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Reply Edited
Reply Edited
INDEX
Date: .10.2021
Respondent
Through Counsels:
Date: .10.2021
Respondent
Through Counsels:
PRELIMINARY OBJECTIONS/SUBMISSIONS:
[1.] That at the outset, the rRespondent humbly submits that each and
every averment and contention, as made/raised in the cComplaint,
unless specifically admitted, be taken to have been categorically
denied by rRespondent and may be read as travesty of facts.
[2.] That the cComplaint filed by the cComplainant before this ae Ld.
Authority, besides being misconceived and erroneous, is untenable
in the eyes of law. The cComplainant has misdirected himself in
filing the above captioned cComplaint before this athis Ld. Authority
as the reliefs being claimed by the cComplainant, besides being
illegal, misconceived and erroneous, cannot be said to even fall
within the realm of jurisdiction of this aLd. Authority.
[3.]
1. It would be pertinent to make reference to some of the provisions
of the Real Estate (Regulation and Development) Act, 2016
(hereinafter referred to as ‘2016 Act’) and the Haryana Real Estate
(Regulation and Development) Rules, 2017 (hereinafter referred
to as ‘2017 Haryana Rules’), made by the Government of Haryana
in exercise of powers conferred by sub-section 1 read with sub-
section 2 of section 84 of 2016 Act. Section 31 of 2016 Act provides
for filing of complaints with this aLd. Authority or the adjudicating
officer. Sub-Ssection (1) thereof provides that any aggrieved
person may file a complaint with the authority or the adjudicating
officer, as the case may be, for any violation or contravention of the
provisions of 2016 Act or the rules and regulations made there
under against any promoter, allottee or real estate agent, as the
case may be. Sub sSection (2) provides that the form, manner
and fees for filing complaint under Sub-sSection (1) shall be such
as may be prescribed. Rule 28 of 2017 Haryana Rules provides for
filing of complaint with this aLd. Authority, in reference to sSection
31 of 2016 Act. Sub-clause (1) inter alia, provides that any
aggrieved person may file a complaint with the authority for any
violation of the provisions of 2016 Act or the rules and regulations
made thereunder, save as those provided to be adjudicated by the
adjudicating officer, in fForm ‘CRA’. Significantly, reference to the
“Authority”, which is this aLd. Authority in the present case and to
the “adjudicating officer”, is separate and distinct. “adjudicating
officer” has been defined under Section 2(a) to mean the
adjudicating officer appointed under sub-section (1) of section 71,
whereas the “Authority” has been defined under sSection 2(i) to
mean the Real Estate Regulatory Authority, established under Sub-
Section (1) of sSection 20.
Apparently, under sSection 71, the adjudicating officer is
appointed by the aAuthority in consultation with the appropriate
Government for the purpose of adjudging compensation under
sSections 12, 14, 18 and 19 of the 2016 Act and for holding an
enquiry in the prescribed manner. A reference may also be made
to Ssection 72, which provides for factors to be taken into account
by the adjudicating officer while adjudging the quantum of
compensation and interest, as the case may be, under Section 71 of
2016 Act. The domain of the Adjudicating Officer cannot be said to
be restricted to adjudging only compensation in the matters which
are covered under Sections 12, 14, 18 and 19 of the 2016 Act. The
inquiry, as regards the compliance with the provisions of Sections
12, 14, 18 and 19, is to be made by the Adjudicating Officer. This
submission find support from reading of Section 71(3) which inter
alia, provides that the Adjudicating Officer, while holding inquiry,
shall have power to summon and enforce the attendance of any
person and if on such inquiry he is satisfied that the person had
failed to comply with the provisions of any of the sections specified
in Sub-Section (1) he may direct to pay such compensation or
interest, as the case may be, as he thinks fit in accordance with the
provisions of any of those Sections. Suffice it is to mention that the
Sections specified in Sub-Section (1) of Section 71 are Sections 12,
14, 18 and 19.
Further, it had been also agreed and accepted that in case of any
default/delay in payment as per the schedule of payments as
provided in Annexure 1 to the Flat Buyer’s Agreement, the date of
handing over of the possession shall be extended accordingly.
Reference may be made to Clause 8.1(b)(iii) of the Flat Buyer’s
Agreement.
[9.] S.No.
[10.] Notificat[11.] Issuing [12.] Period of
[13.] No. of
[14.] Impact
ion Date Authority Ban days on
constructio
n
[15.] 1. [16.] 27.10.201
[17.] Environment [18.] 1.11.2018-[19.] 10 [20.] Inordinate
8 Pollution 10.11.2018 delay in
(Prevention & constructio
Control) Authority n
[21.] 2. [22.] 12.11.201
[23.] Environment [24.] 6 a.m to [25.]
