Palghar: Housing society scores big win against developer

In a significant ruling by the SCDRC, a developer was ordered to pay Rs 84.45 lakh, among other costs, towards the rehabilitation of the Palghar-based project and execute the conveyance deed.

56 residents of Anora Towers bought the flats for Rs 23.56 lakh, after which a cooperative housing society was registered in December, 2019.

However, the flat buyers were dismayed as they gradually found that their dream homes lack several facilities which were promised by the developer, Anora Homes. The problems ranged from improper water connection, sub-standard construction to pending execution of conveyance deeds.

Their grievances to the builder fell on deaf ears, said the society, which then resolved to take legal recourse.

First, it appointed a registered civil engineer who gave a report that the construction was sub-standard. Then, the society approached the SCDRC and sought Rs 8 lakh compensation from the developer to all members.

However, Anora Homes contended that as the agreement with the society members, they had agreed to execute conveyance deed after the formation of a federation. It also sought for not counting on the civil engineer's report.

The society filed an affidavit of evidence, which provided bills of the expenses incurred by society, the correspondence with the developer and municipal bodies about the shortage of water supply.

The SCDRC observed that the correspondence reveals that even the electric or plumbing work was not done as expected. On the pending execution of conveyance deed, it held, “It's necessary to point out that such terms and conditions, which were contrary to the provisions of Real Estate Regulatory Act (RERA), were not at all acceptable. The opponent (developer) was under obligation to execute the conveyance deed in favour of the society.”

Passing the order on September 28, the SCDRC ordered to execute conveyance deed within a period of three months of the order, Rs 84.45 lakh towards rehabilitation as per civil engineer's report and carrying out required repairs.

It also directed to refund Rs 3.75 lakh with nine per cent interest, give Rs five lakh towards mental agony and Rs 50,000 towards litigation cost.