Mumbai: Developer fined Rs 2L for delay in handing over flat on time

  • Kanchan Chaudhari, Hindustan Times, Mumbai
  • Updated: Dec 10, 2014 21:52 IST

Holding the builder guilty of deficiency in service for failing to hand over a flat in Ghatkopar, the state consumer commission on Tuesday directed Vastu Developers to pay the flat owner Rs 2 lakh towards compensation.

Apart from asking the developer to give possession of the flat to the complainant within two months of getting the balance amount, the commission has asked him to pay Rs 50,000 towards litigation cost.

According to the complaint, Kamal Kale had booked flat no. 603 in Vastu Developers’ Urmi Chhya building in Asalpha village.

Of the Rs 25 lakh, Kale had paid Rs 15 lakh to the developer and was issued an allotment letter in August 2010.

Kale got a home loan from a co-operative bank to pay the balance amount. Meanwhile, the developer did not execute the sale deed or give the possession of the flat, she alleged. A year later, he issued a letter seeking Rs 55.19 lakh — more than double the agreed amount.

She then approached the state consumer commission seeking execution of the sale deed, possession of the flat and compensation for mental agony. Though the partners of the developer firm appeared before the forum, they did not file a written statement contesting the complaint.

In an ex-parte order, the state commission observed the partners of the firm failed to discharge their duty towards the complainant by not accepting the balance amount, failing to execute the sale deed and no giving the possession.

The commission ruled the developer failed to discharge his statutory obligation of executing the sale deed under Section 4 of Maharashtra Ownership Flats (Regulations of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, though a sumptuous amount of Rs 15 lakhs (exceeding 20% of the agreed price) had been paid by the buyer.

The commission has now granted the complainant a month to pay the balance amount and two months to the developer to execute the sale deed in her favour and give the possession of the flat, failing which the developer will have to pay a penalty at the rate of Rs 1,000 a day.

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