding Charges” @Rs.10/- per sq. feet per month as per terms & conditions of Clause 13 of Floor Buyer Agreement.  It is stated that OP No.1 Builder vide letter dated 15.2.2016 (Ann.C-3) with a subject handing over the independent floor asked the complainants to deposit Contingent Deposit of Vat @Rs.14.55 per sq. feet i.e. Rs.1,23,804/- which was an arbitrary & illegal demand. It is submitted that the complainants got the independent floor registered in the name of complainants on 24.06.2016 (conveyance deed as Ann.C-4).  It is also submitted that the OP-Builder demanded the Rs. 1,23,804/- for contingent deposit of VAT @ Rs. 65.16/- per sq ft which was not mentioned in agreement and in schedule of payments decided by the OP-Builder unilaterally while admitting the fact that there is lot of ambiguity about the principles and methods of calculation of VAT paid under composition scheme. Further pleaded that OP-Builder admitted the fact that same has to be paid in accordance with the scheme to be notified by the Punjab Govt. It is also submitted that the OP-Builder is not imposing the VAT as per composition scheme of the Punjab Govt. nor asked the Builders to charge the VAT @ Rs. 65.16 per sq ft from the buyers and the same is decided by the OP-Builder unilaterally to extort the money from the allottees with a purpose to use this money in their other projects.  It is pleaded that the Hon'ble Supreme Court and various Hon'ble Consumer Commissions and District Forum held that Govt. and Builders cannot ask the VAT charges after completion of certificate and no such law or notification which state that VAT charges has to be paid by the buyers.

         It is stated that the complainants sent number of emails (Ann.C-5) to the OP-Bui1der asking the OP-Bui1der to refund of the contingent deposit of VAT amount and it has been 18 months since the amount was deposited by the complainants and further, the complainants asked for the receipt if the amount had been deposited with the government but the OP Builder neither sent the receipt nor refunded the amount with interest.  It is also stated that the complainants also came to know from other allottees that the OP Builder has not supplied the receipt of Contingent deposit of VAT to the other allottees also, which proves unfair trade practice adopted by the OPs by usurping the hard earned money of complainants and other allottees and further not depositing the same to government and further earning huge profits as interest on the same by keeping it in bank. Hence, this complaint has been filed alleging the said act & conduct of the OPs as gross deficiency in service and unfair trade practice.

 

2]       The OPs No.1 & 2 have filed reply and while admitting the factual matrix of the case, stated that all the demand raised in FSA are as per Agreement executed in 22/2/2013 by the parties & at this stage complainant breaching the said agreement & the same is not permissible in law.  It is stated that each and every payment has been fully explained in agreement also in final statement of account issued long back in 15.2.2016.  It is pleaded that the amount has been raised and collected by clearly says the contingent VAT and by giving the reference of Hon’ble SC in FSA.  It is denied that OPs have committed any deficiency in service or have engaged in unfair trade practice. It is submitted that in the instant case the complainant agreed to pay taxes in terms of the agreement and there is no deficiency in service or unfair trade practice on the part of OPs. Denying other allegations, the OPs have prayed for dismissal of the complaint. 

3]       Rejoinder has also been filed by the complainants thereby reiterating the assertions as made in the complaint and controverting that of the reply filed by OPs.

4]       Parties led evidence in support of their contention.

5]       We have heard the ld.Counsel for the parties and have gone through entire documents on record including written arguments.

6]       After thorough perusal of documents placed on record, we are of the opinion that the OP-Builder demanding huge amount of Contingent deposit of VAT when there is neither any such obligation imposed by the Government nor any communication has been made by the competent authority, is unlawful. Demanding such money in anticipation based on an hypothetical presumption that there may be such financial obligation in future, amounts to malpractice showing deficiency in service on the part of OPs. There is no document on record to show that the OP Builder is well within his right to ask the Contingent deposit of VAT.  The OP Builder asking payment of VAT, as a part of his bargain as a pre-condition for handing over the possession of the flat, clearly indicates use of coercive method to compel the consumer/complainants to pay the huge amount of contingent deposit of VAT, is highly condemnable. The request of the complainants for refund of the said deposit i.e. Contingent deposit of VAT or the receipt in case the said amount has been deposited with the Government, has not been acceded to by the OPs.  Therefore, the deficiency in service as well as unfair trade practice resorted to by OPs, is clearly established, which not only caused financial loss to the complainants, but also caused them immense harassment.     

7]       In the light of above observations, we are of the considered view that the Opposite Parties are found deficient in rendering proper service to the complainants and having indulged in unfair trade practice. Hence, the present complaint of the Complainants deserves to succeed against the Opposite Parties.  Accordingly, the complaint stands allowed with direction to OPs to refund an amount of Rs.1,23,804/- along with interest @10% p.a. from the date of deposit till its payment, as the OPs are themselves imposing interest “Holding Charges” @Rs.10/- per sq. Ft. per month as per Clause 13 of the Floor Buyer Agreement.  The OPs are also directed to pay an amount of Rs.1,50,000/- to the complainants towards compensation for causing them mental agony and harassment, along with litigation cost of Rs.50,000/-.

         The above said order shall be complied with by the Opposite Parties within a period of 30 days from the date of receipt of its copy, failing which they shall be liable to pay additional cost of Rs.25,000/- apart from the above awarded amount.

        The certified copy of this order be sent to the parties free of charge, after which the file be consigned.

Announced                                                             

5^th July, 2021                                                            sd/-

                                      (RAJAN DEWAN)

PRESIDENT

 

Sd/-

(PRITI MALHOTRA)

MEMBER

 

 

Sd/-

 (B.M.SHARMA)

MEMBER