Mumbai: The District Consumer Disputes Redressal Commission, Mumbai suburban, has directed a developer to accept the remaining price of a flat in Palghar from a buyer or refund the amount she had paid them.
The commission has set the refund amount at ₹9.76 lakh, including 18% interest. If the developer does not provide the flat or the refund within two months of the order, additional 9% interest will have to be paid on the amount refunded.
Deficiency in service and unfair trade practice
After accepting 50% (₹5.85 lakh) of the earnest money, the developer had given the allotment letter but later refused to hand over the flat on taking the remaining amount or executing agreement of sale. The commission termed it deficiency in service and unfair trade practice and stated that ₹45,000 also be paid towards mental agony and litigation cost.
The order was passed on a complaint by Kandivali resident Vivita Chugani against M/s Siddharth Enterprises and four others, including two partners and two brokers. Chugani came across two brokers who informed her about the Palghar property. On their assurance that title of the land where building was being constructed was clear, she visited the site and was willing to purchase a flat. She paid a total of ₹11.7 lakh.
As per understanding between Chugani and the developer, she paid 50% earnest money and was told that she would get an allotment letter in August 2012. After issuing the allotment letter, the developer issued another one informing about the construction progress, completion of plinth, slab work and payment schedule. However, they were not available after that.
"Intention of unlawful financial gain"
Chugani continued to follow up. When she met the developers and requested them to execute the final sale agreement, the partners refused and said that the allotment letter is not binding and cannot be forced upon the sellers. Chugani then issued a legal notice calling for execution of the sale agreement. She alleged that the partners had duped her with the intention of unlawful financial gain.
At the commission stage, Siddharth and its partners failed to appear so an ex-parte order came to be passed. Citing Maharashtra Ownership of Flats Act, the commission observed that it is the duty of the developer to enter into a written agreement of sale which should be registered. The commission also stated that statements of ‘allotments letter not being binding’ demonstrated unwillingness to carry out statutory obligations, which is unfair trade practice.
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