Mumbai: City developer gets directives from consumer forum

Mumbai: City developer gets directives from consumer forum

As per the directive, complainants will get accrued rent, additional rent, sanction plan and commencement certificate.

Ashutosh M ShuklaUpdated: Thursday, February 09, 2023, 02:51 AM IST
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Mumbai: City developer gets directives from consumer forum | File

Mumbai: In a series of directives, a district consumer commission has ordered M/s Orbit Developers and others to provide proper flat details through corrected agreement to complainants, whose flat was allotted to another person.

Called it “trapping and misguiding”, the commission ordered rent amount within 60 days, failing which it will carry 9% interest. As per the directive, complainants will get accrued rent, additional rent, sanction plan and commencement certificate.

How the rent amount will be paid

The rent amount will be given in different ways – Rs3.73 lakh for rent not given from January 2021 to June 2021, additional rent of Rs8,000 per month for the same period. From June 2021, Rs18,000 rent per month and Rs8,000 additional monthly charges, regularly paid till possession of flat. Besides, the complainants will also get Rs20,000 towards mental agony and litigation cost.

The order dated Jan 31 (uploaded Feb 6) was passed by Preethi Chamikutty and Shraddha Jalanapurkar, members of District Consumer Disputes Redressal Commission (Suburban) on a complaint by Manish Devkar and Archana Devkar against M/s Orbit Developers and Rajan Dhruv, partner in Orbit.

The Devkars were living as tenants in a building that was sold to Orbit for redevelopment in Dec 2007. Orbit planned to call its new project ‘Waterfront’ in which many tenants were to be given space. Dhruv had an agreement with Devkars in Sept 2016, wherein it was decided that they will get 180 sqft space post redevelopment and Rs18,000 rent per month with an yearly increment clause of 10% till they get the flat. The redevelopment was to happen in 30 months with an extension of six months. 

Additional liquidated damages to Devkars

As per agreement they were to get flat no. 306 that was to be given to them. It was also decided that if there is delay in construction, an additional amount of Rs 8,000 as 'additional liquidated damages' will be given per month to the Devkars. However, Orbit stopped the rent amount post January 2021. By June the accumulated rent amount stood at Rs 2.06 lakhs and Davekars sought the same from Orbit. While doing so, they got to know through the deputy registrar that the flat that was to be given to them, Orbit had already done an agreement with one Saraswati Kank to give it to her in January 2016. The construction of the building was also not complete.

Durign the hearing, the commission observed that the opposite party by doing an agreement with Ms. Kank and Devkars for the same flat had "trapped and misguided" them and by doing so had indulged in unfair trade practice. It then passed a series of orders to be complied.  

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