Post on 20-Jan-2021
KERALA REAL ESTATE REGULATORY AUTHORITYTHIRUYANANTHAPURAM
Dated lgth Novembe r 2020
Present: Sri. P H Kurian, Chairman.Smt. Preetha P Menon, Member
COMPLAINT NO: 13612020
Royal Orchid Owners Association,House No.7,Ambady,Eswaran Thampi Nagar,
Mukkolakkal, Kallayam P O,
Thiruvananthapuram 69 5043 .
: Complainant
GIE Homes, Great India Estates Pvt. Ltd,TC 5/124614, Sandram. Swathi Nagar,Pippinmoodu, S asthamangal am,
Peroorkada P 0,Thiruvananthapuram 695005.
Respondent
Sri ldaieeb, Chairman,Great India Estates Pvt. LtdCorporation BLri ld ings.
Palayam, Vikas Bhavan P O,Thiruvananthapuram 69 5 023 .
[By Advocate Sameer Kharim ]
This complaint came up for final hearing before the Authority in
the presence of the representatives of Complainant Association in person and
the counsel for the Respondent. Upon hearing the arguments of both the parties
the Authority passes the following order:
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ORDER
1. The Complainants are allottees of the proiect named
'GIE Royal Orchid' at Kuravankonam, Thiruvananthapuram which consists of
50 apartments, developed by the Respondent. The Compiainants paid various
amounts ranging trom 50 to 95 % of the total consideration to the Respondent.
As per the agreements executed between them and the Respondent, the
completed apartments were to be handed over latest by December 2014. Despite
repeated assurances to the Allottees,, the aparlment complex has neither been
completed in fu1l nor handed over to the allottees so far. The Complainants
submit that the inordinate delay of 7-10 years, slow pace of works, lack of visible
funds with the Respondent company, repeated breach of promises to complete,
reluctance of the Respondent to share factual positionitimelines about the project,
lethargy in actively seliing remaining flats to potential buyers,etc. from the part
of the Respondent are the reasons to seek intervention of this Authority. Most of'
the investors are very senior Citizens who invested major portion of their life
time savings and also availing bank loans for which they are paying monthly
installments along with huge interest fiom their meagre pension amounts.
Without the knowledge of the flat owners, the Respondent has pledged certain
number of unsold flats and the land thereto to the State Bank of India which is
now being classified as a Non-performing Asset due to non-payment of monthly
installments. So the Complainants pray for a direction to the Respondent to
complete the said project and deliver it to the buyers within the time lines
maintaining quality standards as in the agreements without prejudice to the
buyers' rights for breach of delivery terms.
Exhibits A1 to 4'6 are the documents submitted by the Complainants.
The Respondent did not file any counter statement. The CEO of the Respondent
No.1 Company appeared in the first hearing admitted the delay in completion
of the project and assured to complete the whole project as early as possible. As
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per the interim direction given by this Authority, the Respondent submitted
application tbr registration of the project under section 3 of Real Estate
(Regulation & Development) Act 2A16 and also convened aioint meeting with
the Complainants and the official of SBI from where he availed the loan and
the Meeting minutes has been submitted( Exbt. B1) According to the meeting
minutes, the SBI official intimated that One Time Settlement is approved for
Rs. 2.59 Crores against the pending loan and as soon as the OTS payment is
made, the property will be free from all liabilities of the Bank. The OTS
proposal is to be implemented within 30 days. He also stated that the earlier
proposal of new housing ioan amangements for settiing loan and project
completion is no longer required in the present amangement and the Respondent
Buiider is free to approach any banker including SBI for home loans. The
Respondent informed that they are in the process of raising fund for the
settlement of OTS.
Exhibit B1 and 82 are the documents submitted by the Respondent.
2. Heared both parties and examined the documents
submitted by them. The Complainants alleged that when they requested for
copy of the joint venture agreement executed between the Respondent and the
Iand owners, the Respondent resfused to give those documents. It being the
right of the allottee/home buyer to get the copies of all documents such as title
deeds of land and their back deeds, joint venture agreement, if any, permits and
approvals obtained as on date, how could the promoter/builder deny such
rights? Even before booking the apartment, the allottee can demand copies of
all such documents and scrutinise them with the heip of some experls. The
Respondent be noted that such denial of right of allottees, to get copies of
documents related to the project whenever they need, amounts to violation ofprovisions of the Real Estate ( Regulation & Development) Act,2A16.
