Mumbai: Consumer Commission directs developer to give flat or refund as per buyer's choice

The State Consumer Disputes Redressal Commission (SCDRC) has directed a flat be given or money be refunded to a flat buyer as per their choice. Recent orders of the commission had left the choice to the developer instead of the buyer. While doing so, the Commission has also directed rupees one lakh compensation be given besides Rs 25,000 towards litigation cost and this was not paid in three month's time, the interest of 12 per cent will have to be paid on this too.

The order dated September 20, 2022, was passed by Justice S.P.Tavade, president, and S.T.Barne, judicial member of the SCDRC. The order was passed after Bhalchandra Keny and Sujata Keny, residents of Malad did not get the flat they were promised by one Sunil Aakrekar, the developer.

The Kenys had booked a flat in a plot of land that was to be developed in Palghar. While booking the flat, the opponent had assured them that the land would be converted to N.A. (non-agriculture). The Kenys booked a flat measuring 470 sq. ft. in the upcoming project in Palghar and for this, they paid the entire consideration of Rs 7.5 lakh in July 2015. An agreement was executed on stamp paper and said the developer said that he would register the same in a short period of time. However, it did not happen.

When there was no development, the buyers sent a notice to the opponent in June 2016. In August 2016, the opponent replied saying the work will start during Diwali in 2016. He also assured that if he failed to start construction, he would accommodate them by giving Row House or bungalow of the same cost.

The buyers also sought a refund or a flat in Palghar with a completion certificate and occupation certificate. By this time, the cost of the flat had increased to Rs 14 lakh. After filing a complaint, the opponent appeared before the commission but failed to file a written statement.

The Commission then passed an order stating that the opponent is liable to give a flat after getting a Completion Certificate and Occupation Certificate and by executing a registered Sale Deed within six months from receipt of this order or refund Rs 7.5 lakh with 12 per cent interest from July 2015 till realisation of the amount.