6 60 [26.] Inordinate
8 Pollution p.m (approx.) delay in
(Prevention & (permitted to constructio
Control) Authority work) n
[27.] 3. [28.] 14.10.201
[29.] Municipal [30.] 11.10.2019[31.] 81 [32.] Inordinate
9 Corporation of -31.12.2019 delay in
Gurugram constructio
n
[33.] 4. [39.] Inordinate
[34.] 26.05.202
[35.] Haryana RERA [38.] 180 delay in
[37.] 2020
0 [36.] Covid First Wave (approx.) constructio
n
[40.] 5. [45.] Inordinate
[42.] Covid Second [44.] 90 delay in
[41.] ------ [43.] 2021
Wave (approx.) constructio
n
[46.] [47.] [48.] [49.] [50.] Total=4[51.]
21
[52.]
[53.] It is also submitted that due to the ban imposed by the above
said authorities there was no progress at site consequent to which
respondent’s man power, plant and machinery and other
resources which stood fully mobilized at site were rendered idle
thereby casting upon the Respondent heavy financial losses due to
the stagnancy of resources. It is also pertinent to mention herein
that such bans majorly affect the projects which are near
completion like the project in question. Hence, even after putting
days and nights in completing the project, the delay occurred due
to such circumstances which were beyond the control of the
Respondent Company.
A Copy of direction dated 27 October, 2018 bearing no. EPCA-
R/2018/L-91, direction dated 12 November, 2018 bearing no.
EPCA-R/2018/L-100, notification of Commissioner Municipal
Corporation Gurugram dated 14.10.2019, direction dated
25.10.2019 bearing no. EPCA-R/2019/L-49, direction dated
01.11.2019 bearing EPCA-R/2019/L-53, direction dated
04.11.2019 bearing EPCA-R/2019/L-54, direction dated
08.11.2019 bearing EPCA-R/2019/L-55, direction dated
11.11.2019 bearing EPCA-R/2019/L-56, direction dated
18.11.2019 bearing EPCA-R/2019/L-59 and order dated
04.11.2019 in the matter bearing W.P (C) No. 13029/1985, and
order dated 26.05.2020 bearing No.9/3-2020 HARERA/GGM
(Admn) is annexed herewith as ANNEXURE-R/1 (Colly).
[54.] That there is a huge outstanding amount to be paid by the
allottees, which has resulted in alleged delay in handing over of
possession to the allottees. It is further submitted that due to the
money crunch created by the allottees by not making timely
payments and in order to meet the gap for cost of completion of the
project arisen on account of non-payment/default in payment of
installments by the allottees, the company approached SWAMIH
INVESTMENT FUND - I (Special Window for Completion of
Construction of Affordable and Mid-Income Housing Projects)
which has been formed to complete construction of stalled,
brownfield, RERA registered residential developments that are in
the affordable housing / mid-income category, are networth
positive and requires last mile funding to complete construction. It
has a target corpus of Rs. 12,500 Crores with a greenshoe option of
Rs. 12,500 Crores. The SWAMIH INVESTMENT FUND - I vide their
letter dated 23.07.2020 has sanctioned an initial amount of Rs. 110
Crores which may extend upto Rs. 166 Crores if required to
complete the project. The First Trench had already been disbursed
to the Respondent company in the month of September, 2020 and
the same is being infused into the project for speedy construction.
As per the condition of the fund sanctioned the entire amount of
the fund shall be utilised only in completion of the project under
the observation and monitoring of the agency deployed by the
SWAMIH FUND in the project. The primary objective of
establishment of SWAMIH FUND is to help the Home Buyers in
getting their homes and is sponsored by the Secretary, Department
of Economic Affairs, Ministry of Finance, Government of India on
behalf of the Government of India. If any adverse relief is allowed
by this Hon’ble Court, then the basic objective of the intervention
of the Government of India shall be defeated. A Copy of the
customer wise dues as on 02.09.2021 in Building-10 of the Project
is filed herewith as Annexure-R/2. A Copy of the Sanction Letter of
the SWAMIH INVESTMENT FUND - I dated 23.07.2020 is filed
herewith as Annexure-R/3.
8.[55.] That it is to be appreciated that a builder constructs a project
phase wise for which it gets payment from the prospective buyers
and the money received from the prospective buyers are further
invested towards the completion of the project. It is important to
note that a builder is supposed to construct in time when the
prospective buyers make payments in terms of the Agreement. It is
submitted that it is important to understand that one particular
buyer who makes payment in time can also not be segregated, if
the payment from other prospective buyer does not reach in time.
