Cut in Fuel Prices, Subsidy on Cylinders: Easing the Burden

Cut in Fuel Prices, Subsidy on Cylinders: Easing the Burden

Cut in Fuel Prices, Subsidy on Cylinders: Easing the Burden

With the announcement by Finance Minister Nirmala Sitharaman of the cut in fuel prices, the citizens of India as a whole heaved a sigh of relief. With the price of petrol coming down by ₹ 9.5, diesel getting cheaper by ₹ 7, it is a sharp cut in central excise duty on fuel prices amid surging inflation.

Ms Sitharaman also mentions that the government will lose ₹ 1 lakh crore by taking the cut on central excise duties. The Minister also urged states to implement a similar cut and pass on the benefit to the common man. She also made an appeal to all the state governments, especially the states where reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man.

In addition, the government will also give ₹ 200 per cylinder subsidy to Ujjwala Yojana beneficiaries for 12 cylinders in a year. It will definitely ease some of the burden arising from rising cooking gas rates. The Finance Minister also said the gas cylinder subsidy will have a “revenue implication of around ₹ 6,100 crore.” 

At the moment, petrol is selling at over ₹ 100 in most parts of the country. The rates vary across states due to the value-added tax (VAT). India relies heavily on imports to meet its oil needs and the domestic petrol and diesel prices are linked to international rates. India’s wholesale and consumer prices accelerate at their fastest in years in the month of April. It even prompted the central bank to hike interest rates.

However with the cut the prices, steps have been taken to cushion the poor. This has indeed eased the burden of the people a little, amid growing prices. 

I hope you have loved reading about this topic, which closely concerns all of us as consumers. In the meantime, keep reading the articles we have brought you this month. We have FSSAI CEO’S article on Eat Right India, a discussion on term insurance, choosing the best detergent powders and many more. Do share your thoughts at info@consumer-voice.org.

Until then, happy reading!

Pallabi Boruah

Editor

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Choosing the Right Cookware and Tableware for Your Home

Choosing the Right Cookware and Tableware for Your Home

Choosing the Right Cookware and Tableware for Your Home

We take utmost precautions while handling food to prevent contamination or any food hazard. However, have you given a thought about the utensils in which it is cooked, served, or stored? In this article, we will discuss cookware and tableware made from different materials. We will also offer some suggestions that you must keep in mind when you buy them, and some precautions while handling them.

                                                                                                                          Richa Pande

Aluminium Cookware

Aluminium utensils are used very commonly in Indian households. They are inexpensive, light weight and easy to clean. Aluminium is a good conductor of heat, and its utensils conduct heat faster. But according to some recent research studies, its long-term use can have pathological effects on our body because aluminium has the tendency to leach with long term use. Leaching can often lead to critical conditions such as anaemia, dementia and osteomalacia, etc. Usage of aluminium foils also has been known to have some food safety concerns. It is important to note that leaching from aluminium utensils and foils while cooking depends on factors like temperature, medium cooking, and Ph of the food product.

Given below are some tips to reduce exposure to aluminium while cooking and storing food:

  • High- heat cooking in aluminium utensils should be avoided. Always cook at lower temperature.
  • Whenever it’s possible, avoid using aluminium foils for cooking and wrapping cooked food. Bee wax wraps are a better alternative to store your food.
  • Food items containing acidic items such as tomatoes, lemons, tamarind should never be cooked in aluminium utensils.
  • If you still wish to use aluminium, go for anodized aluminium. How is it different from regular aluminium ware? Anodized aluminium is treated with acidic solution that changes aluminium metal characteristics.  Likewise, anodized aluminium is easier to clean, have similar qualities to non-stick utensils. Chances of aluminium leaching from anodized aluminium ware as compared to regular aluminium ware is less. 

Stainless Cookware

Stainless cookware is inexpensive compared to other materials. Steel is durable, corrosion free, and easy to clean. Stainless steel doesn’t react with acids found in milk, meat, vegetables, and fruits. The heat is distributed evenly over its surface making it a good option for cooking many recipes.

