Developer to pay `8.6 lakh to society for not giving amenities

A city-based builder has to pay Rs8.60 lakh to a cooperative housing society for failing to provide the promised amenities. The builder has also failed to obtain Occupancy Certificate (OC) and to execute conveyance in favour of the society. Kanchan Chaudhari reports.

A city-based builder has to pay Rs8.60 lakh to a cooperative housing society for failing to provide the promised amenities. The builder has also failed to obtain Occupancy Certificate (OC) and to execute conveyance in favour of the society.

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The Mumbai Suburban District Additional Consumer Forum has directed Sairaj Builders to reimburse an amount of Rs4.80 lakh spent by Shantiniketan Cooperative Housing Society at Dahisar (East) towards amenities that were promised by the developer, but not provided.

The developer has also been directed to pay Rs20,000 towards compensation for failing to convey the property in favour of the housing society, and cost of the litigation.

Besides the forum also asked the developer to pay interest at the rate of 9% per annum on aggregate amount of Rs5 lakh from June 2004 when it approached the consumer forum.

The bench comprising forum president JL Deshpande and member Deepa Bidnurkar concluded that the developer had failed to fulfill the promises he had made before selling flats to prospective purchasers.

The forum also found the developer at fault for failing to fulfill his obligation of obtaining the OC from the Brihanmumbai Municipal Corporation (BMC) before allowing purchasers to occupy their flats.

The forum also held the developer guilty of deficiency in service for failing to execute conveyance and transfer the property in favour of the housing society although provisions of the Maharashtra Ownership of Flats Act mandate builders to do so within four months of formation of the society.

Apart from ordering the developer to reimburse the society, the consumer forum also directed Sairaj Builders to obtain the OC.