Pune: Ending a legal battle that lasted nearly 14 years, the National Consumer Disputes Redressal Commission (NCDRC) directed Trishul Builders and its proprietor, Hemant Budhiwant, to refund over ₹3.15 crore collected from 113 homebuyers after holding that the developer deceptively sold flats on land already acquired by the government for a percolation lake.
In its 98-page order delivered on July 1, a bench of Justice AP Sahi, president, and member Bharatkumar Pandya held that the builder was guilty of “deficiency in service” and “unfair trade practice” by accepting money despite knowing the project lacked a clear title and statutory approvals.
The complaint was filed in 2012 by Akhil Bhartiya Grahak Panchayat, Pune, and an ad hoc committee representing buyers who had booked flats in Shalini Lake View, Shalini Gardens, Shalini Heights and Shalini Hill View between 2009 and 2011.
The Commission found that the developer knowingly concealed that the land had been acquired by the government in 1978 and continued to market the project despite repeated refusals by planning authorities to permit residential construction.
“There is therefore no doubt... they had no sanctioned plan and no proof of a clear title over the land,” the Commission observed, adding that the builder had “clearly deceived the complainants” by promising homes on land over which he had neither legal title nor permission to build.
{{/usCountry}}“There is therefore no doubt... they had no sanctioned plan and no proof of a clear title over the land,” the Commission observed, adding that the builder had “clearly deceived the complainants” by promising homes on land over which he had neither legal title nor permission to build.
{{/usCountry}}The order noted that official communications in 2003 and 2009 had declared the land a non-development zone, while the irrigation department and Pune Zilla Parishad had repeatedly directed the builder to stop construction. One partially constructed building, Shalini Lake View ‘Sea’, was demolished by the Zilla Parishad in December 2010.
Rejecting the builder’s argument that the matter should be decided by a civil court, the Commission held that consumer forums were fully competent to examine unfair trade practices. It concluded that the buyers had been “deceptively trapped” into making payments that were unlawfully retained.
The Commission directed the builder to refund the entire amount paid by eligible homebuyers with 9% annual interest from the dates of payment. If the refund is not made within three months, the interest rate will increase to 12% per annum until payment.
The Commission, however, absolved the landowners of liability, noting that the complainants had not sought any substantive relief against them. The refund order will also not apply to buyers who had already received refunds or cancelled their bookings.