Iron and Cast-iron Cookware 

Iron cookware and cast-iron cookware are both made from iron but cast iron is mixed with metal alloys. Iron ware is made of pure iron, which makes it usable for long term, but rust is a major concern with iron cookware. As it is pure iron, it may get rust and then it is not safe to cook food in such utensils. Special precautions must be taken if you wish to use iron cookware. On the other hand, cast iron cookware are better at smelting with metal alloys, eliminating the problem of rusting.

Glass Cookware and Tableware

Glass dishes are durable, non-toxic, and eco-friendly. Glass dishes are generally dishwasher and microwave safe. Glass container looks great in your kitchen, but you must be careful in using them as they can break if they fall. Unlike plastic containers, glass dishes are not associated with risks. Choose food grade glassware as it is prepared in high temperature and will prevent breakage. Element like lead and cadmium are used in glassware making process, so purchase glassware that is food-grade. Do not purchase glassware that has paint on the inner surface as they may have unhealthy chemicals that can affect the quality of your food. Some downsides of using glassware include uneven heat distribution.

Ceramic Ware

Ceramic is a non-reactive cookware. It has no added chemicals that can leach in your food.  It is non-reactive i.e., nothing reacts with it. The heat transfer is quicker and more efficient. These days aluminium ware with ceramic coatings is available. They are non-stick, the most important property of ceramic. Ceramic is smooth and it requires less oil or butter as compared to cast iron or stainless steel. They are light weight as the base is made of aluminium base and ceramic coating. Ceramic cookware is safe at higher temperatures than Teflon pans and pots. However, be aware while buying ceramic ware as they may be purely ceramic and may have used glaze to seal them which can further leach into your food. So, choose food-grade ware only.

Non-stick Cookware

Non-stick cookware is easier to clean. If dishes are prepared in non-stick cookware, they require lesser amounts of oil or butter for preparation. Different types of finishing and materials are used to make different non-stick cooking wares these days. Earlier, all the non-stick cookware was lined with Teflon. These days’ different non-stick wares are available in market such as ceramic ware. Yet Teflon cookware is very popular.  Traditionally, Teflon was prepared using a different formula. It used to have a chemical called perfluorooctanoic acid (PFOA), which was found to be associated with health conditions, including thyroid disorders, chronic kidney disease, liver disease, infertility, and low birth weight. Though now Teflon is usually termed safe for cooking, please note that it shouldn’t be exposed to very high temperatures. Cooking on high temperatures can break the coating or cleaning it roughly can also scrap its coating making is unsafe to use. At temperatures above 300°C, Teflon coating can start breaking down which might release toxic chemicals in the air. When these toxic fumes are inhaled, it can lead to flu-like symptoms, chills, fever, headache, and body aches.

Tips to handle Teflon ware safely

    • Don’t preheat an empty pan. 
    • Avoid cooking on high heat. 
    • Ventilate your kitchen. 
    • Use wooden, silicone spatula and ladles, as the ones made from metal can lead to scuffs and scratches on the non-stick surface, reducing the life of your cookware.
    • Gently wash pots and pans with Teflon coatings with a sponge and in soapy, warm water. Avoid using steel or scouring pads as they can scratch the Teflon coated surface.
    • Replace old cookware. When Teflon coatings start to visibly deteriorate with excessive scratches, peeling, flaking, and chipping, replace them with new ones. 

Melamine Cookware and Tableware 

Melamine can be only used to serve food and for eating. But it should never be used in a microwave to heat food. Avoid eating acidic food such as lemon, tomatoes, or tamarind in melamine ware.

Copper Cookware

Copper cookware conducts heat. Due to this, copper heats quickly and evenly, but it loses that heat just as fast. The base of pan is usually made of other metals like stainless steel with copper coating over it. Copper reacts to acidic foods and needs a greater level of care when cooking. To clean water stains on copper utensils, you can use vinegar. You can use peels of lemon and tomatoes to clean them.

