For not allotting the flat within stipulated time, the Allahabad High Court has directed the Greater Noida Industrial Development Authority to refund the amount deposited by them to the petitioners (people who had booked flats) at the rate of nine percent interest.
The Division Bench of Justice Pritinker Diwaker and Justice Ashutosh Srivastava passed this order while hearing a petition filed by Sheela Rustagi and another.
The writ petition has been filed praying for the issuance of writ of mandamus commanding the Greater Noida Industrial Development Authority to refund the entire money deposited by the petitioners towards the alleged allotted flats including registration fee and other expenses borne by the petitioners such as fee / stamp for execution of lease deeds/agreement etc, along with 15% compound interest on quarterly basis.
A further prayer to quash the communication / office order dated 14.8.2019 and communication / office order dated 17.9.2019 issued by the Additional Chief Executive Officer, Greater Noida, Industrial Development Authority, District Gautam Budh Nagar has also been made.
The writ petition has been filed with the allegations that the Greater Noida Industrial Development Authority (GNIDA) has been established by the Government of Uttar Pradesh for industrial development and besides other functions, it also provides residential facilities to the common man by launching various schemes. GNIDA is an instrument of the State and its functions relating to developments of land and other schemes are governed by the provisions of UP Industrial Area Development Act, 1976.
In 2013, the GNIDA launched a scheme in 3 Sectors of Greater Noida, namely, Sector Omicron-1, Omicron-1A and Sector 12 for construction and allotment of multistoried flats/ built up houses under scheme Code BHS-17/2013. For construction and for giving possession of the proposed flats, a period of 3 years was prescribed. The petitioners applied under the scheme for one flat on the basis of cash down payment and paid full amount. The petitioners in order to make the payment towards the flat had taken a bank loan for making part payment and thereafter they paid the installments fixed by GNIDA together with 12% interest.
The petitioner was allotted Flat, Tower H, Sector Omicron-1A under allotment vide allotment letter dated 29.1.2014.
The petitioner paid a sum of Rs 3,89,000 towards the registration money and further a sum of Rs 8,37,295 after adjustment of registration money. The total admitted amount deposited by the petitioner is Rs 50,31,905.
It is contended by the counsel for the petitioners that according to the conditions and details disclosed in the brochure of the aforesaid residential scheme, the flats were required to be handed over to the allottees within a period of three years from the date of issue of the allotment letter as per the declaration made by GNIDA under the heading ‘N’ of the brochure. A condition was also there that the legal documentation and taking of possession is required to be done by the allottees within a period of 60 days from the date of offer of possession and the extension of time for that purpose was with penalty / administration charges.
On the failure of the allottees to execute legal documentation within the extended time, the allotment was subject to cancellation and the entire deposited money was to be forfeited by GNIDA. The GNIDA is charging penal interest at the rate of 15% compound interest on quarterly basis on delayed payment as is clear from the brochure of the scheme. The GNIDA failed to give possession of the aforesaid flats within the scheduled period of 3 years i.e January, 2017.
Counsel for the petitioners submitted that the petitioners approached GNIDA authorities regarding the delay in completion of the project but they could not receive any definite and proper response or assurance and were asked to wait.
Counsel for the petitioners further submitted that the petitioners and other allottees approached the respondent GNIDA authorities from time to time, but they were asked to wait for one or two months but without any definite assurance or plan. In the year 2018, the petitioners were informed by the office of the respondents that they will get the flats ready in June, 2018 and will get the possession of the flats.
Counsel for the petitioners said that considering the delay in getting possession of the flats the petitioners and some of the other allottees started searching for alternative accommodations and also finalized it and approached the GNIDA authorities to refund their amount deposited against the allotment of the proposed flats but the GNIDA authorities did not pay any heed for the redressal of the grievances of the petitioners and assured that possession of the flats would be given upto June, 2019.
Counsel for the petitioners further said that the Additional CEO, GNIDA issued the impugned office order dated 14.8.2019 mentioning therein that under built up housing scheme BHS-17, the possible date for possession of flats was scheduled to be handed over to the allottees of flats of Sector Omicron-1A in the month of June, 2019 but the delay is occurring in the handing over possession for unavoidable reasons and hence, they are being offered relocation of flats in other sectors of the scheme which is completely developed and is ready for possession, however, the flats in those scheme are subject to increase of value/cost and if the allottees are not ready to accept accommodations, they can surrender their allotments and take back their amount after deduction of 10% of the deposited amount without any interest.
The petitioners objected to the conditions of the office order dated 14.8.2019 and made representations against the same.
It is next contended that GNIDA authority despite giving assurance for handing over possession of the flats allotted failed to complete the project and failed to give possession of the flats. Instead the GNIDA authority issued another office order dated 17.9.2019 with one more offer to the effect that the allottees who want to stick to their allotment/allotted flats may wait till the completion of those flats in Sector Omicron-1A subject to their acceptance in writing within 30 days. The other conditions of the order dated 14.8.2019 remained same in the office order dated 17.9.2019 issued by the respondents.
Counsel for the petitioners submits that the petitioners are now interested in refund of their entire money deposited against the flats together with interest from the date of deposit.
Counsel for the petitioners have placed reliance upon a decision of a co-ordinate Bench of the Court rendered in Writ-C No 33847 of 2019 (Vinod Kumar Gautam and 4 others versus State of UP and 3 others) dated 26.11.2019 whereby the co-ordinate Bench partly allowed the writ petition with direction to the respondents to refund the entire amount of the petitioners within two months from the date of production of certified copy of the order along with 15% interest from the date of deposit.
The counsel submits that the petitioners are equally circumstanced inasmuch as the petitioners of the Writ Petition were the allottees under the same scheme of GNIDA.
Ramendra Pratap Singh, counsel representing the respondents, who has filed counter affidavit, does not dispute the fact as argued and mentioned in the writ petition. He submitted that due to circumstances beyond the control of the authority, construction of the flats have been delayed and the orders dated 14.8.2019 and 17.9.2019 have been issued as per the terms of the brochure. He further submits that the money would be refunded as per the terms of the brochure of GNIDA after deduction of 10% along with interest @ 4% per annum.
Counsel for the petitioners vehemently opposed the arguments made by Ramendra Pratap Singh, counsel for the respondents and submitted that as per Condition-F of the brochure of GNIDA “Mode of Payment” in case of default of payment, petitioners are required to pay the same with interest at the rate of 15% per annum compounded quarterly, therefore, GNIDA is also liable to return the entire amount along with the same interest.
We have also gone through the decision dated 26.11.2019 of the coordinate Bench of the Court passed in Writ Petition. The SLP against the said decision has also been dismissed by the Apex Court vide its decision dated 20.11.2020. We are of the view that the petitioners are also entitled to the same benefit as extended to the petitioners of Writ Petition particularly, in view of the fact that it relates to the same scheme, the Court held.
In view of the above, considering the facts and circumstances of the case, the Court allowed the writ petitions with direction to the respondents to refund the entire amount of the petitioners deposited by them against the flats allotted within 2 months from the date of production of certified copy of this order along with 9% interest from the date of deposit. Petitioners are also entitled to costs quantified at Rs 20,000 each.