industry

NCDRC orders M3M to stop the construction of ‘illegal tower’ in Gurgaon


The National Consumer Disputes Redressal Commission (NCDRC) has ordered realty developer M3M to halt the construction of one of the residential towers of M3M Merlin project in Gurugram as the building was not included in the initial layout plan.

A complaint was filed by around 300 homebuyers with NCDRC. The complaint was filed by those that were allocated homes in the first 10 approved towers.

“Going for a new tower is a clear deficiency of service in terms of the Consumer Protection Act, 2019 and Haryana Apartment Page Ownership Act, 1983. It is another matter that if the builder had obtained the consent and then applied for change in the site plan along with permission for a new tower, it would have been in order as per the statutory provision,” the NCDRC has said in the order.

“Having not obtained this consent, we take the construction as a violation of the aforementioned statutes. In view of the aforesaid discussions, we deem the construction of Tower 11 as illegal and direct the parties not to proceed with its construction,” the order reads.

M3M, in its reply to the consumer forum, had said that with respect to construction of the 11th tower, the layout plan was sanctioned by DTCP in 2014 wherein EWS area was shifted to another location in the licensed area and the area marked for EWS was reserved for future development.

“M3M has high regards for NCDRC. However, we believe that the facts have been falsely presented against M3M by the complainants. We now propose to take this matter further for justice,” said an M3M Spokesperson.

The complainants have said that while the project was supposed to consist of 10 residential towers, the builder has now proposed construction of a new tower, with no prior intimation or consent of the earlier buyers.

“On the issue of defects in construction of the apartments and towers in the project, the builders are directed to appoint a statutory approved architect and an engineer within a period of 15 days, who will submit a report within one month on the actual position on ground,” the forum has said in the order.

The complainants submitted that approximately, Rs 32 crore was demanded by Directorate of Town & Country Planning (DTCP), Haryana from M3M towards External Development Charges (EDC) and Internal Development Charges (IDC), whereas the amount actually collected from them is in excess, as the agreement executed with each complainant / apartment owner stated that the EDC/IDC shall be applicable at the rate of Rs 395/- per sq. ft

“This is a path breaking judgment of the National Commission which has protected homebuyers from the oppression of influential builders and restored their faith in the judiciary of the country. It also shows that if consumers are aware of their rights, no one can take them for granted,” said Aditya Parolia, partner at PSP Legal.

“Suo-motu cognisance should also be taken by the authorities and investigations to be launched, as to how permission of such an illegal tower was given without due compliances and strict penalty should be imposed on the builder. Lastly, excessive collection of EDC-IDC and non-refund of IFMS has become quite rampant these days which should be checked,” said Parolia.



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