Understanding the difference between Food Grade and Food Safe Cookware

Food grade means that the material is suitable to come into direct contact with food. Food safe means that the food grade material and finished product is suitable for its intended use and will not create a food safety hazard. A product is said to be food safe when it is declared safe to use for the specific purpose for which it is designed.

Identifying Food Safe Cookware and Tableware 

Food safe cookware and tableware can be identified with the help of this logo. The symbol for “food safe” indicates that the material used in the product is considered safe for food contact. The certification includes considerations like the temperature that the cookware will be used at, cleaning processes, etc.

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Eat Right India: Steadily Reforming India’s Food Ecosystem

Eat Right India: Steadily Reforming India’s Food Ecosystem

Eat Right India: Steadily Reforming India’s Food Ecosystem

Safe foods and healthy diets are critical in the context of India’s rising burden of food borne diseases, under-nutrition, micro-nutrient deficiencies and non-communicable diseases (NCDs) like hypertension, diabetes, heart related diseases, etc. According to the Burden of Disease study, 6 of the top 10 risk factors for burden of disease in India are food-related.  The economic cost of foodborne illnesses is estimated at 0.5% of the GDP.  

                                                                                             Shri Arun Singhal, CEO, FSSAI

This year’s World Food Safety Day theme- “Safer food, Better Health” is rightly set to draw attention and mobilize action to prevent, detect and manage foodborne risks and improve human health. The call to action on this year’s World Food Safety Day is a reminder that everyone including policy makers, food businesses, educational institutions and workplaces, and consumers play a role in keeping food safe. It emphasises on the need to prioritize food safety throughout the supply chain, from farm to table. 

Food safety is one of the determinant of a sound and cohesive healthcare system in a country. Safe food is essential to promoting human health and well-being and ending hunger, two of the 17 main UN Sustainable Development Goals (SDGs).This underlines the need to focus on preventive healthcare through ensuring safe, healthy and sustainable food for all people. It is in this context, that the ‘Eat Right India’ movement has been launched by Food Safety and Standards Authority of India (FSSAI) under the Ministry of Health and Family Welfare.  

Inspired by Mahatma Gandhi’s philosophy and habits of food and nutrition, the movement is envisioned as a transformative large-scale change initiative that combines regulatory, capacity building and empowerment approaches judiciously to protect and advance public health and improve quality of life of all people. Right food is the foundation for better life and its tagline, ‘sahi bhojan behtar jeevan’ (right food, better life) says it all. The movement is based on three key pillars of, ‘Eat Safe, Eat Healthy and Eat Sustainable’. Envisioned as a low cost, high impact collaborative and partnership based preventive health care strategy to promote consumption of safe and wholesome food, it requires interventions on both supply–side and demand-side, taken up together in a campaign mode. As foodborne illnesses and various diet-related diseases cut across all age groups and all sections of the society, the movement brings together food-related mandates of the agriculture, health, and environment ministries, and adopts an integrative or ‘whole of the government’ approach. Further it builds on synergies with flagship programmes like Ayushman Bharat, Swachh Bharat Mission, POSHAN Abhiyaan and Fit India movement to institutionalise preventive healthcare as a way of life. 

A series of initiatives aimed at improving food quality and safety have been launched under the aegis of Eat right India targeting both supply and demand side. To build capacity of food businesses, FSSAI initiated ‘Food Safety Training and Certification’ (FOSTAC) – a unique program to ensure that there is a trained and certified Food Safety Supervisor (FSS) on each food business premises. Given the large unorganized food sector in India comprising a range of food businesses from street food vendors, dhabas, eateries, etc., several benchmarking and certification schemes to improve food safety and hygiene standards are in place. These involve training of food handlers and audits of food businesses by third-party audit agencies. Schemes such as ‘Clean Street Food Hub’, ‘Clean and Fresh Fruit and Vegetable Markets’, ‘Eat Right Station’ and ‘BHOG (Blissful Hygienic Offering to God) for Places of Worship’ are targeted to clusters of vendors. For individual outlets such as restaurants, catering establishments, sweet and meat shops, the ‘Hygiene Rating Scheme’ has been introduced. 

