Uttar Pradesh

StateCommission

CC/40/2022

Krishna Devi - Complainant(s)

Versus

Greater Noida Industrial Development Aouthority - Opp.Party(s)

Divyansh Bhatt And Shashwat Singh

15 Sep 2022

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION, UP
C-1 Vikrant Khand 1 (Near Shaheed Path), Gomti Nagar Lucknow-226010
 
Complaint Case No. CC/40/2022
( Date of Filing : 11 Apr 2022 )
 
1. Krishna Devi
Through Sri Suresh Singh Rawat POA Holder Of the Complainnant R/o 1620 DDA Janta Flat GTB Enclave Dilshad Garden Delhi
...........Complainant(s)
Versus
1. Greater Noida Industrial Development Aouthority
Plot No. 1 Knowledge Park 04 Greater Noida Gautam Budhh Nagar
............Opp.Party(s)
 
BEFORE: 
 HON'BLE MR. JUSTICE ASHOK KUMAR PRESIDENT
 HON'BLE MR. Rajendra Singh JUDICIAL MEMBER
 
PRESENT:
 
Dated : 15 Sep 2022
Final Order / Judgement

Reserved

State Consumer Disputes Redressal Commission

U.P. Lucknow.

Complaint no. 40 of 2022

Krishna Devi R/o 1620, DDA Janta Flats

GTB Enclave Dilshad Garden, Delhi-93          ...Complainant.

                                                     Versus

Greater NOIDA Industrial Development Authority

Plot No.01, Knowledge Park-04, Greater Noida,

Gautam Budh Nagar, Uttar Pradesh-201308

Through Chairman                                      ...Opposite Party.

Before:

Hon’ble Mr. Justice Ashok Kumar, President.

Hon’ble Mr. Rajendra Singh, Member

For the Complainant  :   Sri Divyanshu Bhatt and Sri Shashwat  

                                                Singh,  Advocate.

For the Opposite Party : Sri Ajai Kumar Gupta and

                                                Sri Ravindra Kumar Bhati, Advocate

Dated :  29 -09-2022

JUDGMENT

Per: Honbel Member Mr. Rajendra Singh: Heard Sri Divyanshu Bhatt and Sri Shashwat Singh, learned Counsel for the complainant  and Sri Ajai Kumar Gupta and Sri Ravindra Kumar Bhati, learned Counsel for the opposite party.

The instant complaint has been filed under Section-47 read with (1)(b)(ii) of the Consumer Protection Act 2019 by Krishna Devi against the opposite party Greater NOIDA Industrial Development Authority with the following prayers:-

Facts of the case stated in brief are that the complainant came across an advertisement of the Development Authority offering a new housing project in the name and style of  “Scheme BHS 17 Omicron 1”. The said project was a close match to the complainant’s requirements. Therefore, the complainant in the year 2013 contacted the officials of the Development Authority and on the promises, proposals and guarantees, the complainant booked a Flat measuring 58 sq. ft. for which an amount of Rs.2,57,000/- has been paid by the complainant to the opposite party as registration amount alongwith the booking request application.

It has been stated by the complainant in her complaint that she has been allotted a unit bearing No. 412/B, Tower B of Sector  Omicron-1 in the draw held on 15-01-2014 vide Allotment-cum-Allocation letter dated 29-01-2014. After the allotment the complainant was asked to deposit the remaining amount of Rs.22,68,700/- on or before 29-04-2014 i.e. within the next three months. The complainant made the requisite payment by Bank D.D. No. 093025 dated 29-04-2014.

It has been further stated by the complainant in her complaint that for payment of the huge amount she availed the home loan facility under the SBI-Max Gain Home Loan for an amount of Rs.20,00,000/- from the State Bank of India, Delhi RACPC Branch and the Arrangement Letter dated 29-04-2014 has been issued by the Bank and the rate of interest is 10.1%. The opposite party vide Offer letter dated 04-07-2019 demanded additional charges from the complainant for the purposes of execution of the lease deed and completion of the remaining formalities in order to take the possession of the allotted property. Subsequently when the complainant visited the site of the project to inspect the allotted property, she found that the allotted property had been allotted to Delhi Metro Rail Corporation. The complainant noticed that in Tower B on 4th floor, all the flats were registered to DMRC, including the allotted property of the complainant. The complainant alleges that there was a clear case of mismanagement or fraud on the part of the opposite party, much to the prpejudice of the complainant. The complainant was offered to take another allotted property, in lieu of the same. There were several reasons for which the complainant had chosen the allotted property specifically, including the location, spacing and design of the same, among others.  

