DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

Consumer Complaint No.510 of 2017

                                                 Date of institution:  17.07.2017                                                     Date of decision   :  08.08.2018

Harbhajan Singh son of Gulzara Singh, resident of VPO Moila Wahidpur, Tehsil Garhshankar, District Hoshiarpur, Punjab.

…….Complainant

Versus

1.     M/s. Sky Rock City Welfare Society (Regd.), Banur Road, Back side C.G.C. College, Landran, Sector 111-112, Mohali Punjab, through its President/Authorised signatory. (Now in Central Jail, Patiala as per orders dated 27.03.2017 passed by the Hon’ble State Consumer Disputes Redressal Commission, Punjab, Chandigarh), through Superintendent Jail Patiala, Punjab.

2.     Mr. Navjeet Singh s/o Daljit Singh, President of the Sky Rock City Welfare Society (Regd.), resident of House No.67, Sector 69, Mohali, Punjab (now in Central Jail, Patiala as per orders dated 27.03.2017 passed by the Hon’ble State Consumer Disputes Redressal Commission, Punjab, Chandigarh), through Superintendent Jail Patiala, Punjab.

3.     Greater Mohali Area Development Authority (GMADA) through its Chief Administrator, PUDA Bhawan, Sector 62, SAS Nagar, Mohali.

……..Opposite Parties.

Complaint under Section 12 of

the Consumer Protection Act.

Quorum:    Shri G.K. Dhir, President,

                Shri Amrinder Singh Sidhu, Member

Present:     Shri P.P. Singh, counsel for complainant.

                OP No.1 and 2 ex-parte.

                Shri G.S. Arshi, counsel for OP No.3.

Order by :-  Shri G.K. Dhir, President.

Order

               Complainant on being allured by the publicity made by OP No.1 through newspapers, agreed to purchase residential plot in Sector 111-112, Mohali in the project named and styled as Sky Rock City Welfare Society at village Behrampur, District SAS Nagar, but after becoming member of OP No.1 society.  Cost of the plot was Rs.11,00,000/-  and area of the same was 100 sq. yard. Rs.10,000/- were deposited by complainant with OP No.1 on 20.07.2011 for becoming member of it. Terms and conditions of payment/possession not provided to complainant at the time of booking of the plot. Complainant claims to have made the following payments:

                As per Clause-13 of the agreement, possession was to be delivered within 36 months from the date of allotment subject to force majeure circumstances and reasons beyond control of builder. Clause-3 of provisional allotment letter provides for extension of time for delivery of possession on account of force majeure circumstances. However, intimation regarding same not given to complainant, even after receipt of full payment of agreed sale consideration alongwith EDC/IDC charges. Time frame for delivery of possession was three years from the date of allotment letter dated 31.03.2014 and said period of 31.03.2017 even had expired, but despite that signs of delivery or of offer of possession not there at all because no construction work on the spot carried out at all. OP No.1 claimed as if project is approved by PUDA and the same assertion gets support from press note published by GMADA (OP No.3). Even GMADA has approached SSP, Mohali for registration of criminal case under Section 3 (1) (2), 4, 5 (1) of PAPRA Act, 1995 and Section 420 IPC for cheating general public because amount has been collected without act of developing the site. No development work has been carried on the spot till date, is a fact borne from snapped recent photographs of the site. OP No.1 is under obligation to carry out external development works at site including work of construction of roads, road system, water supply, sewerage, drainage and electricity connections etc., but nothing of such sort done on the spot. OP No.1 also failed to carry out both external and internal development works till date. Area has not been made fully fit for human habitation by providing basic facilities and amenities. OPs were aware since beginning about non compliance of provisions of PAPRA Act and the rules framed thereunder and also to the fact that they will not be in a position to deliver possession within stipulated period and as such it is claimed that OPs have cheated the complainant. It is claimed that OPs have adopted unfair trade practice and as such this complaint filed for seeking delivery of physical possession of the fully developed residential plot. Interest @ 18% per annum on the deposited amounts with effect from 31.03.2017 till handing over physical possession of plot is sought. In the alternative, prayer made for refund of the amount of Rs.15,90,000/- with interest @ 18% per annum from the date of deposit till realisation. Compensation for mental harassment and agony of Rs.3.00 lakhs and litigation expenses of Rs.35,000/- more claimed.