Additionally, to create a culture of healthy eating habits across different settings like schools, workplaces, educational institutes, hospitals, etc., Eat Right School and Eat Right Campus certification programs have been launched. Under these initiatives, certification is awarded based on compliance to pre-defined benchmarks on safe, healthy and sustainable diets across these settings.  

FSAAI uses various tools and mediums to create awareness about eating right. To celebrate ‘Azadi Ka Amrit Mahotsav’, FSSAI is organizing “Eat Right Walkathon and Eat Right Melas” in 75 cities across India to commemorate 75 Years of India’s Independence. The events are aimed for massive outreach to propagate the message of Safe, Healthy and Sustainable diets. It promotes millets as a nutri-cereal, local & seasonal produce and variety of healthy oils for optimal health and nutrition.  The event kick-started in August 2021 and 26 such events has been organized so far.

FSSAI also releases ‘Myth Busters’ and ‘Guidance Notes’ for consumers from time to time to address any growing concerns related to food and clarify misconceptions at large. In addition to this, a pool of information including Pink Books for the Home Kitchens, the yellow books for schools, The Orange Books for the campuses etc., have been developed with the help of experts, nutritionists, doctors and chefs.  The Eat Right Toolkit has been developed for Health and Wellness Centers under the Ayushman Bharat to ensure message reaches the grassroots level.

For mass consumer awareness and bringing about a shift in eating behaviours, emphasis has been placed on encouraging healthy food choices. FSSAI launched the “Aaj Se Thoda Kam” mass awareness campaign to reduce salt, fat and sugar in diets, and Trans-Fat Free India@75 to eliminate trans-fats by 2022. Apart from this, FSSAI promotes a variety of foods considering the vast diversity in diet, culture, customs, etc. for wholesome nutrition. Citizens are nudged to make the right food choices and promote diet diversification with a variety of whole grains ranging from wheat and rice, which are commonly consumed, to millets and other indigenous grains for better nutrition. Large-scale fortification of 5 staples including rice, wheat flour, edible oil, milk and salt with micronutrients appear to be good vehicles to deliver nutrients to large sections of the population. Nudging consumers to eat right not only creates awareness but constantly reiterates the importance of ‘mindful’ eating to ensure a sustainable change in habits. 

To empower consumers to address adulteration, FSSAI has introduced The DART Book to check common food adulterants at home with simple tests. In addition, FSSAI has also launched mobile food testing vans, called Food Safety on Wheels (FSWs) to reach remote areas and conduct training and awareness activities as well.  

To encourage and support sustainable food practices to protect the environment, FSSAI is spearheading initiatives such as ‘Jaivik Bharat’ for easy identification of authentic organic food; ‘Save Food, Share Food’ to reduce food waste and promote food donation; ‘Safe and Sustainable Packaging in Food and Beverage Sector’ to reduce the use of plastics and Repurpose Used Cooking Oil (RUCO) for safe and healthy use of cooking oil and repurposing used cooking oil to make biodiesel/soap, etc.

 

The Eat Right India targets people across ages, gender, regions, and socioeconomic groups. With the joint efforts of all stakeholders in the food systems from production to consumption, the Eat Right India movement can go a long way in addressing the issues around food safety and nutrition in the country.

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Window Air Conditioners: A Buying Guide

