Over Rs1.2 cr compensation, profit margin for not getting bungalow

Over Rs1.2 cr compensation, profit margin for not getting bungalow

The State Consumer Disputes Redressal Commission (SCDRC) has directed a partnership firm to pay a Byculla resident Rs67.50 lakh with 12% interest, which itself comes to close to Rs69 lakh, for not providing a bungalow for which he paid Rs42 lakh.

Ashutosh M ShuklaUpdated: Thursday, December 15, 2022, 03:39 AM IST
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Mumbai: The State Consumer Disputes Redressal Commission (SCDRC) has directed a partnership firm to pay a Byculla resident Rs67.50 lakh with 12% interest, which itself comes to close to Rs69 lakh, for not providing a bungalow for which he paid Rs42 lakh. The Rs 67.50 lakh was derived after taking the profit margin into consideration after payment of the amount for the bungalow. Additionally, Rs1.25 lakh needs to be paid towards mental agony suffered and litigation costs.

The order was passed on a complaint by Mr Minaz Khan against M/s Key Stone Infra Developers and builders Yunus Khot, Furquan Khot, Mushtaque Khot and Arshad Khot.

Mr Khan had approached the opponents for purchase of a property. It was agreed between the complainant and opponents to sell / allot a bungalow measuring 1,865sq ft on a plot of 296.89sq m in Khalapur taluka of Raigad district for a total consideration of Rs42 lakh. Mr Khan paid the amount to Mr Yunus by cheque and cash in 2013 and the latter issued an allotment letter cum receipt to him and his wife Ms Samira on behalf of Key Stone for the entire amount. However, when they failed to fulfil the requirements, a Memorandum of Understanding (MoU) dated Apr 17, 2014, by the remaining builders was signed in which they gave three offers to Mr Khan for not being able to give the bungalow until then. These included a bungalow of the same size in a revised layout on another plot, or a 2BHK flat in Kharghar instead of a bungalow, or a refund with profit amounting to Rs67.50 lakh in two instalments to be paid by the end of June 2015.

When the cheques were put for clearance, both got dishonoured due to insufficient funds and a case was filed in a Metropolitan Magistrate Court. The opponents again promised to return the money but nothing happened. A police complaint was filed and Mr Khan approached the consumer commission with a plea that one of the three options be given. Some of the opponents refused to accept the notice. Those who received notices filed false, frivolous and bogus replies as per the order. When they failed to appear, an order to proceed ex-parte was passed against the opponents.

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