It has been alleged by the complainant in her complaint that having been left with no other alternative due to ill-motivated and fraudulent actions of the opposite party, the complainant was constrained to withdraw its application vide its application 15-10-2019, which was filed online for cancellation of the allotment and withdrawing the money deposited alongwith the applicable interest. Thereafter, after several follow-ups, and running from pillar to post, the complainant was refunded an amount nof Rs.15,08,873/- and Rs.15,93,237/- vide cheque dated 09-01-2020 and 25-02-2020 respectively, which included the money that was paid to the opposite party alongwith interst computed at 4% per annum. Therefore, the total amount returned to the complainant till date is Rs.31,02,110/-.  

It is stated by the complainant in her complaint that the rate of interest at which a refund shall be provided to the consumer in case of default on the Authority’s part has neither been provided in the brochure issued by the opposite party; nor the Allocation letter dated 29-01-2014 issued by the opposite party. The brochure and the allocation letter are the only two documents where such a clause ought to have been provided. The complainant in no way falls within the ambit of the force majeure clause as there was no situation that was beyond the control of the Authority and therefore it is a clear case of ‘unfair contract’. The cheque was provided to the complainant only in March,2020 which was after a period of 5 months from the date of application of withdrawal.

It has been further stated by the complainant in her complaint that she filed a case before RERA Authority seeking that the complainant be granted an interest equivalent to the interest that it has incurred in paying the complete amount to the opposite party for purchasing the allotted property. The said complaint has been dismissed by the RERA Authority vide order dated 16-12-2020 on the ground that the complainant does not fall within the definition of the term “Allottee” for the purposes of Section 18 and therefore, the complainant cannot be granted any relief or orders in terms of Section 18 of the UP RERA Act.  

The complainant further stated in the complaint that the complainant has accepted the amount paid to her at the interest rate of 4% per annum but the acceptance of that amount cannot be treated as a waiver of her right to get relief from this Commission. The complainant was the following reliefs:

  1. The development authority be directed to pay the equivalent to the difference between the refund amount at a rate of 4% as given by the Development Authority and the refund amount that ought to be computable  at the applicable rate of 10.1% per annum interest rate.
  2. The Hon’ble state commission may pass any other order or direction, which this Hon’ble commission may deem just and proper under the circumstances the case, may also be passed in favour of complainant.

The opposite party has submitted his written statement stating that the complaint is based on wrong facts and this commission has no jurisdiction to hear the complainant’s case. The subject matter of the case is situated in Gautam Budh Nagar so the present case should have been filed before the learned District Forum Gautam Budh Nagar. The complainant had chosen the alternative remedy for the refund of his amount deposited between 25.12.2020 and 07.01.2021 amounting to Rs.1,593,247/-and he accepted this amount with interest so now there is no dispute between the parties. The consideration is Rs.50 lakhs which is less than Rs.50 lakhs and this court has no jurisdiction. The complaint case is time barred. The cause of action arose in March 2020 and the present complaint has been filed on 11.04.22. The whole amount of the complainant, Rs.1,593,247/– has been returned to the complainant on the basis of compromise. The complainant has also filed a case before RERA which was dismissed on 16th December 2020. No cause of action has accrued to the complainant and he is not entitled to any relief from this Hon’ble State Commission, so the complaint is liable to be dismissed.

We have heard the learned counsel for the complainant Mr. Divyanshu Bhatt  and  Mr. Shashwat Singh and learned counsel for the opposite party Mr Ajay Kumar Gupta and Mr. Ravindra Kumar Bhati. We have also perused the pleadings, evidence and documents on record.

The present complaint is based on unfair contract which also includes unfair trade practice by the opposite party. Here the matter either may be valued at consideration paid or value of the goods. Except these considerations it may also be seen that it is related to unfair contract under the Consumer Protection Act 2019. So the state commission has jurisdiction to try this case.

