NCDRC directs Mumbai builder to complete decade-old 60-storey project in 3 years
The order puts at ease over a dozen buyers who had booked flats in RNA Metropolis
The National Consumer Disputes Redressal Commission has directed a builder to complete within three years a 60-storey skyscraper that has been under construction for a decade at Sewri West, and compensate the buyers for the delay. The allotment dates for the flats were between 2010 and 2014. The commission rejected as “very unreasonable’’ the offer of East and West Builders, a RNA Corp group company, to complete the work in the next five years.
Significantly, in a strong finding that may shake up other builders, the apex consumer body held that the builder cannot attribute the “abnormal delay’’ to a 2012 amendment to the Development Control Regulations (DCR). The project has to be now completed under the provisions of the new Real Estate (Regulation and Development) Act (RERA).
The order puts at ease over a dozen buyers who had booked flats in RNA Metropolis. The project, originally designed to have over 60 floors, had received a commencement certificate in 2007. However, as the work was only at “plinth level” in 2016, as many as 13 buyers approached the commission pointing out that no date of completion was still set. They had booked flats costing anywhere between Rs 1 crore and Rs 3.5 crore.
The buyers’ primary case, argued their lawyer Siddhesh Bhole, was that despite being allotted flats in the under construction project, there was no sight of work or completion. A 53-year-old Colaba resident, who was allotted a flat in 2013, said she had booked a 2,000 sq ft 3BHK flat on the 30th floor with two parking spaces for almost Rs 3.5 crore. She said that in 2004-05, the builder had advertised about a “high-tech building’’ in Sewri West as part of a free-sale component in a large redevelopment project. Her complaint said the builder had “shown unflinching commitment to complete the project by 2014’’. By 2012, she had paid Rs 94 lakh for the flat. Bhole said the delay had caused losses to buyers who had paid up up to a crore in certain cases as part payment, but were “clueless’’ about the project status.
The buyers sought Rs 1.5 crore in damages from the builder. The commission directed the project’s promoter, East and West Builders, to pay compensation to the complainants in the form of simple interest at 8% per annum on the amounts already paid. The compensation, however, has to be paid with effect from four years from the date of allotment till possession is offered.
The builder’s representative Anubhav Aggarwal was present before the commission when the presiding member, Justice V K Jain, passed a final judgment on October 23 in a set of 13 cases. When contacted, Agarwal however said he had “no comments because the matter is subjudice”.
There are over a dozen more complaints from buyers still pending before the commission, including by two who now want to exit from the project.
Advocate Prateek Mehta, appearing for East and West, opposed allegations of deficiency. The builder said the delay was due to reasons beyond its control. He said it was due to the 2012 amendments to the DCR, requiring compulsory changes to the flat layouts, fresh designs, plans and approvals from the civic body. The builders offered to return the money to any buyer who wished to withdraw. New plans were issued in 2014 and new commencement certificate till plinth level granted in March 2015 and for second parking upper floor level in November 2015. Construction was on in full swing now, said the builder, but would take another five years for completion.
The National Consumer Disputes Redressal Commission has directed a builder to complete within three years a 60-storey skyscraper that has been under construction for a decade at Sewri West, and compensate the buyers for the delay. The allotment dates for the flats were between 2010 and 2014. The commission rejected as “very unreasonable’’ the offer of East and West Builders, a RNA Corp group company, to complete the work in the next five years.
Significantly, in a strong finding that may shake up other builders, the apex consumer body held that the builder cannot attribute the “abnormal delay’’ to a 2012 amendment to the Development Control Regulations (DCR). The project has to be now completed under the provisions of the new Real Estate (Regulation and Development) Act (RERA).
The order puts at ease over a dozen buyers who had booked flats in RNA Metropolis. The project, originally designed to have over 60 floors, had received a commencement certificate in 2007. However, as the work was only at “plinth level” in 2016, as many as 13 buyers approached the commission pointing out that no date of completion was still set. They had booked flats costing anywhere between Rs 1 crore and Rs 3.5 crore.
The buyers’ primary case, argued their lawyer Siddhesh Bhole, was that despite being allotted flats in the under construction project, there was no sight of work or completion. A 53-year-old Colaba resident, who was allotted a flat in 2013, said she had booked a 2,000 sq ft 3BHK flat on the 30th floor with two parking spaces for almost Rs 3.5 crore. She said that in 2004-05, the builder had advertised about a “high-tech building’’ in Sewri West as part of a free-sale component in a large redevelopment project. Her complaint said the builder had “shown unflinching commitment to complete the project by 2014’’. By 2012, she had paid Rs 94 lakh for the flat. Bhole said the delay had caused losses to buyers who had paid up up to a crore in certain cases as part payment, but were “clueless’’ about the project status.
The buyers sought Rs 1.5 crore in damages from the builder. The commission directed the project’s promoter, East and West Builders, to pay compensation to the complainants in the form of simple interest at 8% per annum on the amounts already paid. The compensation, however, has to be paid with effect from four years from the date of allotment till possession is offered.
The builder’s representative Anubhav Aggarwal was present before the commission when the presiding member, Justice V K Jain, passed a final judgment on October 23 in a set of 13 cases. When contacted, Agarwal however said he had “no comments because the matter is subjudice”.
There are over a dozen more complaints from buyers still pending before the commission, including by two who now want to exit from the project.
Advocate Prateek Mehta, appearing for East and West, opposed allegations of deficiency. The builder said the delay was due to reasons beyond its control. He said it was due to the 2012 amendments to the DCR, requiring compulsory changes to the flat layouts, fresh designs, plans and approvals from the civic body. The builders offered to return the money to any buyer who wished to withdraw. New plans were issued in 2014 and new commencement certificate till plinth level granted in March 2015 and for second parking upper floor level in November 2015. Construction was on in full swing now, said the builder, but would take another five years for completion.
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