Mumbai, May 28: The Maharashtra State Consumer Disputes Redressal Commission has directed a Mumbai-based developer, Azure Tree Township LLP, and a Mira Road-based cooperative housing society to jointly pay over Rs 3.6 lakh, along with interest and litigation costs, to a 75-year-old Mira Road resident after holding them guilty of deficiency in service and unfair trade practice in a prolonged housing dispute spanning more than 13 years.
Additionally, both the developer and the society were jointly directed to pay Rs 2 lakh as compensation for mental agony and Rs 50,000 towards litigation costs to the complainant.
Commission cites prolonged harassment
The State Commission, while partly allowing the complaint filed by senior citizen Parshotam Dass Jindal against Azure Tree Township LLP and the Srishti Building No. 350 Co-operative Housing Society Ltd, maintained that the senior citizen was definitely subjected to mental agony and harassment, which was not limited to months but continued for 13 long years.
“As regards compensation for mental agony and harassment, not for months, but for 13 long years — at the hands of the very developer from whom he bought his home and the very Society of which he is a member. He has had to attend commission and plead his case repeatedly before multiple forums, all while the Opponents enjoyed the fruits of their illegal conduct. Such conduct deserves to be strongly deprecated,” the order copy reads.
According to the complaint, Jindal had purchased a flat in the Mira Road housing complex in 2009 for Rs 37.25 lakh and took possession in October 2011. He alleged that the builder delayed the formation of the cooperative housing society, illegally retained control over the building, arbitrarily increased maintenance charges, failed to refund a security deposit, and collected property tax without depositing it with the Mira Bhayandar Municipal Corporation (MBMC).
The commission noted that the developer was statutorily required under the Maharashtra Ownership Flats Act (MOFA) Rules to form the society within four months of occupation of flats, but the society was registered only in April 2013, over 16 months beyond the deadline.
Builder and society held liable
The bench of Presiding Member Mukesh V. Sharma and Member Poonam V. Maharshi observed that the builder continued to manage the building without lawful authority and increased maintenance charges from Rs 3 per sq ft to Rs 5 per sq ft from September 2012, amounting to a 60 per cent increase without the consent of members.
The commission further held that the developer had illegally retained an interest-free security deposit of Rs 44,460 collected at the time of possession and failed to deposit Rs 5,246 collected as property tax with the MBMC.
Coming down heavily on the housing society, the commission observed that it had continued to reflect “wrong and inflated arrears” against the complainant and imposed penal interest despite acknowledging in its own correspondence that a credit of Rs 39,000 was due to him.
The commission held both opponents guilty of deficiency in service and unfair trade practice, observing that the complainant, a pensioner and senior citizen, had suffered “immense mental agony, harassment, humiliation and financial loss” for over a decade.
Refunds and corrections ordered
The commission directed the developer to refund Rs 62,442 collected towards enhanced maintenance charges, Rs 44,460 towards the security deposit and Rs 5,246 collected as property tax, all with 12 per cent annual interest. It also ordered the developer to clear all pending MBMC arrears relating to the complainant’s flat.
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The housing society was directed to rectify the complainant’s maintenance account, remove alleged illegal arrears of Rs 5.37 lakh, provide credit of Rs 39,000 with interest, and issue a corrected maintenance bill within 30 days.
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