Mumbai: 'Give flat or refund deposit', says Consumer Commission to Malad developer

The order dated August 24, 2022, was passed by Justice S. P. Tavade, president and A. Z. Khwaja, judicial member of the Commission.

Staff ReporterUpdated: Sunday, September 04, 2022, 08:13 AM IST
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The State Consumer Disputes Redressal Commission has directed a developer to give possession of the flat within six months of its order after taking the remaining payment or refund the amount with 12 per cent interest to the buyer. It has also alternatively asked the developer to pay Rs. 1 lakh compensation for the mental agony and Rs. 25,000 towards the cost of litigation.

The order dated August 24, 2022, was passed by Justice S. P. Tavade, president and A. Z. Khwaja, judicial member of the Commission.

The order was given on the complaint of Mrs Deepali Varasia and Sanjay Varasia, residents of Malad. The duo had booked a flat with Crystal Homecon Pvt. Ltd. and their directors who were to construct a building in Thane. The Varasias booked a flat measuring 460 sq. ft. on the first floor of the upcoming building. The flat was to be a one-bedroom-hall-kitchen for a total consideration of Rs 14.50 lakh. The initial value of the flat was pegged to be Rs 18 lakh which had reduced to Rs 17 lakh before the above amount.

According to the couple, a part consideration of Rs 3.09 lakh was given but despite paying the amount, the builder has not yet begun the construction even though an allotment letter was given in February 2015. When the complainants checked again, in October 2015, they got a letter from the opponents assuring that the project will be completed soon. The complainants later got to know that the plot on which the construction was to take place did not belong to the opponents nor did they have the proper rights to develop the property.

After several follow-ups, the opponents refunded Rs 25,000 to the Varasias and promised to refund the balance amount. When the flat or the amount did not come, a complaint was filed stating there was a deficiency in service.

The complainants wanted either the possession or refund of Rs 2.84 lakhs along with compensation and cost. During the hearing, the opponents remained absent and did not file a written version of their say.

All evidence adduced by the complainants went unchallenged as opponents did not appear or place a version on record as per the order of the Commission.

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