Mumbai, Jan 09: The Suburban Mumbai District Consumer Dispute Redressal Commission (DCDRC) has penalised an Andheri-based construction firm owned by developer Akram Ali Mohammad Hussain Qureshi for failing to obtain an Occupation Certificate (OC) for a Goregaon housing project, Akme Residency Co-operative Housing Society Ltd., despite handing over possession of the building to occupants nearly two decades ago.
Deficiency in service held
Holding the developer guilty of deficiency in service, the commission directed him to not only obtain the long-pending Occupation Certificate but also reimburse the society for additional expenses incurred due to the absence of the OC.
Extra financial burden on society
The commission observed that the developer’s failure to secure the OC compelled the complainant society to bear extra financial burdens, including higher water charges and unpaid property taxes.
It noted that the society had successfully proved its claims, while the developer had merely denied the allegations without producing any evidence to disprove them.
Advocate D. Deshpande appeared on behalf of the complainant society.
Directions issued by commission
In its order, the commission directed the developer to immediately obtain the Occupation Certificate for the society’s building. The developer was also ordered to execute a registered conveyance deed in favour of the complainant society, as mandated under law.
Additionally, the commission directed the developer to pay Rs 1,28,549 towards property taxes and Rs 1,61,700 towards excess water charges paid by the society to the Brihanmumbai Municipal Corporation (BMC).
The developer was further directed to hand over all relevant original documents pertaining to the land and building to the society and to provide proper accounts relating to maintenance charges collected earlier. An additional Rs 10,000 was awarded to the complainant society towards litigation costs.
Background of the dispute
According to the complaint, the land on which the building stands originally belonged to one Indirabai Vishnu Mhatre, who owned Mhatre Chawl No. 5, consisting of 15 tenements.
In August 2002, she entered into a development agreement granting development rights over the land to the developer, subject to the tenancy rights of the existing occupants.
The developer subsequently entered into permanent alternate accommodation agreements with the tenants, constructed the building, and handed over possession of flats to both old tenants and new purchasers around January 2006—without obtaining the mandatory Occupation Certificate. The commission noted that purchasers were allegedly coerced into signing possession letters despite the absence of the OC.
Failure to meet statutory obligations
The society further alleged that although the developer was contractually bound to obtain the OC within 18 months, he failed to do so. While maintenance charges were collected till 2010, property taxes were not paid, leading the BMC to issue attachment notices in 2011–12. Consequently, society members were forced to clear outstanding dues and pay additional water charges due to the lack of an OC.
The society also contended that the developer failed to execute a conveyance deed in its favour, despite it being a statutory obligation under the Maharashtra Ownership Flats Act, 1963 (MOFA). After repeated notices went unanswered, the society finally decided to approach the consumer commission in 2013.
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Developer denies allegations
The developer, in his defence, denied all allegations, raised objections on limitation, and contended that the society was not a “consumer” under the law. He also claimed that possession was handed over at the insistence of purchasers.
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