Mumbai: Mira Road Builder Sentenced To 2 Years In Jail For Defying Consumer Commission Order For Over 8 Years

Mumbai, June 20: The Maharashtra State Consumer Disputes Redressal Commission (MSCDRC) has sentenced Mira Road builder Ajay Shah, the proprietor of Supreme Developers, to two years’ simple imprisonment and imposed a fine of Rs 10,000 for wilfully failing to comply with a consumer commission order passed more than eight years ago.

The commission, in its order, maintained that the complainant had successfully proved before it that the developer was guilty of failing to abide by its directions.

“It is proved that the respondent/accused has not complied with the order and the order has reached finality. The complainant has proved that the accused has committed the offence beyond reasonable doubt. Nothing has come out in the cross-examination of the complainant to rebut the allegations made by the complainant pertaining to the commission of the offence. Therefore, it is proved that the accused has committed an offence under Section 27 of the Consumer Protection Act, 1986, and the accused is guilty of the offence,” the order copy reads.

Consumer complaint and commission order

The order was passed in an execution application filed by complainant Vipeen B. Rawat against M/s Supreme Developers and its proprietor Ajay R. Shah. The execution proceedings arose from a consumer complaint decided by the State Commission.

In its 2018 judgment, the commission had directed the builder to execute a registered sale deed and hand over possession of Flat No. 902 in the Supreme Heights project at Mira Road upon payment of the balance consideration by the complainant.

Alternatively, the builder was directed to refund Rs 6.54 lakh paid by the complainant along with 12% annual interest from December 11, 2011, until realisation. The builder was also ordered to pay Rs 1 lakh as compensation for mental agony and Rs 25,000 towards litigation costs.

According to the commission, copies of the 2018 order were duly served on the respondents in August and October 2018.

However, despite having knowledge of the order, the builder failed to comply, prompting the complainant to initiate execution proceedings under Section 27 of the Consumer Protection Act, 1986.

Commission finds wilful default

During the proceedings, the commission noted that the builder had neither challenged the original order nor complied with it. Evidence showed that the project remained incomplete due to litigation, making it impossible for the builder to hand over possession of the flat. The commission held that the respondents had wilfully defaulted in complying with the final order.

The State Commission, presided over by President Justice S.P. Tavade and Member V.C. Premchandani, maintained that the builder had committed an offence under Section 27 of the Consumer Protection Act, which provides for imprisonment and fines for non-compliance with consumer court orders.

The commission found that the complainant had proved the offence beyond reasonable doubt and that the respondents were guilty of deliberate disobedience.

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The complainant had pleaded for the maximum punishment of three years along with a fine. However, as the developer submitted that he had paid a certain decretal amount to the complainant and was willing to comply with the impugned order passed in the original consumer complaint, the commission showed leniency by sentencing the developer to two years’ simple imprisonment along with a fine of Rs 10,000.

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