2.             OP No.1 and 2 are ex-parte in this case.  OP No.3 filed reply by claiming inter alia as if no relationship of consumer and service provider exists between complainant and OP No.3; complainant has no locus standi and cause of action as well as complaint bad due to mis joinder and non joinder of necessary parties. All averments of complaint regarding transactions between complainant and OP No.1 and 2 denied for want of knowledge, but by admitting that office of OP No.1 has been sealed. Admittedly licence to OP No.1 was issued on 06.05.2014 and that public notice was given by OP No.3 through The Tribune dated 18.02.2017 for making general public aware of the conduct of OP No.1. Through that public notice, general public was made aware as to how OP No.1 cheated the general public by booking flats/plots in excess of available one. After receipt of number of complaints against OP No.1, meeting with representative of OP No.1 society and those complainants was held. In that meeting, decision was taken that allotment letters to be issued to those 10 members who have deposited 90% payment with the society within one week. Out of remaining 86 plots, allotment letters were ordered to be issued to those members who have deposited 90% payment on first come first served basis. Plot numbers alongwith description of the sector was also to be intimated to the allottees as per approved lay out plan. Those members aspiring for refund of deposited amount, were given option to get the refund as per terms and conditions of the agreement with the society on the basis of first come first served basis.  A committee under the Chairmanship of Superintending Engineer, GMADA was to inspect the colony in question and thereafter submit the report regarding development works of colony within a period of 15 days. That committee submitted report vide letter No.959 dated 18.02.2016. As per report of the committee, OP No.1 has not got service plans approved from the competent authority. Further as per that report, a building of CGC Landran was existing on the land where plots were carved out as per approved lay out plan. Although lines of water supply, sewer and storm sewer were laid in some parts of colony, but road gullies regarding the same not constructed. Arrangement for disposal of sewer and storm sewer at the site was not made till date as per that report. OP No.1 society was informed about these irregularities through various letters from time to time. OP No.1 society was called upon to respond to the queries put to it and thereafter its representative was called for personal hearing for furnishing information regarding number of members of society; list of those members, who deposited 90% amount; number of members to whom allotment letters issued and number of members to whom possession delivered and also of number of members to whom possession not delivered. No satisfactory response to these various queries was submitted. OP No.1 gave list of total 350 members registered with the society. As per list, plots of different sizes allotted to 170 members, but refund of deposited amount took place in favour of 96 members. Complete particulars were not disclosed in the list submitted by OP No.1. After grant of colony licence, OP No.1 society was required to acquire ownership of area of the colony and even to get consent letters of the land owners, but it failed to do so.  Thereafter request was sent to worthy Deputy Commissioner and SDM as well as Tehsildar, SAS Nagar for calling upon them to stop registration of sale deeds regarding plots/flats/showrooms/booths by OP No.1 society in favour of its customers. Even Estate Officer (Regulatory) GMADA made complaint dated 08.02.2017 with Senior Superintendent of Police, SAS Nagar for registration of FIR under Section 420 IPC. Other averments of the complaint denied.

3.             Complainant to prove his case tendered in evidence his affidavit Ex.CW-1/1 alongwith documents Ex.C-1 to Ex.C-7 and thereafter closed evidence.  Counsel for OP No.3 tendered in evidence affidavit Ex.OP-3/1 of Shri Meetinder Singh Mann, District Town Planner alongwith documents Ex.OP-3/2 to Ex.OP-3/4 and thereafter closed evidence.

4.             Written arguments not submitted by any of the parties, but oral arguments heard and records gone through.

5.                Today counsel for the complainant suffered statement that though the total claimed amount is Rs.15,90,000/-, but no receipt available  with the complainant regarding cash deposit of amount of Rs.3,05,000/-. Even counsel for the complainant suffered statement that for ensuring that the matter attains finality without loss of time, he does not press for the amount of Rs.3,05,000/-. Further he suffered statement that interest may be allowed @ 9% from the date of deposit of last payment. Even compensation and litigation costs as per that recorded statement may be reduced to Rs. 40,000/-. When these pleas taken into consideration, then certainly this Forum has jurisdiction because the aggregate of the claimed relief amount goes less than the limit of Rs. 20 lakhs.

