Building firm to pay over Rs. 11.6L of pending rent in SoBo redevelopment project

Building firm to pay over Rs. 11.6L of pending rent in SoBo redevelopment project

The Consumer Commission has also asked it to pay Rs. 15,000 as compensation for mental agony and litigation costs.

Staff ReporterUpdated: Tuesday, October 27, 2020, 12:06 AM IST
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A Consumer Commission has ordered a building firm to pay over Rs. 11.6 lakh of pending rent to a couple who had given away possession of their 1,107 sq. ft. South Mumbai flat for redevelopment to the former.

The firm was to pay their rent in an alternative accommodation during the redevelopment period.

The commission also ordered that it should not give possession of the flat promised to the complainants to anyone else.

The Grant Road residents had approached the commission in 2016 as the firm had not paid them the rent of the fifth year that the property was undergoing redevelopment.

It had paid rent for the first three years as per the agreement. It also paid the 30 per cent increased rent in the fourth year, but defaulted on payment of the fifth year’s rent - which as per the agreement, would be another hike of 30 percent.

The couple had also complained that the possession of the flat promised in the agreement to them was being given to another family.

They had sought that the developer be directed to pay the pending rent with interest and be ordered not to give possession of the promised flat.

The developer did not accept the commission's notice nor appear before it to put forth its defence.

Member DS Paradkar and President Sneha S. Mhatre said in their order that the firm did not fulfill the terms and conditions in the agreement and hence has given deficient service. They directed it to pay the pending rent of Rs. 9.42 laky with six percent interest per annum from 2016 when the complaint was filed before it.

The commission has also asked it to pay Rs. 15,000 as compensation for mental agony and litigation costs.

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