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Judgment
An application in Form E of the National Capital Territory of Delhi Real Estate (Regulation and Development) (General) Rules, 2016 was filed on 11.06.2021 by M/s Tirath Ram Ahuja Pvt. Ltd., promoter of project ‘Avant Grade’, 11, Friends Colony West, New Delhi-110065, registered with the Authority under Reg. No. DLRERA2018P0002 for extension of validity of registration.
The Promoter Applicant deposited required fee of Rs.17,705/- on 11.06.2021 vide DD no. 720220.
From the records it is seen that project ‘Avant Grade’ was registered on 24.01.2018 with validity upto 31.08.2020.
The validity of registration was extended by this Authority on 05.06.2020 upto 31.05.2021 on account of Covid-19, First wave. It is seen that the present application for extension was filed two months after the expiry of previous validity whereas same should have been filed three months prior to the expiry of validity.
As the application was time barred, a show cause notice was issued to the Promoter Applicant on 29.12.2021 seeking explanation for delay.
The Promoter Applicant in reply to the show cause notice informed the Authority that the delay in filing the application was due to litigation between the Promoter Applicant and South Delhi Municipal Corporation (now MCD).
The application was first listed for hearing on 25.02.2022 and case was thereafter heard on 18.05.2022, 23.06.2022, 15.07.2022, 22.07.2022, 02.08.2022, 25.08.2022, 14.09.2022 and 29.11.2022.
The Authority during the hearing held on 22.07.2022 sought the following information/documents from the Promoter Applicant in order to examine whether the project could be completed in time:
The details of money received by the applicant from all sources;
Copies of agreements entered into with various companies/ institutions for funds received;
An affidavit to the effect that no deviation has been made from the sanctioned building plans.
During the hearing held on 02.08.2022, it was noted that the Promoter Applicant had not informed the Authority through Quarterly Progress Reports about the change in the sanctioned building plan reducing the no. of dwelling units from 16 to 10.
The Promoter Applicant further informed that M/s Panchsheel Reality and Developers Pvt. Ltd. have financed the project with Rs. 69.5 Crore till date and are willing to invest further for completion of project.
The Promoter/Applicant has given an affidavit that they have neither booked nor sold any unit in the project till date.
A site inspection team was sent by the Authority on 14.09.2022 to ascertain the progress of the project on ground. The team inspected the site on 20.09.2022 and submitted report as follows:
“STATUS REPORT”
In compliance of Interim Order dated 14.09.2022 passed by this Hon’ble Authority notice for inspection of site was issued on 15.09.2022. The undersigned(s) along with Shri. Amit Kumar (CDV) has visited the site of project “Avant Garde” at Plot No. 11 Friends Colony West, New Delhi-110065 on 20.09.2022 at 12.00 noon.
It is submitted that at the site Shri. Arun Kumar, Director of Tirath Ram Ahuja Pvt. Ltd. along-with Shri Hiranmay Choudhary Manager, Accounts (Authorized Representative), Shri Purshotam Project Engineer, Shri Anand Shangvi for Panchsil Group and Advocate Prashant were present on behalf of the Tirath Ram Ahuja (herein after referred as Promoter/Applicant).
On inspection of the site following observations are made:-
1.The structure has been constructed as per the regularized drawings/layout plans approved by the South Delhi Municipal Corporation (Now MCD) vide G-8 No. 54925 dated 05.10.2021. Accordingly, the revised layout is as under:
S.NO FLOOR DWELLING UNITS 1. Basement 75 parkings (as per plans) and Store Rooms 2. Ground Floor 1, 2 and 3 (Three Dwelling Units) 3. First Floor 4, 5 and 6 (Three Dwelling Units) 4. Second Floor 5, 7 and 8 (Two Dwelling Units) 5. Third Floor 5, 9 and 10 (Two Dwelling Units) 2.After physical inspection of the site in view of the sanctioned building plans.
It is submitted that dwelling unit no 5 is at three floors i.e. First to Third Floor and is internally connected through lift and internal staircase from First Floor to Third Floor.
3.As, informed by the Promoter,, during the site inspection, the dwelling unit no. 5 is being constructed for personal use and residence of Promoter and same is not for sale as per the regularized drawings/layout plans approved by South Delhi Municipal Corporation (Now MCD) vide G-8 No. 54925 dated 05.10.2021.
4.The cement plaster has been completed on external facade and painting work is pending and yet to be done.
5.The Flooring and Internal finishing of walls are still pending on all floors.
6.The MEP (Mechanical, Electrification and Plumbing) work is in progress.
7.The Drainage and Sewer work is pending and is yet to be executed.
8.The Development work (Road) is pending and is yet to be executed.
9.The internal lifts have been installed. However, testing of same is pending.
10.The fixing of Doors/windows is pending and is yet to be executed.
11.There is no working counter in the kitchen and same is yet to be executed.
Conclusion:
In terms of specific directions issued by the Hon’ble Authority vide interim order dated 14.09.2022. It is submitted that the inspection has been carried out in terms of approved layout plans which shows construction of 10 units, unit no. 5 being constructed on all three floors (as approved in layout plans). Since, no work in kitchen has been executed therefore, kitchens cannot be counted. However, as per approved layout plans 10 kitchens have been approved.
Consideration of facts and Analysis
We note that the Promoter Applicant was given first extension on account of COVID-19, First Wave on 05.06.2020 extending validity of registration upto 31.05.2021. The Promoter Applicant should have applied for extension beyond 31.05.2021, three months prior to the last date of validity of registration, giving reasons.
From the above, we note that
The Promoter Applicant has approached this Authority with delay for seeking extension.
The Promoter Applicant has failed to inform the Authority about change in sanctioned building plan and also about funding of project by giving required details in QPRs.
The Promoter Applicant has not created any interest of allottees as no unit in the project has been booked or sold.
The report of Mr. Rajpal Kaushal, Consultant (Engineer) shows that the project is in good progress and likely to be completed if extension is given.
Promoter Applicant is eligible for extension on account of COVID-19, Second Wave for 9 months without payment of any fee.
Considering the above, we order as follows:
Since, the Promoter Applicant did not inform this Authority about the deviations made from the sanctioned building plan i.e reducing the number of dwelling units from 16 to 10 and also about funding from M/s Panchsheel Reality and Developers Pvt. Ltd., a show cause notice be issued to the Promoter Applicant seeking explanation as to why action should not be taken against them under section 61 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter mentioned as RE (RD) Act, 2016) or Act). The office shall open a separate file for the purpose and put up before Authority by 31.01.2023 for consideration.
The validity of registration is extended upto 28.02.2022 is granted on account of Covid 19, Second Wave;
Further, extension is granted from 01.03.2022 to 31.12.2022 under section 6 of RE(RD) Act, 2016 as project is likely to be completed and as there is no interest of allottees involved at this stage.