Maharashtra: Consumer Commission Pulls Up Builder Over Flat Delay In Virar Project, Orders Possession Or ₹30.6 Lakh Refund With Interest

Mumbai, April 29: The State Consumer Disputes Redressal Commission (SCDRC) has held a city-based developer, M/s Unique Land Realty, guilty of deficiency in service for failing to hand over possession of a flat in a Virar housing project within the promised timeline, directing it to either deliver the flat with an occupancy certificate or refund over Rs 30.6 lakh with interest.

In a detailed 10-page order, the Commission, presided over by Members Mukesh V. Sharma and Poonam V. Maharshi, rejected the developer’s objection to its jurisdiction, clarifying that remedies under the Consumer Protection Act, 2019 are “in addition to and not in derogation of” other laws, including the Maharashtra Ownership of Flats Act (MOFA).

Commission rejects builder’s plea

“The Commission is competent to examine deficiency in service relating to delayed possession in real estate projects,” the bench observed, dismissing the builder’s contention that such disputes fall exclusively within the domain of real estate regulatory authorities.

The complaint was filed by Vasai residents Kishor Pednekar and Sushma Pednekar, who had booked a 453 sq. ft. flat in the “Unique Corner Building No. 2” project in 2015 for Rs 34.01 lakh, with possession promised by December 31, 2015.

The couple paid Rs 30.6 lakh and availed a home loan, but possession was never handed over as the developer failed to obtain the mandatory Occupancy Certificate (OC).

Delay held deficiency in service

Examining the Agreement for Sale dated September 3, 2015, the Commission noted that the builder admitted construction was not completed within time and that the OC had not been secured. It held that without an OC, possession cannot be legally delivered, making it both a statutory and contractual obligation of the promoter.

“No cogent evidence of force majeure or lawful justification for delay has been produced,” the Commission noted, adding that delay in handing over possession after receiving substantial consideration clearly amounts to deficiency in service.

Rejecting the developer’s plea that the complaint was time-barred, the Commission ruled that the delay constituted a “continuing cause of action.”

Possession or refund ordered

The bench directed the builder to hand over peaceful possession of the flat within two months along with the OC, subject to the complainants paying the remaining Rs 3.4 lakh. It also ordered the developer to pay interest at 6% per annum on Rs 30,60,872 from the promised possession date till actual handover.

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Alternatively, if the buyers choose not to take possession, the developer must refund Rs 30.6 lakh with 12% annual interest from the date of payments, along with Rs 2 lakh as compensation for mental agony and Rs 25,000 towards litigation costs.

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