Window Air Conditioners: A Buying Guide

There are various brands of air conditioners with large number of models focusing only on minor differences mainly in aesthetics, design, appearance, colour, shape and size, etc. It is very difficult and challenging for a consumer to choose a good air conditioner out of the huge variety of brands/ models. During purchase, one has to be careful about the selection of latest models too. Important criteria for selecting the right AC is mainly its energy efficiency ratio, power consumption and cooling capacity besides special features. A major deciding factor for consumers is whether you want a window AC or a split AC model or latest Inverter Type AC *(variable speeds). Though window units are cheaper and easy to install, split ACs are quieter, aesthetically more pleasing and provide better air distribution. But if there is a good provision for installing window category, go for window only. Globally windows ACs have almost gone out of production but in India we still have a good choice. Once you have decided to buy an air conditioner, a careful market study is required for which Consumer Voice has done some basic research.
Window air conditioners are quite popular because of their lower initial cost, compactness (single unit) and efficiency and ideal for small size rooms, bed rooms, small offices where provision of windows are already there to accommodate the unit. Window AC units are self-contained, single-unit air conditioners that are mounted inside an open window. Split type AC is very popular because it can be fitted in a room without having open up walls or windows to install AC. Split air conditioners are made up of two parts – an indoor unit and an outdoor unit that work together to cool the room. Usually, split ACs are faster at cooling, more energy efficient and quieter than window AC. Split air conditioners for domestic & small offices use come in the cooling capacity ranging from 0.75 to 3.0 tons. 

Room Size and Tonnage of Window AC 

Tonnage refers to the cooling capacity of the air conditioning system, where one ton is defined as the amount of heat required to melt one ton of ice in 24 hours. It is essential to choose an air conditioner with the right tonnage according to the size of your room.
Room Size Tonnage
>120 Sq. feet 0.75
120-150 Sq. feet 1.0
150-180 Sq. feet 1.5
180-220 Sq. feet 2.0

Type – Split or Window

Window ACs are usually cheaper and relatively easier to install, however, they are much noisier as compared to a split AC. Split ACs provide better air distribution, are more beautiful to look at, and provide comparatively faster cooling. Additionally, split ACs provide higher efficiency and are more suitable for long-term use. Both types of air conditioners are available in a large variety of designs and sizes.

Things to Check before Buying an Air Conditioner

  • Capacity: The capacity of the air conditioner should be considered depending on the floor size of the room for which the AC is required. A rough measure is that an area in range of 120-140 Sq. ft. area will need 1 ton, 150-180 Sq. ft. area will need 1.5 ton and 180-240 Sq. ft. area will need 2 ton cooling capacity air –conditioner. 
  • Energy efficiency: Air conditioners come with star rated energy efficiency ratings; which has been implemented by the Bureau of Energy Efficiency (BEE). Therefore, any unit with more stars will consume lesser electricity than one with a lower star rating. If the regular usage of ACs are more than 4 hrs/day, go for higher star rated (4-5) AC, else 3 star can serve your purpose. 3 star ACs are most popular as mid-range power saving gives consumers a great price advantage as compared to 5 star.  
  • Copper Vs Aluminium Coils: Since a few years, ACs also come in aluminium coils (condenser coils) where the cost is slightly lower but has much lesser life/durability. So do insist that condensers have copper coils and do not compromise on the cost and always insist for copper coil ACs. They have a much longer life and less leakage complaints.  
  • Installation & cartage: Window air conditioners are so simple to install that even a person without much skill can do it. While placing order, clear terms of payment (cash or cheque/draft) and installation charges if any, as it is generally included in the unit cost. Also, do insist for free home delivery while placing the order. 
  • After sales services: Look for a longer service oriented reputed brand which have the capabilities and good network to meet the servicing needs of your product. Ask your friends and relatives for feedback.  
  • Brand Selection: You should carefully choose an air conditioner brand which fulfils your need of maximum energy saving through highest EER, best cooling performance and extensive after sales service. 
  • ISEER: ISEER stands for Indian Seasonal Energy Efficiency Ratio. It is the ratio of total annual amount of heat that the equipment can remove from the indoor air when operated for cooling in active mode to the total annual amount of energy consumed by the equipment during the same period. Higher ISEER rating means a more energy-efficient air conditioner that can help you save on your energy bills in the long run. 
  • Cooling Capacity: Cooling capacity is the measure of a cooling system’s ability to remove heat. 
  • Power consumption: Power consumption denotes the electrical energy over time supplied to operate an electrical appliance.