The complainant has taken loans from the State Bank of India at a rate of 10.1% per annum. But the refund was made at a rate of 4% interest per annum which is malicious and illegal and also comes under unfair trade practice and unfair trade contract. As per the allotment cum allocation letter dated 29.01.2014 the allotment of flat was to be given to the allottee on  a lease of 90 years and lease rent shall be payable in lump sum at the rate of 10% of the premium of the plot before execution of lease deed and possession. Another condition under this allotment letter is “allotment money shall be paid within 90 days from the date of allotment. In case the allottee fails to deposit the allotment money within 90 days from date of allotment, mentioned as the due date of deposit above, the allotment will be liable for cancellation and the money deposited till the date of cancellation will be forfeited.” The condition of the allotment no doubt, unilateral and it will not bind the allottee.

We have also seen the brochure under which clause N says “execution of lease deed and possession – the possession is likely to be offered to the allottees within a period of three years from the date of issue of allotment letter. The allottee will be required to enter into legal documentation (execution and registration of lease deed) and take possession of the multistoried flat within the period of 60 days from the date of offer of possession/intimation to do so. In the event of failure to do so, allottee shall be liable to pay admin charges at the rate of 1% of the total premium for the extension of one year from the due date given to the execution of legal documents. If the allottee fails to execute legal documents within the extended time, action of cancellation of allotment and forfeiture of deposited money shall be taken.”

On the one side hard condition has been imposed upon the allottee and on the other side the opposite party failed to deliver the possession within stipulated time. Such unilateral conditions and terms are not acceptable under rule of law. First we see that the allotment cum allocation letter is of 29.01.2014 . According to it the possession was to be handed over on 28.01.2017. The opposite party vide offer letter dated 04.07.2019 demanded additional charges from the complainant for the purposes of execution of the lease deed and completion of the remaining formalities in order to take the possession of the allotted property. Thereafter the complainant visited the site and to her utter surprise found that her allotted unit had already been allotted to Delhi Metrorail Corporation. Under what circumstances the flat allotted to the complainant has been allotted to DMRC? The counsel of the opposite party says that there was a letter issued to the complainant regarding the allotment of her allotted flat to DMRC, no reply forwarded in this regard to the complainant and only it is stated that the DMRC wanted flats for their employers in the bulk therefore it has been allotted to DMRC. Thus it is a clear violation of the terms and condition of the contract and that too unilaterally. Whether any power has been given by the complainant to the opposite party to transfer the  allotted flat to DMRC? It is highhandedness and HOOGALISM on the part of opposite party.

The opposite party has also raised a question that the complainant went to the RERA so this commission has no jurisdiction to try this matter.  

The Supreme court has answered the above-mentioned question in a judgment dated 2nd November 2020, passed by the Supreme Court of India in the case of  (Civil Appeal No. 3581-3590 of 2020), the Supreme Court held that the redressal mechanism/provisions under the Real Estate (Regulation and Development) Act 2016 (RERA) do not act as a bar to complaints under the Consumer Protection Act 1986 (CP Act). The principles laid down in this judgment by the Supreme Court, find a place in a range of earlier series of decisions passed by various High Courts as well as the National Consumer Disputes Redressal Commission (NCDRC) which has stated that allottees/homebuyers are well within their rights to avail remedies under the CP Act as well as RERA and even the Insolvency and Bankruptcy Code 2016 (IBC).

This judgment has definitely explained that the allottees have the freedom to choose among RERA and the Consumer Forum to litigate for their rights in a land project. As the land business keeps on wrestling with the uncommon difficulties introduced by steadily developing liquidity emergencies and the current pandemic, the postponed ventures should plan for longer fights in court by virtue of conceivable commencement of new cases before RERA or the Consumer Forum. This judgment also paves a path for ending the dominance of developers over buyers by virtue of money power in litigation matters.

In order to make a better decision, the author has provided detailed differences between both acts.

Difference between Consumer Court and RERA

Consumer Court

RERA

Only registered purchasers and allottees can file complaints.
Registered agency/purchaser here means ‘any voluntary consumer association registered under the Companies Act, 1956 or under any other law for the time being in force.
On the other hand, any of the agencies reflects the unregistered association which cannot come within Section 2(7)(i)[1] of the act hence cannot file a complaint.

Aggrieved persons can file complaints under Section 31 (1) of the RERA Act.
Section 31. (1) – Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter allottee or real estate agent, as the case may be. For the purpose of this subsection, persons shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force. The word person is defined under Section 2 (zg)[2].

A complaint before Consumer Court needs to be filed on plain paper with documentary evidence.

There is a specified format for filing a complaint before RERA. Every state’s RERA official website will have its complaint section and the buyer has to fill in the requisite details in the form prescribed.

