Mumbai: National Commission Orders Developer To Refund ₹87.76 Lakh To Pilot Over Flat Possession Delay

Mumbai: The National Consumer Dispute Redressal Commission (NCDRC) has penalized Alien Developers Private Limited, a Hyderabad based premium real estate developer, after it failed to hand over the possession of its flat booked by the Bandra based commercial pilot, Cyrus Warden. The commission has asked the developer to return the entire cost of Rs 87,76,301, which was paid towards the entire cost of the flat with a 9 percent interest rate on the amount from the date of depositing the money.

As per the order copy, the date of the sale deed as well as the agreement for sale are dated January 2010, and thus, pursuant to these agreements, the pilot had transferred the entire amount through RTGS transfer. The Commission has also directed the developer to pay an additional amount of Rs 10,000 towards the complainant’s litigation charges.

Cyrus had entered into multiple agreements with Alien Developer, whose sale and construction agreement was signed in January 2010. Accordingly, the developer had circulated a draft of an amendment agreement titled "Amendment to Agreement of Sale.", which stated that possession would be provided within 36 months, with an additional grace period of 6 months calculated from March 2017. The pilot, however, did not execute this amendment agreement due to the significant project delays that had already caused him substantial hardship.

“The complainant sought clarification from the developer regarding the delay in possession, which was initially scheduled for December 2011, but received no satisfactory response. Thus, in December 2017, a legal notice was issued to the developer seeking a refund of the deposited amount,” the complaint copy read.

The developer had, however, denied the complainant's contentions and incorrectly asserted that the flats were ready for possession. Upon verification, the complainant found that the flats were not in a ready condition and no occupancy certificate had been issued. Aggrieved by the deficiency in service and unfair trade practices, the pilot filed a complaint before the Consumer Commission.

The developer, in its reply, however, denied the allegation. The developer claimed the complaint was frivolous and vexatious, motivated by the downturn in the real estate market. “The complainant seeks a refund with 18% interest merely because the market conditions have become unfavorable; the complainant is a resident of Mumbai and had no genuine intention of residing in the upcoming project in Hyderabad. The booking was made solely to profit from the rising real estate market in Hyderabad. Also, the complainant did not approach the developer before filing the present complaint, neither for a refund nor for cancellation, nor with any prior grievance, the reply says.

The developer also blamed, several unavoidable circumstances, like the prolonged agitation in Andhra Pradesh over the state bifurcation, the bifurcation itself, and the nationwide lockdowns, which significantly impacted ongoing projects. “These events in themselves qualify as force majeure, said the developer.