Pune builder fined ₹8.14 crore by National Consumer Commission

Following an order by the National Consumer Disputes Redressal Commission, a Pune builder will have to pay around Rs8.14 crores, with an additional compensation of ₹32.56 lakh, to two Aundh residents after failing to hand over a completed villa within the stipulated time.

The commission directed Marvel Omega Builders Private Limited to refund ₹8.14 crore, the amount that the complainants had paid, along with 10% annual interest since 2014 and ₹25,000 as litigation cost within three months.

The Aundh residents had booked a residential villa, three parking spots, and an open terrace for a total consideration of Rs8.31 crores. The agreement had been finalised on March 22, 2013. According to clause 5(b) of the agreement, the possession of the villa was to be handed on or before December 31, 2014.

When the developer failed to meet the deadlines, the complainants approached the National Consumer Commission, seeking a refund along with compensation. The developer opposed the plea, contending that the complainant had asked for additional work which caused the delay.

The Commission, however, noted that the additional work demanded would not have taken more than a few months. The work had come to a standstill due to a notice by the Pune Municipal Corporation, for which the complainants could not be held responsible, the Commission noted.

“Obviously the Corporation would have stopped the work on account of some deviation on the part of the opposite party (developer) and therefore it is the opposite party which would be responsible for the delay,” the Commission noted.

It has now directed the developer to refund the entire amount received from the Aundh residents along with interest at the rate of 10% per annum and pay them additional amount of Rs 25,000 as litigation cost within three months.