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3. As per our interim order dated 03.11.2020, the
Respondent was directed to file an affidavit with clear affir'mation regarding the
completion of the whoie project in all respects with all the statutory approvals,
amenities and facilities as committed/promised to the aliottees, registration of
common areas in favour of the association and handing over all the documents
related to the project including iand title deeds, electricity & piumbing
drawings, etc to the Association and also clearly showing the stage wise work
Schedule with dates. In compliance of said order, the Respondnet filed the
affidavit fExhibit 82] In the affidavit submitted by the Respondent,it is stated
that the said project was developed by entering into a joint venture agreement
with land owners, agreeing them to give 10 out of 50 apafiments. Out ofremaining aparlments, 23 of them are sold for a value of Rs. 15.04 Crores and
remaining 17 apaftments are to be soid and as on date. The Respondent
expended 15.36 Crores for the project and a sum of Rs. 1.86 Crores is to be
received from various customers on different accounts. An estimate of Rs.
12.64 Crores is required for the completion of the project as per the agreements
with the allottees. The delay in completion of the project was not willful. The
Respondent confitms that he always aspire and remain committed to the
customers and never intentionally backed out from any of the commitments
given to the customers. He assured in the affidavit that the project would be
completed in all respects on or before 31.12.2021 with necessary
approvals/orders/permissions. Regarding the stage wise schedule of works to
be completed, a chart is also enclosed therewith as part of the affidavit. Finally
by that date the project will be handed over to the complainant Association
alongwith all the documents pertaining to the project including land title deeds,
electricity & piumbing drawings, etc. on or before 31.12.2021.
4. During the hearing, the Respondent requested a
time period upto 31.12.2021 for completion of the project in ail respects and
handing over it to the allottees alter settling all the liabilities to the Bank. He
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assured that he will get the loan settled and release the properly from mortgage
within this period. The Complainants also agreed to wait for this period, subject
to conditions being imposed by this Authority. Hence invoking Section 34(fl
& 37 of the Act, we have decided to issue directions as follows:
(1) The Respondent shall complete and hand over, the
project 'GlE ROYAL ORCHID' with all the sanctions / approvals required to
be received from the Authorities concerned, all the amenities and facilities as
committed to the allottees and complete al1 the registrations of sale deeds
related to individual apartments to buyers and common area to the Association
and also to handover all the documents such as copies of joint venture
agreement, title deeds, permits/sanctions, technical drawing related to the
project on or before 3l .12.2021.
(2) The Association shall monitor the progress of works
and make sure that it is being carried out as per the Work Schedule. In case of
any failure from the part of the Respondent, the Association can approach this
Authority and seek intervention.
In the event of any non-compliance of this order by the
Respondent, this Authority shall initiate severe penal actions as provided under
the Act,2016.
This order is issued without prejudice to the right of the
Complainants to approach the Authority for compensation in accordance with
the provisions of the Act and Rules, for the loss sustained to them due to the
delay in completion of the project.
sd /- sd/-Srnt. Preetha P Menon Sri. P H Kurian
Member ChairmanSecretary (iegal)
\,
aTrue Copy/F
t
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BylOrderl
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Exhibit A.1 :
Exhibit .{2 :
Exhibit ,{3 :
Exhibit ,{4 :
Exhibit A5 :
Exhibit 46 :
ASPEl\DrX
Exh i b_iIs_ qUhe urale__o_t th e_e-q m plarults
Copy of the brouchure of GIE Royal Orchid project,
Kuravankonam
Schedule of work supplied by the MD, GIE
E.M Najeeb's letter of commitment made on 20.12.2019
Copy of the Cefiifcate of registration of Association.
Copy of construction agreementdated 05.10.2020 between GIEHomes and Sri. Rakesh & Smt. Sreelatha
Copy of construction agreement between GIE Homes and Sri.
K.S Premachandra Kurup
Exhibits on the side of the Respondents
Exhibit B1 : Minutes of the meeting dated 20.10.2020
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