Pune builder fails to give flat; consumer forum orders Rs 4.75 lakh compensation to homebuyer

Vivek Binwal, a resident of Ghaziabad, filed the complaint under Section 12 of the Consumer Protection Act 1986

The Pune district consumer disputes redressal forum in its order dated January 1 has directed a Wagholi-based real estate developer to pay Rs 4.75 lakh compensation with 12 per cent interest to a homebuyer for deficiency of service. The forum also imposed additional cost of Rs 55,000 to be paid by the builder .

Binwal started to pay monthly instalments as the project was declared to be financed with 0% interest (PICTURE FOR REPRESENTATIONAL PURPOSES ONLY)

Vivek Binwal, a resident of Ghaziabad, filed the complaint under Section 12 of the Consumer Protection Act 1986.

Biwal in his complaint stated that after going through a newspaper advertisement published by the builder regarding their housing project, he decided to book the flat in the scheme. Accordingly, he booked a flat admeasuring 781 square feet for a consideration of Rs 18.50 lakh for which the notarised booking agreement was executed by the real estate developer on April 9, 2013.

Binwal started to pay monthly instalments as the project was declared to be financed with 0% interest. It was also assured by the builder that they will get the plan sanctioned in two-three months. The flat cost was including electricity and society formation charges. Binwal paid Rs 8.11 lakh towards the consideration of the flat. However, according to Binwal’s complaint, the builder accepted part consideration of the flat, but did not execute the registered agreement. Also, the developer had not taken the non agriculture (NA) and construction permissions. The agreement did not mention the date of possession and the builders did not commence the construction even after passing of a considerable period of time.

Later, on demand of Binwal and other buyers, the builder requested the homebuyers to give some time. After failing to commence the construction, the builder issued cheques to some of the buyers, but it bounced.

Binwal in his complaint stated that the builder indulged in unfair trade practice and violated provisions of Maharashtra Ownership of Flats Act (MOFA), 1963.

The forum comprising members Anil Jawalekar , SJ Dunakhe and president J V Deshmukh observed that more than sufficient time has been given to the builder, but the latter did not initiate construction of the project and likelihood of getting possession is unclear. Despite service of notice, the builder remained absent and therefore the matter preceded ex parte against them.