State Consumer Commission, UP Holds Sahara Prime City Ltd Liable For Deficiency In Service And Ordered To Compensate Homebuyer For Delay In Possession

The State Consumer Disputes Redressal Commission, Uttar Pradesh, led by Hon'ble Mr. Justice Ashok Kumar, has ruled in favor of homebuyer against Sahara Prime City Ltd. The case sheds light on the challenges faced by the complainants who, despite substantial payments, were denied possession of their allotted unit. This decision emphasizes the imperative for accountability in real estate transactions and sets a significant precedent for consumer protection in the industry.

Brief Facts of the Case:

Anyanya Sharma and others (complainants) had applied for a residential unit in Lucknow under a housing scheme advertised by Sahara Prime City Ltd. Specifically, they sought an allotment for a Type-III bedroom unit with an area of 138.55 sq. meters in Sahara City Homes, as per their application on April 25, 2012. The unit was priced at Rs. 40,07,300, inclusive of location charges amounting to Rs. 3,64,300.

The complainants claimed that, post a special discount of Rs. 2,00,000, they were required to pay a net amount of Rs. 38,07,300. The payment was made through regular installments, culminating in a total sum of Rs. 38,31,983. However, despite their consistent financial commitments, the complainants alleged that Sahara Prime City Ltd failed to provide possession of the allotted unit within the stipulated timeframe of 36 months, commencing from April 25, 2012.

In response to the delayed possession, the complainants approached the respondent company but purportedly faced unresponsive behavior. Distressed by the prolonged non-delivery, the complainants filed a consumer complaint in the State Consumer Disputes Redressal Commission, Uttar Pradesh.

And demand for a refund of the entire amount paid, totaling Rs. 38,31,983, along with 18% compound interest per annum. Additionally, they claimed damages of Rs. 25,00,000 for the mental agony caused by the alleged deficiency in service. The alternative relief sought was the provision of a similar Type-III bedroom unit at a suitable location with the payment of compound interest at the rate of 18% on the amount already deposited until possession.

Arguments by the Opposite Party:

Sahara Prime City Ltd asserted that a spot discount of Rs. 2,00,000 was agreed upon, reducing the net payable amount to Rs. 38,07,300. They contended that this discount was part of the mutual understanding between the parties.

The respondents claimed that the complainants made regular payments, including late payment charges. The total sum of Rs. 38,31,983, deposited by the complainants, allegedly included the principal amount and the agreed-upon late payment charges.

Sahara Prime City Ltd emphasized that they consistently assured the complainants of delivering possession of the allocated unit. They argued that unforeseen circumstances and unavoidable delays were responsible for the possession not being handed over within the stipulated timeframe.

And The respondents argued that they maintained open communication with the complainants to address concerns related to possession. They contended that the delay was not intentional, and they kept the complainants informed about challenges faced by the company.

Sahara Prime City Ltd contested the complainants' claim for mental agony compensation of Rs. 25,00,000, stating that the delay in possession was not intentional. They argued that the mental agony claim was excessive and not justified under the circumstances.

Observations by the Commission:

The Commission acknowledged the complainants' consistent payments and expressed disappointment in Sahara Prime City Ltd for not delivering possession within the stipulated time. The Commission highlighted the mental and service-related strain caused to the complainants and noted that assurances given by the company were not honored.

In its final order, the Commission directed Sahara Prime City Ltd to refund the principal amount of Rs. 38,31,983/- along with 18% compound interest per annum. Additionally, Sahara Prime City Ltd was ordered to compensate the complainants with Rs. 10,00,000/- for damages and Rs. 25,000/- as litigation expenses within two months. If the payment is not made within this period, Sahara Prime City Ltd will be liable to pay 12% annual interest on the total amount until the actual payment is made.

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