Compensate homebuyer for delay: SCDRC to Lavasa

The State Consumer Dispute Redressal Commission (SCDRC) has directed Lavasa Corporation Ltd. to adjust the interest amount, due to a consumer over delayed possession, with the last instalment and give the flat to them. Due to delay in giving possession, Lavasa was to pay Rs 16.52 lakh in interest against Rs 14.19 lakh that consumer had to pay as the last instalment for a flat.

The remaining amount, said the consumer body, was to be given to complainants at their choice, as per terms of the agreement. Over and above this, the consumer body directed Lavasa to pay interest at 12% per annum on Rs 41.45 lakhs for an eight-month period (overs Rs 3 lakhs), Rs 1 lakh compensation for mental agony and Rs 25,000 for litigation cost. The order was given by DR Shirasao, presiding judicial member and AK Zade, member of SCDRC on a complaint (CC/16/10) filed by Peter Joseph Pinto and Carol Pinto.

As per the order, the complainants had approached Lavasa to book a flat for permanent residential premises for personal use. An agreement was executed between the two parties for an apartment measuring 1,739 sq.ft built-up on 1st floor of the Lake View apartment. As per the agreement, the complainants had agreed to pay to opponents, total lease premium of Rs.55.64 lakhs and annual lease rent of Re.1/- for the said apartment whose lease would be of 999 years. The agreement registered in February 2010 stated that the flat was to be given in two years time. The consumers paid Rs 41.45 lakh between January 2010 to May 2013, besides Rs 1.45 lakh for registration and stamp duty. However, they did not get possession in the two year's time and filed a consumer complaint.

Lavasa demanded that the complaint not be entertained as the delay on account of Force Majeure — a clause that abdicated liability on its part as per agreement as delay was outside limits of Lavasa. It said that there was a stop-work order by Ministry of Environment, Forest and Climate Change (MOEF) and there was an arbitration clause in the agreement so that should be tried. In the complaint, the Pintos demanded that they be paid interest of Rs 17 lakhs on Rs 42.88 lakhs (including the amount of stamp duty) paid and that be adjusted on the last instalment to be paid of Rs 14.19 lakhs.

POWER TO BUYER

• The consumer body stated that while Lavasa had to pay the interest as per agreement due to delay, the complainants should have also paid the last instalment
• The agreement registered in February 2010 stated that the flat was to be given in two years time