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

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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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