Window Type Air Conditioners: Comparison at a Glance

 The survey of window type air conditioners was conducted in the 2nd week of May 2022.
Sl No. Brand Model Energy- Efficiency Ratio (EER) (W/W) Nominal marketing capacity (ton) Nose Level (dB) Annual Power consumption (KWH) Star Rating Retail price (Rs) Warrantee(Product+ compressor), year
1 Blue Star WFA518LL 3.40 1.5 55 1115 5 32990 1+5
2 Carrier CAS18ES3R30CX+ 3.60 1.5 38 1119 3 34499 1+5
3 LG PW-Q18WUZA 3.50 1.5 44 1106 5 38690 1+5
4 LG PW-Q18WUXA 3.26 1.5 44 1213 4 1+5
5 Lloyd   GLW18B3YWSES 3.03 1.5 52 1215 3 26140 1+5
6 Panasonic CW-LN182AM 3.00 1.5 56 1238 3 28400 1+5
7 Voltas 183 DZA 2.92 1.5 58 1338 3 28199 1+5
8 Hitachi RAW518HEDO 3.60 1.5 50 1134 5 34899 1+5
9 Voltas 185V ADA 1.5 54 1161 5 34999 1+5
10 Lloyd ‎GLW18B5YWGEW 3.37 1.5 52 1115 5 29990 1+5
11 LG  JW-Q18WUZA 3.50 1.5 44 1136 5 37790 1+5
12 Daikin FRWF50TV162 1.5 49 1265 3 35500 1+5
13 Panasonic CW-XN182AM   3.34 1.5 56 1169 5 32288 1+5
14 Whirlpool 41328 4.73 1.5 35 826 5 35990 1+5
15 Carrier ‎CAI18ES3R30F1 3.85 1.5 37 1035 5 36000 1+5
16 Hitachi RAW518KUD 3.35 1.5 50 1575 5 34899 1+5
17 Voltas 185 LZH 3.35 1.5 54 1155 5 28199 1+5
18 LG JW-Q18WUZA 3.50 1.5 44 1106 5 37790 1+10
19 Hitachi RAW518HEDO 3.60 1.5 50 1134 5 34499 1+5
20 Daiken FRWL50TV162 1.5 49 1265 3 35500 1+5
21 Lloyd GLW18B32WSEW 2.99 1.5 53 1269 3 30990 1+5
22 IFB CI2433E323G1 3.98 2.0 32 3600 3 46490 1+10
23 Panasonic CS/CU-NU24XKYWA 4.60 2.0 1044 5 54990 1+10
24 Hitachi RMRG524HEEA 4.70 2.0 37 1159 5 56950 2+10
25 Blue star IA524DLU   4.65 2.0 43 1087 5 58500 1+10
26 Carrier CAI24ES5R30F0   4.62 2.0 38 1048 5 57990 1+10
27 LG PW-Q24WUZA   3.50 2.0 44 1370 5 48390 1+10
28 Daikin FTKL71U   2.0 39 1373 4 61990 1+10
29 Samsung AR24BY4ANWK 4.12 2.0 45 1089 4 54990 1+10
30 Godrej AC 2T GIC 24LTC3-WSA Split 3S 3.74 2.0 40 1296 3 48609 1+10
Note: All models had copper condenser tubes. Prices may vary, therefore check latest prices at amazon.in or flipkart.com. 

Keeping a Reasonable Temperature

On a hot day – say 43 degrees C – you may be tempted to put the air conditioner way down to 20 degrees C to get the room cool as quickly as possible. But if you can cope with setting the temperature at 25 degrees C, you will save big on your energy bill. Each degree cooler, or warmer in winter, can add about 10 per cent to the running cost. The same principle applies in winter. If it’s 10 degrees C outside, try setting the indoor temperature to 18 degrees C rather than 25 degrees C.  Generally you’ll get better efficiency by aiming for a maximum temperature differential of about 8 degrees C. So, on a 35 degrees C day, set your indoor thermostat to 25 degrees C. Realistically, most people will still go for a cooler temperature. You can probably aim for a bigger differential if your house is very thermally efficient (well-insulated, double-glazed, etc.).
Star-rating labels: Once you’ve worked out what capacity you need, compare the star ratings of models of similar capacity. The more the stars (from 1 star to 5 stars), the lower the running costs and greenhouse gas emissions. Air conditioners come with star-rated energy-efficiency ratings; these have been standardized/implemented by the Bureau of Energy Efficiency (BEE), Govt. Of India. Therefore, any AC with more stars will consume less electricity than one with a lower star rating.

