Case BriefsTribunals/Commissions/Regulatory Bodies

Uttar Pradesh Real Estate Appellate Tribunal, Lucknow: The Division Bench of Justice Dr D.K. Arora (Chairman) and Rajiv Misra (Administrative Member) set aside the decision of the Regulatory Authority and held that the developer did not conceal the details of the project including the status of the same.

The appellant preferred the present appeal against the order passed by the Regulatory Authority whereby the appellant had been directed to refund the amount deposited by the respondents.

Factual Background

Respondents booked 4 BHK Flat in the appellant’s project ‘Godrej Nurture Phase-I’ and paid a sum of Rs 17,51,901 in installments to the appellant. The possession of the unit after completion of the project was to be delivered by 31-3-2024. But the appellant increased the rate of the property in question.

In view of the above, respondents lost faith in the developer, hence filed a complaint about the refund of the deposited amount along with interest. Respondent got the refund with interest at the rate of MCLR+1% per annum, within 45 days.

Aggrieved with the above-stated order, the appellant approached this Tribunal.

Appellant stated that it has not made any change/escalation in the price of the apartment. The lease rent is a pass-through charge which is payable to the competent authority in terms of the title document.

Further, the advance charges were only charged at the time of issuance of the possession letter and for the services/maintenance of the unit and the project the charges were to be paid by all the apartment owners.

The appellant had issued another allotment letter to the respondent on 23.04.2019, indicating the cost of the unit as Rs.1,86,29,264.87p. including taxes mentioning the condition at serial no. 4 to the effect that the allotment of the unit is subject to executing/signing and submitting to the developer/appellant the duplicate copy of the duly signed allotment letter within 10 days of the date thereof and if the developer does not receive the duly signed allotment letter from the allottee/respondent within the timeline mentioned therein, then it shall be deemed that the allottee/respondent has accepted the allotment of the unit on the terms and conditions as specified in the application and the allotment letter.

Respondent was aggrieved by the increase of Rs.3,78,237.92p.

Issued framed

(1) Whether the appellant misrepresented the facts regarding promoter/developer of the project to the allottee?

(2) Whether the appellant committed any illegality in correcting the amount of lease rent payable by the allottee/respondent and taxes from Rs.21,10,077.85 to Rs.21,67,775.16p., advance maintenance charge Rs.1,12,421.03 and lease rent from Rs.5,20,359.10p. to Rs.7,28,478.68p. which resulted in enhancement of the cost of the unit from Rs.18,251,026.95p. to Rs. 18,622,264.87p. vide allotment letter dt. 23.04.2019 (page 57 of the paper book)?

(3) Whether the Regulatory Authority committed any illegality while allowing the claim of the respondent vide impugned order dated 19.02.2020?

Analysis and Decision

The Tribunal on examining the provisions of the application form which was addressed to the appellant signed by the respondents, found that the appellant had disclosed the project and the status of the appellant along with status of Godrej Properties Limited as Development Manager for the project in question by the developer/appellant and the Godrej Properties Limited authorized to develop and operate the Project as per the agreements between the Developer and the Development Manager.

Therefore, nothing was concealed or misrepresented.

As per the application form, it was clearly indicated that the allottees agreed to the cost of the property as mentioned in Schedule III towards purchase of the Unit. However, the Cost of Property shall be exclusive of all charges, fees, taxes, impositions as may be levied by the Competent Authority, such as, lease rent, GST, Cess, property tax, land under construction tax or any future increase thereof or imposition of any fresh incidence of tax levied by Competent Authority; (“Statutory Charges”) in respect of the Unit and Club Membership Charges, recovery or payments towards maintenance and operation of common areas and facilities, stamp duty, registration charges, any future increase thereof and all other costs, charges and expenses incidental thereto in connection with any of the documents to be executed for the sale of the Unit, as per the provisions of applicable laws.

On examining the two allotment letters, it was found that the appellant corrected the amount of taxes, lease rent and mentioned advance maintenance charges. After correction of the same the amount of the unit became Rs.1,86,29,264.87p. from Rs.1,82,51,096.95p. and resulted in the increase of cost of Rs.3,78,167.92p.

Tribunal found no illegality in correcting the amounts in the second allotment letter.

In the opinion of the Tribunal, the appellant had disclosed each and every aspect and details of the project including status of the developer and development manager.

In view of the above discussion, the impugned order was set aside. [Bick Rise Developer (P) Ltd. v. Antaryami Kumar, Appeal No. 472 of 2020, decided on 22-3-2022]


Advocates Before the Tribunal:

Kapil Madan, Counsel for the Appellant

Shiv Prakash Pandey, counsel for the Respondents