Mumbai: Consumer Commission Orders ₹11.65 Cr Refund To Buyer As World One No More The Tallest Building

The National Consumer Commission has directed a refund of ₹ 11.65 crore with interest to a flat buyer who booked a flat in 'World One', Lower Parel after it was no longer the world's tallest building. 

World One being the tallest building was the sole criteria for the buyer to book the expensive flat in it.

World One not the tallest building anymore

However, when it was not going to be the tallest, the buyer stopped paying further installments even though his booked flat was on the 38th floor. He sought possession with 117 floors constructed with all permissions in place from authorities along with delayed compensation or refund with 18 percent interest.

The Commission observed that the representation made to the buyer of the building going to be 117 floors, and that it would be world's tallest was fully proved from brochures and other papers. It added that there was misrepresentation in respect of the height of the building and that the other side did not file any evidence that the order of Airport Authority of India granting sanction for construction upto 284.29 mts. in the year 2013 had become a public news, at that time. Besides, the commission said, sanction of Airport Authority of India for raising height beyond 285.06 meters could not be obtained to date.

The order dated June 26 was passed by Justice Ram Surat Ram Maurya, presiding member and Dr Inderjit Singh, member of the National Consumer Disputes Redressal Commission (NCDRC). It was passed on a complaint by Jagruk Nagrik and Damodardas Jewellers against Shreeniwas Cotton Mills Ltd. (now merged and incorporated as Macrotech Developers Limited) and another and The Lodha Group. The direction for refund to the buyer with nine percent interest was to Shreeniwas Cotton.

Agent advertises World One building as being on par with other tallest buildings in the world

Damodardas Jewellers in its complaint mentioned that an agent of Shreeniwas approached it in November 2014 to book a flat. The agent showed a lucrative coloured brochure and tempted them that "World One" at Mumbai would be the tallest residential building in the world with several floors of parking and 117 upper floors. It would have the best of fittings, swimming pool, steam and sauna rooms among others. The project was advertised as “The World’s Tallest Residential Tower”, “Standing Tall Amongst The World’s Most Iconic Tower”, “Paris Gave The World The Eiffel Tower”, “The Burj Khalifa Defines Dubai”, “Presenting The World Towers India’s New”, “Global Icon”, and “A Sculptural Statement So Powerful, It will Transform Mumbai’s Skyline Forever”.

Believing upon the representations, Damodardas decided to purchase a residential flat in December 2014. A flat measuring 2,044 sq. ft. on the 38th floor was booked after paying a deposit. Its total consideration was ₹14.57 crore. Over a period of time, Damodardas paid ₹11.66 crore. After four instalments, an agreement to sell was executed with Damodardas which was a "construction linked payment plan" with 19 instalments. The complaint alleged that this was unilaterally changed by Shreeniwas to "time linked payment plan" with nine instalments. To make some payments, Damodardas even procured a loan.

Installments demanded from buyer

After construction of the 89th floor, construction at the building stopped but demand for instalment continued to be raised with Damodardas. He was also told by Lodha Group that if he paid the instalment money, interest would be waived and that increase in the tax will also not be applied. Lodha also stated that it was hopeful of getting permission to construct 117 stories and starting construction and that Delhi High court had directed for a survey report in relation to the permission from the Civil Aviation Department. However, the permission did not come beyond 285.06 meters. Damodardas approached Jagruk, which advised filing a complaint in April 2019.

Shreeniwas contended before the commission that Damodardas had not suffered any loss for not constructing beyond 89th floor and that the factum of the objection to the height was in "public domain". It said that it continuously tried to raise the height and part occupation certificate was given and possession was offered to Damodardas in 2018. It also stated that there was misjoinder of parties as far as Jagruk Nagrik and Lodha are concerned.

The commission said so far as default by Damodardas was concerned after the December 2016 instalment, Shreeniwas did not exercise the right to cancel the allotment. On the preliminary objection relating to misjoinder of parties, the commission observed there was no prejudice caused as Jagruk is a voluntary registered consumer association that can file complaints while Damodardas was actual consumer. With respect to Lodha Group being party, the commission said that it has been shown as the developer in the brochure and Lodha also did subsequent communications with Damodardas. It directed Shreeniwas to comply with the order in two months.