Consumer panel directs Wave Group to refund homebuyers

The National Consumer Dispute Redressal Commission has asked the Wave Group’s Wave Mega City Centre to refund the investment made by at least 34 homebuyers, who had bought flats in Amore housing project in Noida’s Sector 32, which the developer failed to deliver even after seven years from the proposed date of hand over of the dwelling units.

The Wave Group will have to release a refund of at least 50 crore, including an interest rate of 9% on the investment made at the time of booking the flats in the project that was launched in 2010-11.

The decision of the commission, announced on August 4, comes in the wake of a petition filed four years ago by Wave City Centre homebuyers’ association, which alleged that the developer — Wave Mega City Centre –failed to live up to the conditions of delivery, quality of services and construction timelines made in the builder-buyer agreement.

Allottees of the project had booked 2BHK, 3BHK and 4BHK units by making investments in the range of 88 lakh to 2 crore in 2012 with the assurance that they will be getting the possession of their dwelling units from 2015 onwards.

In July 2018, the Wave City Centre homebuyers’ association filed a petition under Section 21 of the Consumer Protection Act, 1986, against Wave Megacity Centre Private Limited seeking relief and compensation alleging unfair trade practices and deficiency in service in relation to the super premium projects–Amore and Trucia–in Sector 32.

Homebuyers have raised complaints about Amore and Trucia housing projects, both of which are being developed by Wave Mega City Centre. Listing out the deficiency in service, homebuyers said there is no provision for water supply, the realtor did not obtain the occupation certificate, left the construction of Amore tower midwayand only five floors have been built in Trucia tower and work has been kept on hold for many years.

Hearing the grievances of the homebuyers, Subhash Chandra, the commission’s presiding member, asked the Wave Group to either immediately refund the investment of the homebuyers with 9% interest or pay 12% interest on failing to adhere to the commission’s order.

“I am therefore of the considered view that the complainants…excluding those who have settled their grievances with the opposite party are entitled for refund of the respective amounts deposited by them with simple interest in the form of compensation at 9% per annum from the respective dates of deposit till the date of payment within a period of eight weeks from the date of passing of this order, failing which the amount shall attract simple interest at 12% per annum for the same period,” said the order.

“The complainant (homebuyers’ association) shall also be entitled for a cost of 50,000,” said order.

The commission said, “It is manifest and admitted that the project has been inordinately delayed by the opposite party. There is neither a completion certificate nor an offer of possession even on date. Deficiency in service on the part of the opposite party in handing over possession to the allottees in the project in “Amore” is therefore evident and confirmed…,” said the order.

“We hope this order helps us get justice and the realtor honours the order and repays the investment with the interest without delay,” said Anshuman Jain, an allottee of Amore housing project.

“We are in the process of evaluating the order in detail and will soon decide the next course of action,” said a spokesperson of Wave group.