Sri Ashoke Kumar Pal, President

The case of the complainant in a nutshell  is that with the intention to construct their own house,  the complainant booked a plot of land being No:A/113 measuring 2.5 cottah for construction of a bungalow (Type B 3) at a total consideration of Rs.42,54,552/- (Rupees 11,25,000/- for land + Rs.3`1,29,552/- for Bungalow).  The complainants paid Rs.1,00,000/- (Rs.50,000/- towards application money + Rs.50,000/- towards confirmation money) on 14.06.2013 and the OP No.1 issued certificate of allotment No:145 dated 14.06.2013 in the name of “LARICA GREEN HAMLET”, Kolkata.  As per terms and conditions the OP No.1 shall hand over possession of the plot of land within 12 months and the bungalow within 18 months from the date of confirmation.  The complainants paid the entire consideration amount to Rs.11,25,000/- for land by installments on different dates and the OPs executed and registered a deed of conveyance on 22.11.2013 in respect of the said plot of land more fully described in the schedule of the petition of complaint as well as deed of conveyance dated 22.11.2013.  The complainants also paid Rs.11,000/- extra towards registration purpose.

            The complainants also paid Rs.1,50,000/- for construction (Rs.50,000/- towards application + Rs.50,000/- towards confirmation +Rs.50,000/- within 30 days of confirmation towards starting of construction work) on 24.07.2013.  On 22.11.2013 the OP No.1 also executed a separate agreement for construction of a two storied bungalow being type B3 having total built up area of 1648 Sq.ft at a total price for rs.31,29,552/-.  The OP No.1 agreed to complete the construction work within 24 months from the date of commencement of the work as per terms of the agreement dated 22.11.2013.  The complainants took Home Loan of Rs.25,00,000/- from LIC Housing Finance Ltd. for the purpose of construction of the bungalow. The complainants on August, 2020 paid the entire loan amount to the LIC Housing Finance Ltd. and by that process they had to pay total amount of Rs.27,28,365/- (Rs. 19,05,133/- as Principal +Rs.8,23,232/- as interest).

The complainants paid total amount of Rs.25,43,892/- towards construction of bungalow out of which Rs.19,05,133/- has been paid by the LIC Housing Pvt. Ltd.  The complainant had to pay service tax to the tune of Rs.48,331/- from their own source.  During the construction work the OP No.1 by letter dated 28.10.2014 intimated the complainants about the enhancement of the total construction area from 1648 Sq.ft to 1842.39 Sq.ft to which the complainants were compelled to agree to the same.  The last installment was paid on 22.12.2017 on completion of flooring of the bungalow and till then no demand was made by the Op No.1 (Developer).

After completion of the flooring of the bungalow all on a sudden from December, 2017 the construction work has been stopped by the OP.  The OPs also failed to make other amenities like street lights, children’s play area, club,   Lake, Tennis Court, Indoor games Room,   Beauty Parlour etc.  Although the OPs failed and neglected to complete the said construction of the bungalow and hand over the possession of the same, the complainants have already made payment of Rs. 37,28,223/- (Rs.11,25,000/- for cost of the land further Rs.11,000/- for registration cost and Rs.25,43,892/- towards cost of construction work and Rs.48,331/- towards service tax.  The OP No.1 by their letter dated 04.04.2019 disclosed for the first time that as the chunk of land in the project area was vested by the Government since 2013 a proceeding is pending before the Hon’ble High court, Calcutta.  But the OPs continued to take booking for construction of bungalow even in the year 2013 and also thereafter without disclosing the fact of vesting of land and pendency of proceeding before the Hon’ble High Court.  On 22.10.2020 the complainant sent a legal notice to the OPs.  In reply on 02.11.2020 the complainants were asked to make further payment to complete the bungalow within 1 month and to hand over the possession of the same.  But the OPs did not make any whisper in the said letter to provide the other amenities as assured in the colourful brochure.  The OPs neither completed the project and hand over possession thereof nor refund the amount with interest which has already been paid by the complainants and hence this case.

The OPs although filed W/V but subsequently neither appeared to file evidence on affidavit nor took part in the argument.

                                                                                           Points of Consideration

                                                         01.  Are  the complainants a consumer                                                       

                                                         02. Are the OPs guilty of deficiency in service and unfair trade practice?                                                                                                         03.Are the complainants entitled to get relieves as prayed for?