6.             Contents of affidavit Ex.CW-1/1 of complainant alongwith receipt Ex.C-2 and copy of registration certificate Ex.C-1 as well as of provisional allotment letter Ex.C-4 shows that complainant able to establish as if he deposited amount of Rs.12,85,000/- with OP society after becoming member of it and thereafter Plot No.473 in Sector 111-112, Mohali having area of 100 sq. yards was allotted to him @ Rs.11,000/- per sq. yard. Total sale price of the plot to be purchased by complainant as such was Rs.11.00 lakhs, but complainant had paid Rs.12,85,000/- including EDC/IDC charges and as such it is obvious that complainant paid entire sale consideration amount. Despite that possession of the plot has not been handed over to complainant till date. Rather contents of affidavit Ex.CW-1/1 of complainant and the paper clipping Mark-A alongwith photocopies of snap shot Ex.C-7 establishes that construction work on the spot is not carried out. It is on account of this that after notice through Daily Tribune Chandigarh placed on record as Ex.OP-3/2, general public has been informed as if OP No.1 and OP No.2 has cheated the public by accepting hefty amounts from them, but without keeping of promise of developing the site. Even complaint Ex.OP-3/3 with SSP, Mohali has been filed by Estate Officer of OP No.3 for registration of FIR against OP No.2 i.e. Navjeet Singh, President of OP No.1 society. Perusal of letter Ex.OP-3/2 further establishes that revenue officials have been called upon to desist from registering sale deeds contemplated to be executed by OP No.1 and 2 in favour of purchasers. So this material alongwith copy of public notice Ex.C-6 enough to establish that OP No.1 and 2 are unable to deliver possession of the site because of non development of the same. That amounts to cheating the gullible persons like complainant and as such complainant certainly entitled to refund of the entire paid amount with interest @ 12% per annum from the date of deposit till payment because he had been cheated, despite the fact that he virtually had paid the full sale consideration amount.

7.             Perusal of public notice Ex.C-6, contents of affidavit Ex.OP-3/1 of Shri Meetinder Singh Mann, District Town Planner, copy of letter written by GMADA to Revenue Authorities and copy of the complaint sent by Estate Officer of GMADA to SSP, Mohali, enough to establish that OP No.3 has initiated action against OP No.1 and 2 for violation of provisions of Section 36 (1) of PAPRA Act. This documentary evidence establishes that as and when OP No.3 got knowledge regarding cheating habits of OP No.1 and 2, then it made general public aware of the same by issue of notice through newspaper and even took action for registration of FIR. In view of taking of this action by OP No. 3 against OP No.1 and 2, it has to be held that virtually OP No.3 discharged its duties of control and regulating the activities of promoters to whom developer license granted by it. Complainant never availed services of OP No.3 for consideration allegedly paid or promised to be paid and as such certainly relationship of consumer and service provider do not exist between complainant and OP No.3. So this consumer complaint against OP No.3 is not maintainable, more so when deficiency in service on part of OP No.3 cannot be inferred due to taking of action by it as statutory body against OP No.1 and 2.

8.             No other point argued.

9.             As a sequel of above discussion, complaint allowed against OP Nos.1 and 2 only with direction to them to pay the received amount of Rs. 12,85,000/- with interest @ 9% per annum from the date of deposit of last payment namely 09.09.2015 till payment. Compensation for mental agony and harassment of Rs.20,000/- and litigation expenses of Rs. 5,000/- more allowed in favour of the complainant and against the OP No.1 and 2. Payment of these amounts of compensation and litigation cost be made within 30 days from receipt of certified copy of order. However, complaint against OP No.3 is dismissed. Certified copies of the order be supplied to the parties as per rules. File be indexed and consigned to record room.

Announced

August 08, 2018

                                                                                (G.K. Dhir)                                                                President

                                                                   (Amrinder Singh Sidhu)                                                                 Member