The home buyers of Greater Noida Industrial Development Authority (GNIDA) project BHS 17, Omicron 1 are forced to drag the government agency into litigation. The GNIDA has failed to deliver the project on time, and also demand extra charges over and above the agreed price and against the contractual obligation that does not have any escalation clause.
One of the aggrieved buyers, Neelam Tandon, after having made several reminders to the agency, had approached the Real Estate Regulatory Authority (RERA). She was subsequently asked by the RERA Authority to take possession of the delayed project. The RERA had also directed the government agency to pay delayed interest from 3oth Jan 2017 at the rate of MCLR+1 till the offer of possession.
The buyer has now challenged the RERA judgment before the RERA Appellate, since the Section 18 of RERA clearly states that the buyer has a right to demand refund with interest if the project has not been delivered on time. It is a settled proposition of law that once delay has been admitted, then under Section 18 of the RERA Act the allottee is entitled to refund the entire amount along with delayed interest.
Furthermore, Section 19(4) of the Act reveals that an allottee shall be entitled to claim the entire refund of the amount paid along with interest, if the promoter fails to hand over possession in accordance with the terms and conditions of the agreement of sale.
Neelam Tandon is one among the buyers who was scheduled to get the possession by January-end 2017, but was offered the possession only in July, 2019. Moreover, she was also asked to pay extra fee of more than INR 5 lakh, over and above the total cost, as agreed in the contract. This 68years-old woman having several ailments has written several representations, and Track2Realty is in possession of some of the documents.
The aggrieved buyer vide letter dated 14.09.2020 wrote a letter to the CEO of GNIDA highlighting the inhabitable condition of the flat and specifically pointed out list of amenities which were incomplete. The aggrieved buyer had highlighted that essential fixtures like electric works, power backup, inefficient sewerage system leading to water overflowing, sub-standard door, windows, bathroom, corridors etc. and park not maintained were the reasons why the project was not habitable.
GNIDA is home to one of the most disputed property markets of the country. The government agency has the mandate of regulating the private builders and giving occupancy/completion certificate on the merits of the project. However, the agency itself has failed to complete the project on time and offer the buyers possession within the agreed time and price.
According to Tandon’s counsellor, Shivam Tyagi, the GNIDA that should ideally set the precedent of how private builders should operate, rather seem to be inspired by the wrong doings of the builders in this case. Tyagi reminds that they are not-for-profit-organisations established by the government.
“The buyers are coerced to pay additional amount. First, the project BHS 17 is delayed. Then the buyers are coerced to pay more money even though there is no escalation clause in the contract. Are GNIDA housing schemes meant to provide houses across the demography or make money at the cost of harassed home buyers? The project is not even worth habitable at this moment,” says Tyagi.
Most of the property analysts tracking the market in this part of the world maintain that the GNIDA should ideally set the precedent of how private builders should operate. But the agency in this case is setting a bad precedent of unfair business practices. The buyers are being coerced to pay additional amount, even though the fault lies with the government agency.
The experience and subsequent case of Neelam Tandon is not an incident in isolation. Many other buyers are also feeling the pinch of delayed possession and additional charges being levied upon them. They question the rationale of additional payment and also the fact that the project is yet not worth habitable with all the amenities in place.
Track2Realty is an independent media group managed by a consortium of journalists. Starting as the first e-newspaper in the Indian real estate sector in 2011, the group has today evolved as a think-tank on the sector with specialized research reports and rating & ranking. We are editorially independent and free from commercial bias and/or influenced by investors or shareholders. Our editorial team has no clash of interest in practicing high quality journalism that is free, frank & fearless.
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