                                                                                              Decision with Reasons

Point No.1:               On perusal of the records along with documents, it appears that the complainants were willing to purchase the schedule plot of land measuring about 2.5 cottahs more fully described in the schedule of the petition of complaint and the OPs agreed to sell the same to the complainants for which the deed of conveyance dated 22.11.2013 was made by and between the parties.  The complainants paid Rs.11,25,000/- on different dates towards the total consideration amount for the land.  Therefore, the complainants are consumers as defined in Section 2(7) of the Consumer Protection Act, 2019.  As such,  point No.1 is decided in favour of the complainants and against the OPs.

Point No.2:               The complainants booked the schedule plot of land for construction of a bungalow and entered into an agreement dated 22.11.2013 with the OPs to that effect.  The complainants also made payment of the total consideration amount of Rs.11,25,000/- for the land the OPs acknowledged the receipt of the same.  On 22.11.2013 a separate agreement has been made for construction of bungalow at a consideration amount of Rs.31,29,552/- by and between the parties out of which the complainants paid Rs.25,43,892/- on different dates and the OPs acknowledged the receipt of the same.  Apart from the above, the complainants had to incur the expenses for registration of the documents and service tax etc.  Despite the payment of the full consideration amount for land by the complainants, the OPs failed and neglected to handover the possession of the schedule plot of land along with all the amenities to the complainants and to construct the bungalow thereon as per terms of the agreement dated 22.11.2013. The complainants finding no other alternative by letter dated 22.10.2020 asked the OPs to complete the bungalow within 10days along with all the amenities as assured or to refund back the amount paid by complainants with 18% interest thereon.  Therefore, it is clear from the averment of the complainants that the OPs are guilty of deficiency in service and unfair trade practice.  As such, the second point is also decided in favour of the complainants and against the OPs.

Point No.3:               The Complainants booked the schedule plot of land from the OPs and made full payment of the consideration amount for the land and part payment for the construction of the bungalow as per agreement dated 22.11.2013 but the OPs violated terms and conditions of the agreement dated 22.11.2013.  Neither the OPs handed over possession of the schedule plot of land with all the amenities as assured nor completed the construction of bungalow as per terms of the agreement dated 22.11.2013.  They also did not refund the amount of Rs.37,96,955/- with interest which they received from the complainants as per agreement dated 22.11.2013 including other expenditure for registration and service tax etc. with interest thereon.  Therefore, as the complainants did not get any positive reply from the OPs they have been compelled to  file the present case against the OPs on the reliefs sought for in the petition of complaint.  As such, there is no hesitation to hold that the complainants are entitled to get the reliefs as prayed for as the OPs did not hand over the physical possession of the scheduled plot of land along with other amenities to the complainants nor construct the bungalow as per terms of the agreement dated 22.11.2013.  The complainants failed to get service from the OPs.  On the other hand, the complainants were harassed by the OPs by various ways.  Therefore, the complainants are entitled to get the reliefs as prayed for.  Thus the third point is decided in favour of the complainants and against the OPs.

In the result, the complaint case succeeds.

Fees paid is correct.

Hence, it is,

                                    ORDERED

That the complaint case be and the same is hereby allowed on contest against the OPs with cost of Rs.25,000/- (Rupees Twenty Five Thousand).

The OPs are jointly or severally directed to hand over the peaceful possession of the schedule plot of land with all amenities as assured along with bungalow as described in the schedule of the deed of conveyance dated 22.11.2013 and agreement dated 22.11.2013 with completion certificate in favour of the complainants within 60 days from the date of passing this order.

Alternatively, the OPs are jointly or severally directed to refund the entire amount of Rs.37,96,955/- (Rupees Thirty Seven Lakhs Ninety Six Thousand Nine Hundred and Fifty Five) only along with 12 % simple interest p.a. w.e.f. 12.06.2013 (date of payment of first installment) till the date of final realization within 60 days from the date of passing this order.

The OPs are jointly or severally directed to pay compensation to the tune of Rs.5,00,000/- (Rupees Five Lakhs) only for mental pain and agony suffered by the complainants within  60 days from the date of passing this order.

The OPs are jointly or severally directed to pay litigation cost of Rs.25,000/- (Rupees Twenty Five Thousand).

The complainants are at liberty to put the order into execution after the expiry of 60 days if the orders are not complied with by the OPs within 60 days from the date of passing this order.

Let a copy of the order be supplied free of cost to the parties concerned. 

The final order will also be available in the following website www.confonet.nic.in.

Dictated and corrected by me. 

                                   (Ashoke Kumar Pal)

                                                President