Consumer Connect: For Refund, It Is Mandatory To Raise Demand With Builder, Says Expert

When I booked a flat the builder promised me that I would get possession on or before December 1, 2018. But till today, construction is not complete. The builder now says that he will give possession by March 2024. Now I am in doubt whether to continue with the project or to withdraw. Can you please guide me?

Vinayak Vachane, Raigad

I can tell you the implications of both these options under RERA, but it is for you to take a decision. Your builder promised you possession by December 1, 2018, but even after four-and-a-half years, he has not completed the construction. This cannot be termed as ‘reasonable time’. As per Section 4(1)(C) of The Real Estate (Regulation and Development) Act, 2016 (RERA), the builder has to apply for registration of his project to the MahaRERA Authority, stating the time period in which he undertakes to complete the project. The builder can apply to RERA Authority for extension of time. But Section 6 of the Act makes it clear that the authority shall not permit such extension beyond a period of one year. You can thus complain to MahaRERA for cancellation of his registration due to this unreasonable delay.

If you wish to withdraw from the project, as per Section 18(1) Act, the builder is liable to return the amount which you have paid him, along with interest and compensation. But for getting such a refund along with interest and compensation, it is a mandatory that you have to raise the demand with the builder.

If you opt to continue with the project, the builder is duty-bound to pay you the interest for every month of delay, till the handing over of the possession, at a rate, which shall be MCLR (Maximum Cost of Funds-based Lending Rate) + 2%. But in such a case, you will not get compensation.

I purchased a washing machine from a shop at Mulund. From day one it is not working properly. There is water leakage. Also, the lid is not closing properly. The shopkeeper is not ready to replace the machine. Since I stay at Kalwa, I find it difficult to go to Mulund every time to pursue my complaint. Can you please guide me on how to proceed?

Gautam Dolas, Kalwa

As a first step, confirm if the machine is under warranty period. If so, you have to lodge your complaint to the manufacturer / their authorised service centre. If they fail to address your complaint, you can file one before the National Consumer Helpline (NCH) (helpline: 1800-11-4000 or 1915). If the complaint is not solved by NCH, you may also opt for pre-litigation mediation for an amicable solution, which will be cost effective and less time consuming. ‘SAMET’ (WA No 9860333963 / e-mail: mgpsamet@gmail.com), the mediation centre of Mumbai Grahak Panchayat is one such centre. If this mediation also fails to redress your grievance, you can file your complaint before the District Consumer Disputes Redressal Commission.

As per Section 34 (2) (c) and (d) the Consumer Protection Act, 2019, a complaint can be instituted in a district commission within the local limits of whose jurisdiction, the cause of action, wholly or in part, arises or where the complainant resides or personally works for gain. Thus, since you are residing at Kalwa, you can file your complaint before the Thane District Consumer Disputes Redressal Commission.

I have installed an inverter at home. It is an assembled product. I have an annual maintenance contract with another service provider, recommended by the seller. Since the last few months, the inverter has stopped functioning. Due to frequent electricity fluctuation in my area, non-functioning of the inverter has caused damage to my electronic goods. I came to know that the inverter needs cleaning and servicing every three months, which my service provider did not tell me. He has not come to my place for servicing / cleaning, etc, even once for the last one year. Who is responsible for the losses suffered by me? The seller or the service provider?

Yasin MS, Bhiwandi

You mentioned that you have installed an assembled inverter, but you have not made it clear whether it was assembled by the seller himself or by a different person (manufacturer). The Consumer Protection Act, 2019, is very specific about fixing the liability on the manufacturer, seller and the service provider. The manufacturer can be held liable under Section 84 of the act, if there are manufacturing defects or he fails to give adequate instructions about correct usage to prevent any harm.

Section 85 of the act has fixed the liability on the service provider, if the service provided by him is faulty or imperfect or deficient or inadequate in quality, nature or manner of performance which is required to be provided by or under any law or contract or otherwise; or there was an act of omission or commission or negligence or conscious withholding of any information which caused harm; or his failure to issue adequate instructions or warnings to prevent any harm; or the service did not conform to express warranty or the terms and conditions of the contract.

Whereas Section 86 says that the seller can be held responsible if he did not pass on the warnings or instructions regarding proper usage of the product while selling such product and such failure was the proximate cause of the harm.

Thus, if there are no clear instructions on the product manual about the required servicing, and the seller also did not tell you about the requirement of such servicing, in such a case, along with the service provider, even the manufacturer and the seller can be held responsible.

(Dr Archana Sabnis is an expert on consumer laws who is practising at consumer disputes redressal fora at district, state and national levels since 2000. She is on the panel of conciliators of MahaRERA and is associated with the Mumbai Grahak Panchayat.)

Published on: Monday, September 04, 2023, 12:53 PM IST