Second allottee gets relief in property row

Unitech had undertaken a housing project in which Lalit Kumar and Rajeev Singh had booked a villa. The agreement for sale dated May 10, 2012 stated the villa would be sold for Rs 2,13,20,104 and possession would be given within 24 months. After making part payment, Kumar and Singh sold the allotment rights to Dr. Amar Deep Yadav who paid them Rs1,29,50,000 and also agreed to clear the remaining dues of the builder.
Yadav paid the builder the balance amount of Rs1,15,52,491, but possession was not given. So he filed a complaint before the National Commission. Unitech contested the case. It attributed the delay to circumstances beyond its control, but stated it would be soon hand over possession.
The Commission overruled the objection that Yadav, being a second allottee, was not a consumer. It held he had availed the services of the builder, having purchased the villa while it was under construction.
The Commission observed the dispute was about delay in possession. It noted the agreement for sale contained a clause for payment of compensation for such delay. It pointed out that normally neither the consumer fora nor the courts revise the terms agreed upon between the parties, so builders take advantage and force the consumer to sign on the dotted line, agreeing to terms which are unilaterally imposed by them.
Hence, in a deviation from the norm, the Commission stepped in to award adequate compensation. It directed Unitech to complete construction, obtain the occupancy certificate, and hand over possession by June 30, 2019. Besides the monthly compensation of Rs 5 per sq.ft of super built-up area which was payable under the agreement, the Commission also awarded interest at 6% on the deposited amount. If possession is not handed over, Yadav would be entitled to claim a refund of the entire amount along with 11% interest. Litigation costs of Rs10,000 were also awarded.
Conclusion: A second allottee is a consumer. Consumer fora are not bound by the terms of the agreement and can award suitable compensation to a consumer.
(The author is a consumer activist and has won the Govt. of India's National Youth Award for Consumer Protection. His email is jehangir.gai.columnist@outlook.in)