BEFORE THE HON’BLE NATIONAL CONSUMER DISPUTE REDRESSAL COMMISSION, DELHI

 

 

COMPLAINT CASE NO:-       /2008

 

 

IN THE MATTER OF:-

 

 

SOCIETY OF CATALYSTS                                                         

N-130, Panchshila Park,

NewDelhi-110017                                                                         

 

COMPLAINANT

 

VERSUS

 

CHAIRMAN, Greater Noida INDUSTRIAL

DEVELOPMENT Authority

169, CHITWAN ESTATE, SECTOR GAMMA

gREATER NOIDA  CITY, GREATER NOIDA, UP

 

                                                                   OPPOSITE PARTY

 

 

COMPLAINT UNDER SECTION 21 OF CONSUMER PROTECTION ACT, 1986

 

 

RESPECTFULLY SHEWETH:-

 

1) That the complaint is being filed under the provisions of Sec 2 (b) (ii) of the Consumer Protection Act, 1986 and that the Hon’ble State Commission may allow the case to be filed before it since the Complainant and both the opposite parties reside within its jurisdiction and the cause of action has also arisen within its jurisdiction.  

2) That the Complainant is a voluntary consumer association consisting of former IAS officers, IIT alumni, eminent lawyers and other well known public men. It is registered under the Society Registration Act, 1860 vide Regn No S-30781 of 1997. A copy of the Certificate of Registration is attached at Annexure 1. Amongst its objectives are the following:

1.     To become a part of Consumer Protection Movement for safeguarding the Rights of Consumers.

2.     To propagate, process and participate for Rights of Consumers under Consumer Protection Act and such as an NGO.

3.     To take up the cases of Consumers in various forums including Consumer Courts and bodies like ASCI, MRTP etc.

4.     To liaise with other Consumer bodies and Government Departments in furtherance of above said objectives.

5.     To file Public Interest Litigation (PIL) with various Courts for individual Consumers

3)  That the complaint is being filed on behalf of S/Sri Kamal Pande, Ex Cabinet Secretary, S Sen, ex Joint Director, CBI, Ashok Nath, ex Chairman, Delhi Financial Corporation, Chandra Mohan, Pr Secretary, Lt Gov, Delhi and 56 other residents of various localities of Great Noida, as per list attached at Annexure 2. The letters of authority of the persons are attached at Annexures  2-1 to  2-60 . The complaint is also being filed on behalf of and for the benefit of numerous other consumers, known and unknown, having the same or similar interest.

4)  That the said Society of Catalysts has authorized Sri Omesh Saigal, IAS (retd.), who is a former Chief Secretary of Delhi and former Secretary to the Govt. of India and is the Treasurer of the said Society to pursue this case and such like cases in the appropriate consumer forum/commission. A copy of the Authority letter from the President of the Society is attached as Annexure 3.

5)  That the Hon’ble National Commission has jurisdiction in the matter as the amount of compensation claimed is more than Rs one crore and the OP is having its head office in India.

6)  That the present complaint is being filed within the period prescribed u/s 17 of the Act.

7)  That the O.P has been set up under UP Industrial Area Development Act 1976 with the objective to acquire land and prepare the Master Plan for development of the Greater Noida area of the National Capital Region. It is also charged with the responsibility of demarcating and developing sites for various land uses and to sell these properties at a price to various consumers. It also has to provide infrastructure like power and water and other amenities in the areas developed by it. As a part of its functions, it makes allotments of plots/properties for various land uses such as industrial/ commercial/ institutional/ residential/group housing/ housing under various schemes advertised from time to time in various newspapers, magazines, brochures etc. The procedure for allotment and eligibility of the applicants are contained in the brochure of the schemes. The OP also has a web site.

8)   That over the last one and a half decade of its existence, it has allotted various residential plots for non commercial use, for group housing and individual housing, and also built properties like flats. It has developed several sectors like Alpha 1, Alpha 2, Beta 1, Beta 2, Gama 1, Gama 2, Delta 1, Delta 2 and so on. It has been ascertained by a quick sample survey by the Complainant-Society that over 50,000 persons have purchased plots/group housing/built properties or flats from the OP for a consideration that is of the order of several crores of rupees. The website of the OP claims that by 2021, the population of the area will go up to 12 lacs. The survey has also shown that many of the purchasers are senior citizens and retired officers of the government of India, including Judges, IAS/IPS officers and defense personnel. The survey further disclosed that most of these eminent persons decided to settle in Greater Noida because of the repeated assurances of the OP and his officers of international class facilities and amenities like uninterrupted power supply.

9)  The current web site of the OP has the following claim about Greater Noida:

“Get ready for a breath of fresh air...

in a city where the future is present and ultra modern infrastructure is ready and waiting for you. Come witness a glorious partnership of industry with nature, life with lifestyle and administration with enterprise.

