State Consumer Commission to Construction Firm: 'Give Flats Or Refund ₹25.5 Lakh With 12% Interest'

State Consumer Commission to Construction Firm: 'Give Flats Or Refund ₹25.5 Lakh With 12% Interest'

Orders state consumer commission on an Andheri resident's complaint that developers failed to deliver flats within promised time frame of 24 months 

Ashutosh M ShuklaUpdated: Sunday, August 06, 2023, 11:06 PM IST
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State Consumer Commission to Construction Firm: 'Give Flats Or Refund ₹25.5 Lakh With 12% Interest' | Photo: Representative Image

Mumbai: In a major relief for a homebuyer, the state consumer commission has ordered the construction firm to either give the possession of two flats or refund the deposit amount of Rs25.59 lakh with 12% yearly interest. It also directed to give Rs3.5 lakh towards mental agony and litigation costs. The order, dated August 3, was passed on a complaint of Andheri resident, Ravindra Galande, against Shri Someshwar Builders and Developers and Gurunath Usatkar.

2016 handover promise

In 2014, the complainant had booked two flats, measuring 735 sq ft, in an upcoming project in Panvel taluka. In the next three years, Galande paid a total of Rs25.59 lakh, including taxes, for both the houses. Subsequently, Someshwar executed a sale agreement, which acknowledged that the payments have been made and the flats will be handed over within 24 months of construction.

As per the aggrieved, not only the construction work was sub-standard but also the developers failed to deliver the flats, prompting him to approach the consumer commission. Notices were issued to Someshwar as well as Usatkar. However, they did not appear before the commission hence an ex-parte order was passed.

During the hearing, the forum observed that the documents submitted by Galande proved that he paid the consideration for two flats and the same was even acknowledged by the construction firm. As per the agreement, if possession was not given in 24 months, the complainant was entitled to 12% interest per annum on the deposit amount, said the commission, adding that he proved that there was deficiency in service. 

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