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Builder to pay woman 2 lakh for delay in handing over flat

The state consumer commission has penalised a builder for failing to hand over the possession of a ready flat booked by a Dombivli resident four years ago, despite receiving a substantial part of the payment.

The Maharashtra State Consumer Disputes Redressal Commission has directed Aditi Land & Infrastructure Developers to pay Pushpa Mehta a compensation of Rs2 lakh for not giving her the Ghatkopar flat, even though she had paid Rs32 lakh of the Rs35 lakh due to them.

The commission has given the developer two months to hand over the 675-sq ft flat, failing which the developer will have to shell out an additional penalty of Rs1,000 a day.

Pushpa and her late husband Jayantilal had booked the flat In July 2009. The developer executed a sale deed after they paid a booking amount of Rs12 lakh. The couple then got a home loan from the Zoroastrian Co-operative Bank, which advanced them Rs13 lakh, credited directly to the developer’s account.

They also got insurance for the flat and, by August 2011, had paid Rs1.01 lakh towards its premium.

Over the years, the couple continued to pay bank loan installments of Rs26,106 a month.

The final Rs3 lakh was to be paid to the developers when they were given possession.

In August 2011, the couple approached the state commission after the developer failed to hand over possession of the ready flat by January 2011, as stipulated in the sale deed.

The developer contested the complaint saying they had never refused to hand over the flat and said they would do so after the construction work was done and all the necessary certificates from the civic authorities had been obtained.

The developer further contended that the couple had not paid the entire amount, and sought dismissal of the complaint.

The consumer commission, however, dismissed the developer’s contentions.

“This complaint is the best example of how builders exploit prospective purchasers,” the commission said.

The state commission held the developer guilty of deficiency in service and directed them to pay Rs2 lakh to Mehta towards compensation for mental agony for the delay and Rs25,000 towards the cost of the litigation.

Article referred: http://www.hindustantimes.com/India-news/Mumbai/Builder-to-pay-woman-2-lakh-for-delay-in-handing-over-flat/Article1-1104447.aspx

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