Mumbai: Consumer panel directs builder to refund buyers' deposits for promised flats with 12% interest

Mumbai: Consumer panel directs builder to refund buyers' deposits for promised flats with 12% interest

Ranging between Rs11 lakh to Rs26 lakh, the deposits have to be given back with 12% interest, ordered the commission.

Ashutosh M ShuklaUpdated: Monday, May 22, 2023, 11:37 AM IST
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Passing five separate orders against the same developer and his associates, the state consumer commission has directed to refund the amounts taken from buyers as they didn't get the promised flats. Ranging between Rs11 lakh to Rs 26 lakh, the deposits have to be given back with 12% interest, ordered the commission. It also directed to compensate the complainants for mental agony and litigation costs. The commission settled the maximum compensation limit to Rs2.50 lakh.

Project didn't move an inch in three years

The orders dated April 20 were passed on complaints of four Mumbai residents and one Thane citizen against M/s Monarch Greenscapes and its partners. According to the aggrieved, the advertisement by the developer said that it had all approvals from competent authorities, with construction likely to finish in 2016 followed by handover in mid 2017. The complainants booked flats, ranging from Rs28.29 lakh to Rs52.40 lakh, in a Thane-based project. The flats were to come up under the rental housing scheme of the Mumbai Metropolitan Region Development Authority.

All the buyers had paid 40% of the total consideration and were issued an allotment letter in 2014, with possession promised in 2016. However, three years passed and the project didn't move an inch, prompting the buyers to approach Monarch which gave them assurance. When the complainants went to the developer's office again, it was found shut, making them realise that their funds were misappropriated. They all issued a common legal demand notice for refund in 2016.

Refund money within 60 days: Commission

The commission stated that the complainants had made payment out of their hard-earned money, while opponents had not shown willingness to refund the amount. Pointing out that in two cases, flats in question were allotted to someone else, the commission directed that opponents refund the complainants' money within 60 days of the order. 

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