Tips for Optimal Use of ACs

  • Do not install AC units on walls that are exposed to direct sunlight through a major part of the day during summers. 
  • Reduce air-conditioning energy use by as much as 40 percent by shading your home windows and walls. Plant trees to keep the sun off your house.
  • Try turning your AC down at night and utilize the “sleep mode” which lowers the output on a timer.
  • One will use 3 to 5 percent less energy for each degree air conditioner is set above 25°C to provide the most comfort at the least cost. Keeping ACs at 24-26°C can save electricity.
  • Using ceiling fans allows you to set the temperature higher because the air movement will cool the room.
  • Clean the air-conditioner filter every month. Clean filters enable the unit to cool down quickly and use less energy.
  • Have your air conditioning unit checked if the Freon gas level is not correct, you will waste a lot of energy and your home will never be as cool as you want it.
  • The gaps around the windows and doors leads to AC loss. 
  • Buy Inverter or split ACs instead of window ACs. They cost more, but they are more energy efficient and consume lesser electricity.
  • Switch to evaporative coolers from air conditioners during hot/dry summer days.

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Choices for Homebuyers if Developers Fail to Give Possession

Choices for Homebuyers if Developers Fail to Give Possession

Choices for Homebuyers if Developers Fail to Give Possession

The Supreme Court, in the recent case of Experion Developers Pvt. Ltd. Versus Sushma Ashok Shiroor, decided on 7th April 2022 took a very liberal view in favour of home buyers who invested their hard earned money in a developers’ project but did not get possession within the stipulated time. 

It was made clear that the National Consumer Disputes Redressal Commission (NCDRC) had the power to give relief what the home buyer choses. The home buyer is free to make any request and the commission may grant the same if merits so permit.

Dr Prem Lata, Legal Head VOICE

The SC has allowed three fold choices to the home buyer who has not been given possession of their dwelling within the stipulated time frame. 

  1. The power to direct refund of the amount and to compensate a consumer for the deficiency in not delivering the apartment as per the terms of agreement is within the jurisdiction of the Consumer Courts. A consumer can plea for refund of the money with interest and compensation.
  2. The consumer could also ask for possession of the apartment with compensation. 
  3. The consumer can also make an appeal for both. If a consumer asks for refund of the amount, without an alternative request, the Commission will recognize such a right and grant “The freedom to choose the necessary relief is of the Consumer and it is the duty of the Courts to honour it.” 

The above order makes the position clear that home buyers can be given compensation in all the situations, whether it’s asking for refund with interest and compensation or possession with delayed compensation.

Objections Raised by Builder 

The objections raised by the developer were:

  • The consumer is entitled for delayed compensation only. Since the occupation certificate had been applied and would be obtained, he/she would be entitled for compensation for delay to the tune of Rs Rs. 4, 54,052.
  • 42 months period expired on 26-6-2016, “the trigger date for clause 10.1 is 26.12.2012, which is the date of execution of the apartment buyer’s agreement”. The Commission calculated 42 months from this period, which turns out to be 26.06.2016. Further, adding the grace period of 180 days, the time for delivery would expire on 26.12.2016.
  • Occupation certificate for Phase-I of the project had already been obtained on 06.12.2017, and application for occupation certificate for Phase-2, had already been made. In the affidavit of evidence, the developer contended that it secured the occupation certificate on 23.07.2018 and a notice of possession was issued to the Consumer on 24.07.2018. It was claimed that since possession can be handed over, the complaint must be dismissed.

