Mumbai: Consumer Commission directs Andheri developer to refund booking amount with interest

The state consumer commission has directed an Andheri-based developer to refund the booking amount of ₹25 lakhs with 12 percent interest along with ₹3.50 lakh for mental agony and litigation cost.

The builder had not given possession on the flat on time and said that the booking amount was forfeited because remaining consideration was not paid. It had also asked the commission to reject the complaint as the complainant was not a consumer after cancelling the flat's booking.

The order dated March 27 was passed by S P Tavade, president and S T Barne, judicial member of the State Consumer Disputes Redressal Commission (SCDRC) on a complaint by Thane resident Kaustubh Shirodkar against Andheri based M/s. Shreepad Developer.

Tenants had decided for redevelopment of their old building

Shirodkar had booked a flat measuring 404 sq. ft. in a new building known as Laxmi Krupa at Eksar, Borivali of which Shreepad was builder and developer. The Laxmi Krupa Housing Society was owner of the plot where the building was to come. The original building was in a dilapidated condition so the tenants had decided to go in for redevelopment and went for an agreement in April 2011.

In 2014, Shirodkar booked a flat costing ₹80.80 lakhs and paid ₹25 lakhs for the same in October 2014. No agreement of sale was executed but during the draft stage he was told that he would get the place in 18 months.

Builder forefited agreement

When the flat did not come by, he first approached Consumer Guidance Society of India and then Maharera which directed the developer to execute the agreement. But instead of executing the agreement, it forfeited the amount of the complainant. During this period, Shirodkar had to live on rent claiming ₹3.44 lakhs towards rent he paid over the period of time. When neither booking amount was refunded nor booking cancelled, he approached the consumer commission.

The builder contended before the commission that buyer is not a consumer as he had cancelled the booking of the flat, did not come with clean hands and did not comply with Maharera orders, did not pay the remaining amount and the GST and instead levelled false allegations. The builder said that other people were given posession of the flats and in Shirodkar's case, the amount was forfeited.

Commission: Direction to be complied within 30 days

During the hearing, the Commission observed that the complaint had waited and then approached RERA and sought a booking amount when possession of the flat was not given. It further added that though balance consideration was to be given, there was no date decided for it and nor was any proof given that the complainant was asked to make the balance consideration or take possession of the flat.

Stating that unilaterally forfeiting the amount instead of refunding when booking was cancelled amounted to deficiency in service, the commission ruled that its direction be complied with in 30 days.