Builder told to refund advance at market rate | mumbai | Hindustan Times
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Builder told to refund advance at market rate

mumbai Updated: Feb 25, 2011 01:38 IST
Abhishek Dandekar

A consumer court, last week, directed a developer to refund the token amount of a prospective flat buyer in proportion to the current rates after the developer failed to deliver the flat on time.

The Mumbai suburban consumer disputes redressal forum directed Sharma Realty Pvt Ltd to refund Rs10.67 lakh against an amount of Rs3.27 lakh received from the flat purchaser, Pramila Krishnakumar.

In May 2003, Krishnakumar booked a flat admeasuring 780 sq ft in Sharma Residency at Bhandup and paid Rs3.27 lakh to the developer. The developer promised to hand over possession of the flat to her within 18 months, but could not construct beyond the foundation.

Krishnakumar moved the consumer forum in June 2008 after the developer failed to give her possession of the flat. She sought possession of the ready flat within a stipulated time and also the money spent by her on a rented accommodation since January 2005, which is when she was expected to get the flat.

In defence, the developer contended that the delay was due to reasons beyond their control. They said the building could not be completed due to a dispute with the original landowner.

Later, when the developer offered to return the token amount, Krishnakumar sought the refund in proportion to the current market rate of the flat.

The forum found out that she had paid 22.82% of the flat priceand directed the developer to pay her Rs10.67 lakh, 22.82% of current market price of the flat — Rs 46.80 lakh.