HindustanTimes Thu,31 Jul 2014

Builder to pay Rs. 50 lakh for failing to deliver flat

Kanchan Chaudhari, Hindustan Times  Mumbai, October 13, 2012
First Published: 01:15 IST(13/10/2012) | Last Updated: 01:16 IST(13/10/2012)

Maharashtra State Consumer Disputes Redressal Commission on Friday directed a builder to pay Rs. 50 lakh compensation to two brothers for failing to handover a flat to them - as agreed by the builder in lieu of development rights of a land plot at Andheri (East) owned by their late mother.


In March 2000, the builder - Build Well Constructions entered into an agreement for development of a plot owned by Maureen Crasto, mother of complainant brothers, Gilroy and Floyd. Under the terms of the agreement, the builder was to handover four flats, each admeasuring 700 square feet, along with four parking garages to them in place of development right of the plot.

But, the builder handed over only three flats and three garages to them in December 2005, compelling the brothers to approach the consumer commission, seeking direction to the builder to handover the fourth flat as per the agreement or pay them Rs. 50 lakh as compensation.

Build Well Constructions challenged the complaint claiming they were required to incur an additional expenditure of Rs75 lakh for obtaining necessary permissions from authorities, as the Crastos failed to provide the property card of the plot and because of which they could not utilise the entire Floor Space Index.

The consumer commission, however, found that since the power of attorney was executed in favour of the builder, he could have easily obtained copy of the property card. Therefore, his grievance about incurring additional expenditure was devoid of any substance. The commission maintained that there is no reason for the builder to not hand-over the possession of a fourth flat and garage.

It has directed the builder to pay Rs. 50 lakh to the complainant brothers within 45 days.

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