It is relevant that the problems and hurdles faced by the developer
or builder have to be considered while adjudicating complaints of
the prospective buyers. It is further relevant to note that the slow
pace of work affects the interests of a developer, as it has to bear
the increased cost of construction and pay to its workers,
contractors, material suppliers, etc. It is most respectfully
submitted that the irregular and insufficient payment by the
prospective buyers such as the complainant freezes the hands of
developer / builder in proceeding towards timely completion of
the project.
It is pertinent to mention here that status of the construction
of the building in which the unit allotted to the Complainant is
located is near completion as the finishing work is underway. The
Respondent shall offer the possession of the unit to the
Complainant shortly subject to the payment of the remaining dues
by the Complainant.
REPLY ON MERITS:
[1.] That the contents of para no. 1 of the complaint are matter of record
and anything contrary to the records is denied.
[2.] That the contents of para no. 2 of the compliant are wrong and denied.
It is denied as stated that the Complainant fearing that a huge sum has
already been with the respondent developer hence the Complainant had
no option to sign the agreement. It is denied that the Respondent
assured to handover the possession within 3 years as alleged. It is
further denied that the Respondent extended the timeline of possession
by 15 months as alleged. It is submitted that the present Complainant
had purchased the said unit under allotment in re-sale market. Hence, it
is submitted that the Complainant knowing very well and fully satisfied
in all respect that the agreement dated 28.09.2013 had already been
signed by the erstwhile allottee Mr. Vivek Lamba, had opted to purchase
the said allotment from Mr. Lamba.
[3.] That the contents of para no. 3 of the complaint are wrong and denied
except which are matter of record. It is submitted that due to non-
payment and delayed payment of the other allottees of the said project
the overall construction got impacted considerably. The Respondent
Company has to construct the whole project uniformly and cannot
segregate the allottees who are habitual defaulters from those of the
allottees who have more or less paid all the installments on time. It is
due to the defaults of such allottees, the overall construction of the
project gets delayed. It is pertinent to mention here that status of the
construction of the building in which the unit allotted to the
Complainant is located is near completion as the finishing work is
underway. The Respondent shall offer the possession of the unit to the
Complainant shortly subject to the payment of the remaining dues by
the Complainant.
[4.] That the contents of para no. 4 of the complaint are matter of record
and anything contrary to the records is denied.
[5.] That the contents of para no. 5 of the complaint are wrong and denied.
It is denied that the respondent in order to dupe the complainant in
their nefarious net executed the Builder Buyer's Agreement dated
28.09.2013 with the complainant or that it was executed just to create a
false belief that the project shall be completed in time bound manner.
However, it is not denied that the payment demands were raised by
respondent as per the terms of the allotment and the mutually agreed
payment plan. It is submitted that the erstwhile allottee has executed
the Buyer's Agreement on his own free will and on the basis of his own
estimations and judgments. It is submitted that as the Complainant had
purchased the said allotment in re-sale, he knowingly fully well the
terms of the said agreement had option whether to purchase the unit or
not. Hence, the averment of the Complainant is incorrect.
[6.] That the contents of para no. 6 of the complaint are wrong and denied.
It is denied that the total sale consideration of the flat was Rs.
1,22,83,200/-. It is submitted that the total sale consideration amount
was exclusive of the registration charges, stamp duty charges, service
tax and other charges such as IFMS etc. which are to be paid by the
complainant at the applicable stage.
[7.] That the contents of para no. 7 of the complaint are wrong and denied.
It is denied that the Respondent was liable to handover the possession
of the Unit before 27.12.2016. It is submitted that the period specified in
the Buyer’s Agreement was proposed and the same was subject to the
buyer fulfilling its obligations to make payment of outstanding dues on
time and not being in default under the terms and conditions of the
Buyer’s Agreement. The covenants incorporated in the Buyer’s
Agreement are to be cumulatively considered in their entirety and
selected clauses of the same cannot be considered and read in isolation.
The complainant has completely misinterpreted and misconstrued the
covenants incorporated in the Buyer’s Agreement. The indicated
timelines contained in the agreement were subject to occurrence of
various eventualities and also to other circumstances mentioned therein
which have not been reproduced for the sake of brevity. The contents of
Preliminary Objections/Submissions may very kindly be read as a part
of this paragraph and the same are not repeated herein for the sake of
brevity.
[8.] That the contents of para no. 8 of the complaint are wrong and denied.
It is denied that the conditions in the allotment and Buyer’s Agreement
are illegal and invalid. It is denied that the complainant had no option to
sign the allotment letter and Buyer’s Agreement. It is submitted that as
the Complainant had purchased the said allotment in re-sale, he
knowingly fully well the terms of the said agreement had option
whether to purchase the unit or not. It is submitted that the Flat Buyer’s
Agreement was endorsed in favor of the complainant after his
thoroughly reading and understanding the terms and conditions to his
complete satisfaction and the complainant is now supposed to adhere to
the terms and conditions of the said Agreement.
