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Maharashtra Consumer Forum Asks Builder to Pay Compensation for Delay in Handing Over Flat

Image for representation.

Image for representation.

Anil Sharma, a retired Navy official, had alleged that he and his wife booked a flat in a scheme being developed by Star India Projects at Karjat near Mumbai for Rs 13,74,600. He paid the firm Rs 13,32,870 betweeen July 2010 to April 2014.

Mumbai: The Maharashtra State Consumer Redressal Forum has directed a builder to pay a flat-buyer Rs 75,000 in compensation for not handing over possession of the flat for ten years, even after accepting 95 per cent of the sale price.

Anil Sharma, a retired Navy official, had alleged that he and his wife booked a flat in a scheme being developed by Star India Projects at Karjat near Mumbai for Rs 13,74,600. He paid the firm Rs 13,32,870 betweeen July 2010 to April 2014. The flat was to be handed over by May 2012, but the construction suddenly stopped and the flat buyers were not intimated about it, Sharma alleged.

Finally, he and his wife moved the consumer forum, seeking refund of the money paid.

Star India Projects' lawyer argued before the forum that it was ready to hand over the possession but the complainant refused to accept it. But the forum didn't find any merit in the real estate firm's contentions as it did not submit any supporting documents.

"Till today complainants did not get possession of their dream house. Builder cannot ask flat purchaser to wait for indefinite period for getting possession of their dream house despite payment of full consideration," the forum observed.

In its order earlier this week, it held Star India Projects guilty of "deficiency in service" and "unfair trade practices", asking it to refund Rs 13,32,870 along with Rs 65,100 paid for stamp duty and Rs 14,910 paid for registration charges.

The forum further directed Star India Projects to pay Rs 50,000 as compensation for "mental and physical harassment" and Rs 25,000 towards litigation cost.

first published:March 07, 2020, 18:39 IST
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