Welcome to Greater Noida - world city where the grass is greener, the roads wider, the air cleaner, where power cuts are unheard of and proactive governance is a way of life.
No delays, no congestion, no problems.
Greater Noida, a world city planned with an obsession is ready to welcome you to the future”. (The underlining and highlighting is of the Complainant)

10)  That our survey further disclosed that most of the residents opted to move to Greater Noida area, despite its distance from Delhi and other options like Gurgaon and Noida being available, because of all these claims, especially the claims of ‘uninterrupted power supply’. This claim of ‘uninterrupted power supply’ has not just been made in the website now but has been repeated many times in the past in press advertisements inserted by the OP. A small sample of the press advertisements colleted by the Complainant Society during the survey are given at Annexures 4-1   to 4-18  .

11)  That during the survey by the Complainant Society it was disclosed by the residents that while initially the promise of a uninterrupted power supply was adhered to by the OP, but since 2003 there has been heavy load shedding leading to huge power cuts, unlike what the website claims. While enquiring into this aspect, the survey being carried out by a website ‘www.parichowk.com’, was brought to the Society’s notice. For the last one month or so the website was inviting residents of Greater Noida to bring to its notice the cases of load shedding. The data collated from the complaints of the residents over the period March 12 to April 2008 is as below:

Name

Address

Email

Locality

Powercut_date

From

To

Remarks

Date

Parichowk Dot Com

-

-

Alpha II

4/14/2008 8:22:30 AM

14:05

17:05

-

2008/04/14

Parichowk

-

-

-

4/12/2008 8:53:22 AM

14:05

18:05

-

2008/04/12

Parichowk Dot Com

-

-

-

4/12/2008 6:42:44 AM

9:05

13:05

-

2008/04/12

adite banerjie

Alpha I

adite@sify.com

/Alpha I

4/11/2008 3:35:15 AM

9:30

14:05

NPCL claims that its regular load shedding schedule is for 5 hours in the morning and 1 hour in the morning. However it never sticks to a timetable. For the last 4-5 days, power goes off at 7.30 am an

2008/04/11

Parichowk Dot Com

-

-

Alpha II

4/11/2008 10:11:13 PM

9:30

14:00

-

2008/04/11

shantonu sen

G 34 Beta 2

shantonu_sen@hotmail.com

Beta 2

4/10/2008 1:41:19 AM

7:30

8:30

This load shedding is in addition to the 4 hours regular shedding later in the day.

2008/04/10

 

Name

Address

Email

Locality

Powercut_date

From

To

Remarks

Date

Parichowk Dot Com

Alpha II

-

-

4/9/2008 7:35:01 PM

7:30

8:05

-

2008/04/09

Parichowk Dot Com

Alpha II

-

-

4/9/2008 7:35:27 PM

17:05

19:20

-

2008/04/09

Parichowk Dot Com

-

-

I Block

4/8/2008 11:04:45 AM

7:30

8:30

-

2008/04/08

Parichowk Dot Com

-

-

I Block

4/8/2008 11:05:13 AM

9:30

14:30

-

2008/04/08

yash negi

grren glades,ansal housing,psi I

9910234459,yash_negi88@yahoo.co.in

sector psi

4/7/2008 6:00:30 AM

4:00

6:00

there's a power cut at odd times....every day....don't what will happen during summers..!!!! u may call it a village of 21st century.....a HI-TECH GAON.....

2008/04/07

Nirmal Kumar

I-397 Delta-II

varshneyiet@rediffmail.com

Sector-Delta II

3/16/2008 10:21:24 PM

9:00

14:30

Even after this cut of 5 hrs, NPCL cuts power without any schedule. can compare like elecricity in any backward village.

2008/03/16

R.Srinivas

F-69,Gama-I

srinimetro@gmail.com

Gama-I

3/15/2008 12:05:25 AM

11:05

16:05

There is nothing new as power cuts are as usual.G.Noidaites have to get prepare for worst and development is going infull swing and power shortage will aggravate

2008/03/15

 

Name

Address

Email

Locality

Powercut_date

From

To

Remarks

Date

KNEUS

11, KNOWLEDGE PARK -1, GREATER NOIDA- 201 310

2322019/ 2322021

KNOWLEDGE PARK - 1

3/14/2008 12:34:34 AM

4:05

7:05

DAY TIME 4-7 HOURS NO LIGHT SUPPLY

2008/03/14

Indranil Banerjie

B 8

na

Alpha I

3/13/2008 10:55:24 AM

8:40

2:30

NPCL should surrender its electricity distribution licence and go back to selling Dalda in Kolkata's Burrabazar.

2008/03/13

S Mali

-

98189-0887

Alpha-I, Block

3/12/2008 10:31:32 PM

8:30

16:30

What will happen in summer?

2008/03/12

12) The information above has been summarized in the table below:

Date

Area

Hours of load shedding

20-4-08

Beta2/Alpha 2

3 hrs

17-4-08

Beta 2

8 hrs

16-4-08

Beta 2

7 hrs

14-4-08

Alpha 2

3 hrs

12-4-08

 

8 hrs

11-4-08

Alpha 1

4.30 hrs

11-4-08

Alpha 2

4.30 hrs

10-4-08

Beta 2

1 hrs

9-04-08

Alpha 2

30 minutes

9-04-08

Alpha 2

2 hrs

8-04-08

I Block

7.30 hrs

7-04-08

Ansal housing

2 hrs

16-03-08

Delta 2

5 hrs

15-03-08

Gama 1

5 hrs

14-03-08

Knowledge Park

3 hrs

13-03-08

Alpha 1

6.30 hrs

12-03-08

Alpha 1

8 hrs

 

13)  That these figures disclose that in the 16 days that data is available on the website, the total load shedding is of the order of 77 hrs i.e. a little less than 5 hours a day on the average. Since the data is of the pre-summer months, it will naturally be much higher in the coming months. Even at 5 hours a day, it comes to about 20%, considering that each day is 24 hrs.

