Unitech Capella Greater Noida Projects Refunds: benefit from Competition Commission (CCI)verdict against DLF

[Rohit Kumar]

Attn Unitech homebuyers : DLFjudgement fallout: How homebuyers can benefit from CCI verdict


http://economictimes.indiatimes.com/markets/real-estate/policy-/DLF-judgement-fallout-How-homebuyers-can-benefit-from-CCI-verdict/articleshow/9692875.cms

The Competition Commission of India (CCI) has imposed a penalty of around 600 crore on realty major DLF for abusing its dominant market position. Levied by the anti-monopoly watchdog , the penalty was imposed after DLF was found guilty of violating the Competition Act, 2002. The fine amounts to 7% of the company's average annual turnover in the past three years.

Following complaints in May last year by several people who had booked flats in a DLF project, the CCI had referred the matter for probe by the Director General (Investigations). According to one such complaint, DLF had promised to complete Belaire, its residential project in Gurgaon, in 2009, but buyers are yet to get possession of their apartments.

In addition, DLF has increased the number of floors in the apartment complex from the original figure given to buyers. This led to the number of apartments in Belaire shooting from 384 to 564. DLF has been penalised for an offence that is common among the hundreds of other builders in the country.

"This is a significant intervention by the Competition Commission and if upheld, it gives a powerful tool to the average property buyer against the developer. A buyer may refuse to sign the agreement quoting this judgement, saying that it is anti-competitive and, therefore, unacceptable to him," says Farhad Sorabjee, partner at law firm JSA Law.

Is your builder going the DLF way?

The CCI, in its 237-page order against DLF, has criticised the terms and conditions of the contract, which was signed by the company with the buyers of Belaire. It said that these were stacked in favour of the developer. DLF, in its defence, says that these were industry practices and it was merely adopting the same. Now, the Commission is likely to order a probe into other developers based on preliminary investigations , which suggest abuse of power by the developers.

To avoid the same fate as that of DLF homeowners, consider the following points highlighted by the CCI before signing the buyer's agreement. If, however, you are a victim, we tell you how to approach the Competition Commission in order to redress your grievances.

Punitive penalty: For any delay in payment by buyers, DLF wanted them to pay an interest of 15% per annum for the first 90 days after the due date, and 18% for delays beyond that. In sharp contrast, a delay of over three years on the part of the builder would entitle the buyer to a compensation of just 5 per square foot per month. There is no timeline specified for delivery of possession by DLF.

Unilateral right to increase/decrease super area: DLF has the unilateral right to increase or decrease the super area without consulting allottees, who are bound to pay an additional amount when demanded by the company or accept a reduction in area. If there is a reduction in the super area, the refundable amount due to the allottee is to be adjusted from the final instalment.

No exit option for buyers: Allottees have no exit option except when DLF fails to give possession within the agreed time. Even so, the buyer gets the refund without interest only after the sale of the said apartment by DLF and without accounting for the sale proceeds to the allottee.

Exit clause for the company: DLF's exit clause gives it full discretion, including abandoning the project, without any penalty. The company's liability in such a case is limited to refunding the amount paid by the allottee, with a simple interest of 9% per annum for the period for which the amount was lying with the company, and to pay no other compensation.

Unilateral changes in agreement: The developer claims the right to make changes in the agreement unilaterally without any right to the allottee.

Rohit
Unitech Homebuyer

On Tue, Aug 2, 2011 at 11:33 AM, Rohit Kumar <reply...@gmail.com> wrote:

also Please read about two Win in the court (taken from economic Times)

National Consumer Commission
1. Buyer is entitled to opt out of a project if there is a delay in delivery.
A buyer is entitled to opt out of a housing project if there is delay in delivery of possession of the house by the real estate developers, the commission has held. It
has also said that the buyer is entitled to a refund of the entire money with reasonable interest and any deduction on the said amount is unjustified. The
commission passed the order on a petition of an Agra resident, Indira Gupta, seeking the quashing of UP State Commission's direction to deduct 20% from the
amount to be refunded to the complainant.

