Agreement clauses should be as per law: state consumer commission

The clauses introduced in a purchase agreement by a developer cannot be contrary to the provisions of the Maharashtra Ownership of Flats Act (MOFA), 1963, the state consumer commission held on Wednesday.

The clauses introduced in a purchase agreement by a developer cannot be contrary to the provisions of the Maharashtra Ownership of Flats Act (MOFA), 1963, the Maharashtra State Consumer Commission held on Wednesday.

HT Image

Ruby Tower co-operative housing society at Kandivli (West) had approached the commission, alleging the developer failed to obtain completion and occupancy certificate and execute conveyance in favour of the housing society. The flats were handed over to individual buyers between 1994 and 2002, and the housing society was formed in 2005.

The society also complained of non-availability of regular water supply facility, non-installation of electric meters, lack of compound wall, entry and exit gates, parking lots and non-payment of various taxes, among others. The society said there were clauses in the agreements, which empowered the developer to use the balance floor space index (FSI) and transferrable development rights (TDR) on the property, which were against the provisions of the ownership Act.

The developer said the completion and occupancy certificate could not be obtained because the project work was not complete. The developer leveled a counter allegation that the society was trying to usurp the unutilized FSI of the land by insisting on conveyance.

The state commission accepted the argument made by the society and held the stipulations in the agreement for execution of conveyance deed, subject to utilization of entire available FSI or TDR, were unsustainable and unjustified.

The commission directed Treaty Constructions to pay Rs 48 lakh, including the refund Rs 26.25 lakh collected from members, interest at 9% per annum from October 2005 and litigation cost.