Maharashtra State Consumer Commission Holds ERA & Omkar Realtors Liable For Delay In Handing Over Possession Of Omkar Alta Monte Project

The Maharashtra State Consumer Disputes Redressal Commission, Mumbai, comprising Hon'ble Mr. Mukesh V. Sharma (Presiding Member) and Hon'ble Ms. Poonam V. Maharshi (Member), has held ERA Realtors Pvt. Ltd. (Opposite Party No.1), Omkar Realtors & Developers Pvt. Ltd. (Opposite Party No.2), and ICICI Home Finance Company Ltd. (Opposite Party No.3) liable for deficiency in service and unfair trade practice due to delay in handing over possession of a flat in the “Omkar Alta Monte” project. Brief Facts of the Case: The Complainants — Vivek Saxena, Mayadevi Saxena, and Shaily Saxena received a promotional email from ICICI Home Finance Company Ltd. about the project “Omkar Alta Monte” developed by ERA Realtors Pvt. Ltd. and Omkar Realtors & Developers Pvt. Ltd., after which they booked Flat No. 1103 on the 11th Floor, Wing “B” in the said project for ₹1,67,30,500/- and paid ₹1,42,25,627/-. However, despite repeated follow-ups, the Opposite Parties failed to execute the Agreement for Sale and did not deliver possession. The builder unilaterally extended the possession timelines from March 2018 to March 2019 and then to December 2020 without buyer consent, changed the main contractor compromising construction quality, and updated revised timelines on the MahaRERA portal without approval. The Opposite Parties also ignored the legal notice dated 16.03.2021, which led the Complainants to file a consumer complaint under Section 47 read with Section 2(6) and Section 2(47) of the Consumer Protection Act, 2019, seeking possession of the booked flat along with interest, compensation for mental agony, and litigation costs. Contentions of the Complainants: The Complainants contended that the Opposite Parties failed to execute the Agreement for Sale and unjustifiably delayed the possession of the flat. They further argued that the developer changed the main contractor without their consent, compromising construction quality, and made misleading assurances through promotional material. It was also alleged that the Opposite Parties unilaterally updated the possession timelines on the MahaRERA website without buyer approval and ignored their legal notice, amounting to deficiency in service and unfair trade practice. Contentions of the Opposite Parties: The Opposite Parties argued that the complaint was not maintainable in view of the arbitration clause in the transaction documents and was also barred by limitation. They contended that the delay in the project occurred due to force majeure circumstances, including delay in governmental approvals, litigation issues, and the COVID-19 pandemic. It was further alleged that the Complainants had defaulted in certain payments. ICICI Home Finance Company Ltd. additionally submitted that it acted merely as a marketing facilitator and had no contractual obligation toward the Complainants. All Opposite Parties appeared before the Commission and filed their replies denying all allegations of deficiency in service and unfair trade practice. Observation of the Commission: The Commission observed that the Opposite Parties, namely ERA Realtors Pvt. Ltd. (OP-1) and Omkar Realtors & Developers Pvt. Ltd. (OP-2) failed to deliver possession even after several years, repeatedly extended the possession date without valid justification, and the reasons cited—such as force majeure and COVID-19—were not sufficient to explain such prolonged delay. It was specifically noted that changing the contractor and updating MahaRERA timelines without buyer consent amounted to unfair trade practice and deficiency in service. The Commission relied on the Supreme Court's decision in Arifur Rahman Khan v. DLF Southern Homes (2020) clarifying that failure to provide possession within the contractual timeline constitutes deficiency in service Accordingly, the Commission directed the ERA Realtors Pvt. Ltd & Omkar Realtors to execute the registered Agreement for Sale and hand over possession of the flat with occupancy certificate, and amenities , to pay 8% interest per annum on ₹1,42,25,627/- from 01.04.2018 till the date of possession. The commission directed all the parties to pay ₹1,00,000/- as compensation for mental agony and ₹25,000/- as litigation cost Case Title: Vivek Saxena & ors Vs. ERA Realtors Pvt. Ltd. & ors Case No.: CC/21/172 Click Here To Read/Download The Order

Maharashtra State Consumer Commission Holds ERA & Omkar Realtors Liable For Delay In Handing Over Possession Of Omkar Alta Monte Project

Praveen Mishra

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