14)   That these figures are correct is also clear from the admission made by the Chief Executive, NOIDA Power Company Ltd (NPCL), in his letter dated Nov 17, 2005 (copy at Annexure 5). It is stated in this letter, inter alia, that ‘until about 2 years before, the power supply was available as per demand, hence there was no need for load shedding…however, with the rapid overall growth of Greater Noida the demand of power has been constantly rising, however supply remained more or less constant, resulting into demand supply mismatch and load shedding across all segments of the consumers of the area”. The letter goes on: “To give you a snap shot of the current situation, while the prevailing demand is 65 MVA approx, the average supply is around 43 MVA….” It is clear that the figures given by him disclose a shortage of power of a little more than 30%, a figure which tallies with the figures given in the website. That this has been the position for the last three years is a reasonable conclusion to draw from the facts above and also that there have been cuts of at least 20% during the entire period of the last three years.

15)  That, it may be noted, NPCL, which has been given the right to supply the power in Greater Noida, has been promoted by OP and OP is also the Chairman of NPCL. It is clear that even should he seek to do so, it will not be possible for OP to shift the blame on this power company for this reason and also the reason that once the corporate veil is lifted NPCL and OP will be found to be one and the same person.

16)  That the survey by the Complainant Society showed that each of the fifty thousand odd households that have shifted to Greater Noida consume an average of 300 units of energy every month and more than two out of every five residents have an inverter installed in their home because of the continuous cuts in power supply. At a very conservative estimate, the cost of power in the inverter is about Rs 3 per unit more than the rate at which power is supplied by the power supplier since the conversion efficiency of the inverter is rarely more than 90% and there is the cost of the battery also, the life of which is rarely more than 2 years. Since about 20% of this power is coming from the inverter, it is clear that each resident has had to spend about Rs 180 per month extra due to the deficiency in service for the past three years. This means a total amount of Rs 6,450 for each resident who has an inverter. For all the estimated 20,000 residents who have inverters installed at their residences this cost will be  Rs 12.96 crores over the last three years; this extra amount has been spent because of the failure of the OP to live upto its contractual promise and assurance of providing an ‘uninterrupted power supply’ to the purchasers of plots, built up houses etc in Greater Noida.

17)  That Sec 2(i)(g) of the Consumer Protection Act, 1986 defines deficiency in service ‘means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service.

18)  That in its various advertisements in newspapers other media and through claims and assurances made in its website, the OP had clearly assured the purchasers of flats/plots etc of a reliable and uninterrupted power supply. This was proposed to be ensured by setting up a private power company which OP will promote. This assurance and promise is contained in the letter of the then Chairman, GNIDA, Sri Nripendra Mishra to allottees dated Dec 24, 1993 (Copy at Annexure 6). In this letter, the then Chairman stated in Para 10 that “to ensure uninterrupted and reliable power supply in Greater Noida, a New Power Company NOIDA POWER COMPANY LTD, was constituted as a joint venture project, which has started functioning and the Company formally took over power distribution from UP State Electricity Board on 15.12.93”. He goes on to state that “the company’s promoters, Greater Noida Industrial Development Authority and Cescon Ltd (RPG group of companies) also plan to install a power generation plant of 75 MVA in 1st phase.

19)  By his failure to comply with its assurance of ‘uninterrupted power supply’, the OP has committed breach of contract/promise and is thereby responsible for ‘deficiency in service’ as defined in the Consumer Protection Act, 1986 and is liable to pay compensation not just for the financial loss suffered by the consumers due to its negligence but also for the mental stress and harassment that they have had to undergo. This failure of the OP is compounded by his gross negligence of failing to install, even 15 years after the promise was made by its Chairman, a captive power unit of 75 MVA or of any capacity at all.

20)  That the Complainant would like the Hon’ble National Commission to order as under:

1)     Payment of compensation of the amount that the consumers have lost because of the deficiency of service of the OP in not providing ‘uninterrupted power supply’ as promised and forcing them to install inverters at heavy cost and incurring heavy losses. These losses amount to Rs 180 per month for each of the 20,000 consumers who have been forced to install inverters; i.e. a total over the last three years of Rs 6,480 each. The Hon’ble Commission may order for the payment of compensation of Rs 6,450 to each of the consumers named in para 3 above.

2)     The Hon’ble Commission may also order for the payment of an amount of Rs 12.90 crores to 20,000 odd consumers who are estimated to have inverters. This amount may be kept in the Consumer Welfare Fund till they can be identified and/or used for the welfare of consumers as per the rules of the said Fund.

3)     The Hon’ble Commissio