[9.] That the contents of para no. 9 of the complaint are wrong and denied.
It is denied that the Respondent again extended the period of
completion/possession. It is denied that the Respondent ever assured
that the possession will be handed over within 36 months from the date
of booking. It is submitted that no such representations were made by
the representatives of the Respondent as delivery of possession is only
intimated post execution of the BBA and such contentions of the
Complainant are put to strict proof. However, the submissions made in
the Preliminary Objections/Submissions and previous paras are
reiterated.
[10.] That the contents of para no. 10 of the complaint are wrong and
denied. It is denied that at the time of applying for this flat, the
respondent represented that the building plan is already approved and
construction is started. It is further denied that believing upon the
alleged assurance the Complainant paid Rs. 10,00,000/- for the flat on
03.07.2012. It is submitted that the endorsement was made in favor of
the Complainant in September, 2013 and therefore no payment was
made by the Complainant in 2012 as the Complainant was nowhere in
the picture at that time.
[11.] That the contents of para no. 11 of the complaint are matter of record
and anything contrary to the records is denied. It is, however, denied
that the Complainant visited the Respondent or that no one heard him
and resolved his queries. It is submitted that no representations vide
the imaginary visits were made to the respondent by the complainant
and the question of replying to the same by the respondent does not
arise.
[12.] That the contents of para no. 12 of the complaint are matter of record
and anything contrary to the records are denied. As per the Flat Buyer’s
Agreement, the said compensation shall be paid to the allottee upon the
taking over of the possession of the said flat.
[13.] That the contents of para no. 13 of the complaint are wrong and
denied. It is denied as that the Complainant number of times visited the
respondent with a request to speedily conclude the work but of no avail.
It is reiterated that no representations vide the imaginary visits were
made to the respondent by the complainant and the question of replying
to the same by the respondent does not arise. It is, however, submitted
that status of the construction of the building in which the unit allotted
to the Complainant is located is near completion as the finishing work is
underway. The Respondent shall offer the possession of the unit to the
Complainant shortly subject to the payment of the remaining dues by
the Complainant.
[14.] That the contents of para no. 14 of the complaint are a matter of
record and anything contrary to the records is denied.
[15.] That the contents of para no. 15 of the complaint are wrong and
denied. It is denied that the Complainant is entitled to interest @ 18%
per annum from the date of each payment for not handing over
possession of the flat on time. It is submitted that without prejudice to
the rights of the respondent, the complainant is entitled to the delayed
compensation charges strictly as per the terms of the agreement as
agreed upon by the parties to the complaint. The complainant is not
entitled to assert any claim that travels beyond the scope of the Buyer’s
Agreement executed between the parties.
[16.] That the contents of para no. 16 of the complaint are wrong and
denied. It is denied that the alleged act and conduct of the respondent
has caused lot of physical as well as mental harassment to the
complainant. It is further denied that the complainant has suffered huge
financial loss as his hard earned money is allegedly withheld with the
respondent. It is further denied that the Complainant is entitled to
compensation for mental tension as well as physical harassment. It is
also denied that the Respondent is guilty of deficiency of service. It is
also denied that the Respondent is liable to payback Rs. 1,06,69,102/- to
the Complainant. It is submitted that the Complainant is blowing hot
and cold at the same time as the Complainant is claiming Refund on one
hand and at the same time wants to continue with the Project on the
other hand and as such the Complaint is liable to be dismissed.
[17.] That the contents of para no. 17 of the complaint are wrong and
denied. It is denied that in Tower B-10 out of 16 floors, only RCC of 15
floor structure is complete. It is denied that brick masonry work is
complete only upto 13th floor. It is denied that the plumbing of the tower
has not yet started. It is submitted that status of the construction of the
building in which the unit allotted to the Complainant is located is near
completion as the finishing work is underway.
[18.] That the contents of para no. 18 of the complaint are legal and matter
of record. Hence no reply is warranted.
[19.] That the contents of para no. 19 of the complaint are denied for want
of knowledge.
[20.] That the contents of para no. 20 of the complaint are wrong and
denied. It is submitted that no cause of action has arisen in favor of the
complainant and against the Respondent and the present complaint is
liable to be dismissed with exemplary costs. The alleged cause of action,
if any, is absolutely false, frivolous and concocted one to the very
positive notice and knowledge of the complainant.
Date: .10.2021
Respondent
Through Counsels:
AFFIDAVIT
Deponent