The National Consumer Dispute Redressal Commission (NCDRC) has held Vakola-based Sagar Shopping Developers guilty of multiple deficiencies in service and unfair trade practices in relation to the Sagar Avenue–I CHS Ltd. project.
The commission directed developers Malik K. Meredia and Mohsin K. Meredia, partners of Sagar Shopping Developers, to provide long-pending amenities, secure the Occupancy Certificate (OC), refund illegally collected amounts, and compensate the housing society for prolonged harassment.
14 Years of Unfulfilled Promises
Presiding over the case, Justice A. P. Sahi and Member Bharatkumar Pandya observed in their 48-page judgment that the builder had failed to take remedial steps since 2011. “Almost 14 years have passed, and in the absence of any attempt by the builder to remove defects, it indicates that the builder is trying to take shelter of deviations brought to its notice way back in 2011. The builder is defaulting in its obligations to provide the Occupancy Certificate and is liable for consequences,” the commission noted.
The NCDRC also ordered refunds of registration charges collected from flat owners, noting that the society members had borne the financial burden themselves.
Residents’ Complaints
Society members alleged that despite residents occupying flats since 2003–2004, the builder had failed to obtain the mandatory Occupancy Certificate, Construct the promised clubhouse, compound wall, garden, and jogging track, form the cooperative society despite collecting registration fees, provide a proper society office, hand over essential building documents and other common amenities
Residents also reported being forced to pay double water charges from 2004 to 2012 due to the absence of the OC.
Developers’ Defence Rejected
The builders claimed the complaint was time-barred and that multiple individual complaints prevented a society-level filing. They also cited delays due to Vakola Nala bridge construction and alleged illegal alterations by residents.
The NCDRC rejected these contentions, holding that the deficiencies were continuing causes of action, and that the developers had failed to take remedial steps for over a decade. The commission emphasized that brochure commitments and agreements created binding obligations, and amenities like a clubhouse could not be replaced with an inferior facility.
Binding Directions Issued
The NCDRC directed the developers to, construct a proper clubhouse within six months, obtain the Occupancy Certificate (OC) and deliver it to the society within six months, provide a proper society office within six months, execute the Conveyance Deed and hand over all building records, audit reports, land documents, and agreements within three months of obtaining the OC, refund excess water charges collected between January 2004 and November 2012 Rs 24,43,173 with 6% interest, refund society registration charges collected from all flat owners with 9% interest, pay Rs 10 lakh as compensation for mental agony and harassment within three months, pay Rs 1 lakh toward litigation costs.