 

3. A buyer is not constrained by the agreement for a court of his choice.
In the Neha Singhal vs Unitech case (first appeal no 426 of 2010), the commission has held: "To emphasise, the clause relating to jurisdiction of 'courts' in the
agreement between the parties cannot by itself over-ride the statutory right of the appellant/ complainant conferred by the above-mentioned provision of the Act.
That would defeat the purpose and object of the Act. This view is also in accordance with the provisions of Section 28 of the Indian Contract Act, 1872 (as
amended with effect from 8th January 1997).

On Tue, Aug 2, 2011 at 11:33 AM, Rohit Kumar <reply...@gmail.com> wrote:

Nishith, I was refering to ICICI Bank (HDFC was bymistake)

 

So folks here are the update

1. ICICI bank Noida Branch told me that they will not help me in getting money from the builder.
2. to get refund of the my Money. i have to go to Court
3. Before going to court I have to send letter thru registerd post to ICICI bank and UNITECH, and then two more reminder letters
4. Then File for the Case in Court.

Rohit

 

On Wed, Jul 20, 2011 at 2:13 AM, nishith srivastava <srivast...@gmail.com> wrote:

Dear Rohit,

 

I recommend not to condone HDFC.

 

If I understand the process right, a loan is granted on 2 premises

• Evaluation of your own credit worthiness
• Evaluation of the developer and project

Therefore, if at all your loan is disbursed from HDFC its only because HDFC would have internally approved the developer and project. As the project is not coming up now or in other words indefinitely delayed, HDFC cannot just wash its hands off and throw the onus on you to settle your issues with the developer. Their loan is secured by a property collateral. If the collateral does not exist or is not in the process of being created, they cannot come back at you as strongly as in any other regular instance (for example - a default wherein the property(collateral) exists and can be liquidated by a bank to recover its dues).

 

Therefore, you must touch base with a senior HDFC employee and apprise them the loan repayment is under threat as the developer which they have approved has not come good on their promise. Remember, a bank dealing with developers is more likely to co-erce a developer into settlement. If the developer ignores then he runs the peril of being blacklisted by a bank and the word spreads and so does his source of funds (credits) for any future or current projects.

 

Let me know what you think.

 

Regards,

 

Nishith

 

I hope this helps 

 

On Tue, Jul 19, 2011 at 10:29 PM, Rohit Kumar <reply...@gmail.com> wrote:

Folks, I chekced with HDFC Bank person, here is what he told me..


- find the clip from the newspaper where Builder issued Notice for Cancellation of he Project
-Please read the contract that you signed at the time of Booking Flat. There might me a point which might make our case week. So lets read our contracts
-We can hire Lawyer- explore legal options
-Then asa group we file case

Please feel free to add if i missed anything

Rohit

On Tue, Jul 19, 2011 at 3:18 PM, pns <prahla...@gmail.com> wrote:

I am planning to take action now. A collective action would be a
better idea. We could file a PIL against Unitech.

On Jul 12, 3:37 pm, Rohit Kumar <replyro...@gmail.com> wrote:
> I am facing similar ISSUE. Please include me in this
>
> Rohit.
>

> On Tue, Jul 12, 2011 at 2:43 PM, pns <prahladnsi...@gmail.com> wrote:
> > Any update on Unitech Capella Greater Noida Projects Refunds?  I am
> > ready to take an action to get my money back.
>
> > Thanks.
>
> --
>
> The alchemic belief : “When you seek out your own personal legend the
> universe conspires to help you along the way"

--

The alchemic belief : “When you seek out your own personal legend the universe conspires to help you along the way"

--

The alchemic belief : “When you seek out your own personal legend the universe conspires to help you along the way"

--

The alchemic belief : “When you seek out your own personal legend the universe conspires to help you along the way"

--

The alchemic belief : “When you seek out your own personal legend the universe conspires to help you along the way"