Builder fined for not transferring land | mumbai | Hindustan Times
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Builder fined for not transferring land

mumbai Updated: Sep 19, 2011 00:57 IST
HT Correspondent

Taking a stern note of builders who fail to transfer land to co-operative housing societies, the National Consumer Disputes Redressal Commission, on Friday, levied a Rs2-lakh fine on a city-based developer who did not execute the conveyance deed in favour of a housing society it built more than a decade ago.

Conveyance deed is the final document a builder has to provide to a housing society while transferring the ownership of land on which the building is constructed.

"Equity demands that unscrupulous litigants who aim to deprive the opposite party of the fruits of the decree must be dealt with, with a heavy hand," the national commission observed, while referring to Atlanta Ltd, which constructed the five-storey Atlanta Arcade Premises co-operative housing society in Andheri (West) in 2000 but did not execute the conveyance deed.

In June 2007, acting on a complaint lodged by the housing society, a city consumer forum had directed the developer to execute the conveyance deed within three months and pay a compensation of Rs1 lakh to the housing society.

The society had also complained that the developer had failed to pay municipal taxes between 2000 and 2006 due to which water supply to the building was disconnected. The society alleged it had to spend Rs1,500 every day for a water tanker.

The developer first appealed before the State Consumer Commission, which upheld the decision of the city forum. The developer then appealed to the national commission.

On Friday, the national commission dismissed the appeal filed by Atlanta Ltd., saying there was no jurisdictional or legal error in the orders of the city forum and the state commission.

Out of the Rs2 lakh fine imposed, the developer will have to pay Rs1 lakh each to the co-operative housing society and to the national commission's Consumer Legal Aid Authority. The developer will also be required to pay the costs not covered by the Rs1 lakh compensation awarded by the city forum.