In the case of a consumer complaint, you have to file the complaint depending on the pecuniary limits. District commission can entertain complaints upto Rs. 1 crore and state commissions can entertain complaints only between Rs 1 crore and up to Rs 10 crore;
In case the value of the property is more than INR 10 crore then you will have to approach NCDRC.

You can file a complaint before the regulatory authority of the state where your property is situated. There are no pecuniary limits while filing a claim under RERA.

The Central Consumer Protection Authority (CCPA) has an investigation wing, headed by a Director-General, which may conduct an inquiry or investigation into consumer law violations, as given under Section 15 (1)[3] of Consumer Protection Act 2019.
The CCPA has been granted wide powers to take suo-moto actions, recall products, order reimbursement of the price of goods/services, cancel licenses and file class-action suits if a consumer complaint affects more than 1 (one) individual.

Investigations can be conducted on a complaint by a buyer or suo moto against the builder. Section 35(1)[4] of the Act empowers the Real Estate Regulatory Authority to make an inquiry and investigate in relation to the promoter, allottee or the real estate agent, as the case may be. Section 35(1) of the Act provides that the Real Estate Regulatory Authority can either suo moto or on a complaint, initiate any inquiry and investigation into allegations against the promoter, allottee or the real estate agent, as the case may be. It is at the discretion of the Real Estate Regulatory Authority to appoint one or more persons to make an inquiry in relation to the affairs of the promoter, allottee or the real estate agent, as the case may be.

Under Section 41, any person aggrieved by an order made by the District Commission may prefer an appeal against such order to the State Commission on the grounds of facts or law within a period of forty-five days from the date of the order, in such form and manner, as may be prescribed.
Under Section 51 (1) Any person aggrieved by an order made by the State Commission in the exercise of its powers conferred by sub-clause (i) or (ii) of clause (a) of sub-section (1) of Section 47 may prefer an appeal against such order to the National Commission within a period of thirty days from the date of the order in such form and manner as may be prescribed: Provided that the National Commission shall not entertain the appeal after the expiry of the said period of thirty days unless it is satisfied that there was sufficient cause for not filing it within that period.
This implies that the finality of orders is faster under Consumer Court.

Under Section 43(5)[5] of the RERA Act, 2016 any person aggrieved by an order passed by the Real Estate Regulatory Authority (RERA) can file an appeal. Such an appeal must state the grounds of fact and law on the basis of which the RERA order is challenged.
As stated in Section 44(2)[6] of the Act, the Appeal must be heard and disposed of within sixty days of filing. If this time limit is exceeded, the Real Estate Appellate Tribunal (REAT) will have to give reasons to justify the delay. Thus, the Real Estate Appellate Tribunal is under a statutory duty to dispose of cases in a time-bound manner and not keep them pending.
Under Section 58(1), any person aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court, within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified in Section 100 of the Code of Civil Procedure, 1908:Provided that the High Court may entertain the appeal after the expiry of the said period of sixty days if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

RERA does not bar remedies under Consumer Protection Act

An appeal was preferred by Imperia Structures  ("Builders/Developers/Appellant") in the Hon'ble Supreme Court against an order passed by National Consumer Dispute Redressal Commission ("NCDRC") with regard to complaints made by homebuyers/allottees. The homebuyers, collectively, had approached NCDRC and filed a complaint under the Consumer Protection Act, 1986 for unfair trade practice and deficiency in services owing to delay in handing over of possession of the concerned property/apartments.

Further, Imperia Structures challenged the jurisdiction of NCDRC. They put forth the issue that homebuyers/allottees have booked and bought the property/apartment for commercial purposes and hence, the said homebuyers would not qualify as consumers within the definition imparted under Section 2(d) of the Consumer Protection Act. However, the NCDRC accepted the complaint filed collectively by homebuyers and vide order dated September 12, 2018 directed Respondents (i.e., builders/developer company) to return the amount paid by homebuyers along with litigation costs i.e., 50,000 and 9% interest per annum.

Consequently, the developers/builders approached and appealed against the order dated September 12, 2018 passed by NCDRC in the Hon'ble Supreme Court. They contended that as the said project is registered under the provision of The Real Estate (Regulation and Development) Act, 2016 ("RERA") and lacks jurisdiction under Section 79

Judgment and analysis

 
 
[HON'BLE MR. JUSTICE ASHOK KUMAR]
PRESIDENT
 
 
[HON'BLE MR. Rajendra Singh]
JUDICIAL MEMBER
 

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