West Bengal State Commission Holds Green Tech IT City Developers Liable For Failure To Deliver Flat Within Time

Brief Facts:

Mr Shibli Numani (“Complainant”) entered into an agreement with Green Tech IT City Pvt. Ltd. (“Builder”) to purchase a flat in Rajarhat, West Bengal. They paid Rs. 12,52,395/- to the Builder out of the total consideration of Rs. 27,20,000/-, as earnest money. The balance payment was due upon registration of the sale deed, with the entire construction to be finished within twenty-four months from the agreement's effective date. However, the Builder failed to meet this deadline for completion. The Complainant sent a legal notice, citing excessive delay and deliberate failure to complete the project as agreed upon. Additionally, the Builder neglected to refund the earnest money paid by the Complainant. Feeling aggrieved, the Complainant filed a consumer complaint in the State Consumer Disputes Redressal Commission, West Bengal (“State Commission”).

Observations by the Commission:

The State Commission found that the Complainant had entered into an agreement with the Builder to purchase a specific residential unit within a certain timeframe. However, the Builder failed to complete the construction within the agreed-upon timeframe, despite legal notices from the Complainant. The State Commission determined that this constituted a deficiency in service on the part of the Builder. Reliance was placed on Fakir Chand Gulati vs Upal Agencies Private Limited [(2008) 10 SCC 345], wherein the Supreme Court held the Opposite Party deficient in service for failure to keep its promise.

Given this situation, the State Commission held that they should not be obligated to wait any longer for the Builder to deliver possession. Therefore, the Builder was directed to refund Rs. 12,52,395/- to the Complainant along with 9% interest and pay Rs. 10,000/- for litigation costs.