Mumbai: SCDRC awards 5 lakh compensation to home buyer

Mumbai: The state Consumer District Redressal Commission (SCDRC), Maharashtra, directed that a flat buyer be compensated with Rs 5 lakh for the mental agony they faced for not getting possession of the flat they had booked.

The order was passed on August 11 by Justice SP Tavade, president and AZ Khwaja, judicial member, SCRDC.

Ashwin and Alka Joshi, residents of Mulund, had booked a flat in a saleable component of an SRA redevelopment scheme. They booked a flat measuring 515.80 sq ft.

However, even after paying almost the entire amount, they did not get possession of the flat. The Joshis had paid a total of Rs 64.10 lakh, which included Rs 15 lakh that they had taken as bank loan.

When they did not get the flat, they complained that the developer should not have taken the money till the occupation certificate (OC) was in place and that the flat's possession should have been given on time.

M/s S Siddharth Constructions Co argued that there was no date given and that the Johis were informed in advance that being an SRA project, there would be a delay.

The commission observed that agreement may not have had a date but later correspondences did mention about it. It thus found deficiency in service and unfair trade practice by the construction company.