NCDRC Orders 

The Commission, in its judgment dated 19.06.2019, allowed the complaint after referring to Clause 10 (relating to the project completion period), Clause 11 (relating to the possession and conveyance of the apartment), as well as Clause 13 (relating to delay in possession). The Commission found that the agreement is one-sided, heavily loaded against the allottee and entirely in favour of the developers. Following the decisions of this Court in Pioneer Urban Land and Infrastructure Ltd. v. Govind Raghvan, the Commission directed the developer to refund the amount of Rs.2, 36, 15,726 with interest @ 9% p.a. following Pioneer Urban Land and Infrastructure Ltd. v. Govindan Raghvan. Both the parties filed appeals against the above order by NCDRC. 

The developer filed the present Civil Appeal No. 6044/2019 against these findings of paying refund with interest when possession is offered and the consequential directions of the Commission.

The consumer also filed an appeal being Civil Appeal No. 7149/2019, challenging the Commission’s judgment to a limited extent for grant of an enhanced interest @ 24% p.a.

Objections Raised by Developers 

The decision of this Court in Pioneer has no application to the facts of the present case, as in Pioneer, the Court did not have to deal with delay compensation clause like in the present case.

Terms of the apartment buyer’s agreement alone would govern the relations between the parties. No prejudice would be caused to the consumer if he is asked to take possession of the property. 

Referring to the provisions of the Real Estate (Regulation and Development) Act, 20166 and particularly to the Regulations made by Haryana Real Estate Regulatory Authority, which were relied on in Pioneer case, the builder submitted that the consumer had elected to proceed under the Consumer Protection Act, 1986 and therefore the provisions of RERA Act will not apply and the Pioneer cannot be followed as a precedent.

The interest granted by the Commission is excessive in both the period of the grant and the rate of interest.

Issues before the SC 

  • Whether the Commission has the power under the Consumer Protection Act, 1986 to direct refund of the amount deposited by the Consumer with interest when the developer is ready to give possession. 
  • Whether the terms of the Apartment Buyers Agreement amount to an ‘unfair trade practice’ and whether the Commission is justified in referring the Pioneer Case which was mainly decided under the RERA Act.

Referred Cases 

In the case of Lucknow Development Authority vs M.K. Gupta, the Court held that when a person hires the services of a builder, or a contractor, for the construction of a house or a flat, and the same is for a consideration, it is a “service” as defined by Section 2(o) of the Consumer Protection Act, 1986. The inordinate delay in handing over possession of the flat clearly amounts to deficiency of service.

In Fortune Infrastructure v. Trevor D’Lima, the Court held that a person cannot be made to wait indefinitely for possession of the flat allotted to him, and is entitled to seek refund of the amount paid by him, along with compensation. The money deposited by him along with appropriate compensation.  

In the instance of IREO Grace Realtech (P) Ltd. V. Abhishek Khanna, a three-judge bench of this Court noticed the delay compensation clause, which is similar to the clause in the present case, which provided that the Developer would be liable to pay delay compensation @ Rs 7.5 per square foot which works out to approximately 0.9 to 1% p.a. The Court held that this clause is one-sided and entirely loaded in favour of the developer and against the allottee. The Court concluded that the powers of the Consumer Court were in no manner constrained to declare a contractual term as unfair and one-sided as an incident of the power to discontinue unfair or restrictive trade practices.

Real Estate (Regulation and Development) Act, 2016 and the RERA Act neither exclude nor contradict each other 

In terms of Section 18 of the RERA Act, if a promoter fails to complete or is unable to give possession of an apartment duly completed by the date specified in the agreement, the promoter would be liable, on demand, to return the amount received by him in respect of that apartment if the allottee wishes to withdraw from the project.

 Interpretation of Statutes When Statutes provide more than one judicial fora for effectuating a right or to enforce a duty-obligation, it is a feature of remedial choices offered by the State for an effective access to justice. Therefore, while interpreting statutes provisioning plurality of remedies, it is necessary for Courts to harmonise the provisions in a constructive manner. 

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