Order of Consumer Forums – What happens if not complied with

 

A large number of cases are coming up in various Consumer Fora against the builders. They tend to take matters very lightly and tend to disobey them…..
I am reproducing an order of the State Commission, Maharashtra. The concerned builder was sent to jail for three years, unless he complies with the order before that……..

 

BEFORE THE HON’BLE STATE CONSUMER DISPUTES REDRESSAL COMMISSION,              MAHARASHTRA, MUMBAI

Execution Application No. EA/13/10 (Arisen out of order dated 3rd February, 2012 in CC/05/20)

  1. Manherlal C. Shah 47, Carnac Siding Road, Iron Market, Masjid Bunder (East), Mumbai 400 009. New Add:- 101A, Walkeshwar Road, 11, New Indrabhuwan, Near White House, Mumbai – 400006 …..                                                           Executant(s)

                                                                        Versus

1.     M/s. Siddhivinayak Builders (Proprietorship) Tulsi Tower, Second Floor, 51st Road, T.P.S. III, Borivali (West), Mumbai – 400 092. New Add – Benzer Tower, 2nd Floor, Near Sanskruti Enclave, 90ft Road, Next To IBPS, Borivali East, Mumbai 400101

2.      Mr Nitin N. Mehta (Partner of M/s Siddhivinayak Builders ) 1, Homestead, 16, Dattatryaya Road, Santacruz (W), Mumbai 54 New Add Benzer Tower, 2nd floor, Near Sanskruthi Enclave, 90ft Road, Next To IBPS Borivali E Mumbai ……………………………………………………………………………………….Opponent/Accused(s)

 

Mr. Justice A.P. Bhangale, President ….Heard Submission of both the sides on execution application u/sec 27 of Consumer Protection Act, 1986.

 

1. By final order complaint no. CC/05/20 was allowed and opponents were directed to deliver possession of Flat No.702, C- Wing, situate on 7th Floor, having carpet area of 732 sq.ft. in the building known as “Emerald Court to the complainant. While giving possession, occupation certificate was also to be ensured by the Opponents with supply of water and electricity and complainant was required to pay an amount of Rs.17,000/- in view of Clause 45 of the agreement dated 18/08/1997 as stated in Clause 4 of the judgment and award in the Complaint No.CC/05/20. At the time of receiving possession, the executant was and is ready and willing to pay the sum of Rs.17,000/- payable according to Clause 4 of the operative order. Compensation in the sum of Rs.1,00,000/- is payable by the opponent as per Clause 5 of operative part of the final order and litigation costs in the sum of Rs.10,000/- as per Clause 6. of the operative part of the final order.

 

2. In execution application in defence the opponents have stated that they (the opponent) cannot give possession of the flat (aforesaid flat) because the opponent sold the flat to third party. This cannot be valid excuse for non-compliance of the final order passed by this Commission. Ld.Advocate for the Opponents has sought to adduce some copies of documents to pray for time for compliance of final order, tried to show deed of rectification (phtostate copy), we are not impressed by such evasive submissions in respect of final order passed by us. Once order is made final, passed by the State Commission, it is duty of the 3/4 opponent to obey it and no such excuse can be pleaded which cannot be acceptable by any reasonable prudent person; the accused has to undergo jail custody. There is long standing tendency on the part of the builders/developers in city of Mumbai and Suburban areas to enter into agreement in respect of innocent flat purchaser and then to create interest in third parties, inter alia, with a view to avoid statutory obligations under Maharashtra Ownership of Flats Act, 1963 (‘MOFA’ in short). According to law we cannot accept any such excuse for non- obedience of the final order which was passed by us long back on 3rd February, 2012. When final order despite challenged in superior Forum or Court remains final there can be no excuse for non-compliance thereof by the opponents. Hence, once it is brought to our notice that final order is not yet obeyed deliberately though understood by the opponent. Possession of the flat is not given as directed, we have no other option to remand opponent/accused Mr. Nithin Mehta to imprisonment with a direction that until and unless final order is complied with the opponent/accused shall remain remanded to the jail custody and shall be sent to undergo imprisonment alike civil detenue in the jail.

 

  1. We make it clear that in the event opponent want to comply with the final order, reference be made to us through the Superintendent of Jail concerned and Complainant, if reports compliance of final order, we can immediately consider releasing the opponent/accused from detention. The jail custody shall continue for a period of three years maximum period unless and until final order is complied with by the opponents in view of Section 27 of the Consumer Protection Act, 1986. 4/4 4. At this stage, the Ld.Advocate for the opponent/accused has filed an application for bail u/sec 389 of Cr.P.C. on the ground that Commission had taken up the matter for final hearing in the execution proceedings and directed detention of the opponent/accused to the jail custody until the compliance of the final order. Since, our order is self explanatory and since the opponent/accused disobeyed the final order despite the fact that the final order is not complied since long despite evidence recorded in execution proceedings as to whey final order remained disobeyed, no justification was found for deliberate disobedience of final order. Hence, we are not inclined to grant bail as prayed for because we will not suspend our aforesaid order as it would be sending wrong signal to opponent to continue to disobey the order and deprive of the consumers of their legal right. Hence, application is rejected. Certified Copy of the order be expedited. Order accordingly.

                                            [HON’BLE Mr.Justice A.P. Bhangale]                              PRESIDENT
[HON’BLE MR. Narendra Kawde]  MEMBER

   Pronounced Dated 13th June, 2016.

25 flat buyers kept hanging by builder for 22 yrs – get justice in two years

 

The Consumer Forums are taking a much needed tough stand against erring builders who think they are above the law and are resorting to all kinds of unfair and illegal practices…

 

Swati Deshpande| TNN | Updated: Sep 23, 2016, 08.08 AM IST

 

 

MUMBAI: The Maharashtra  State Consumer Commission has come to the rescue of 25 flat buyers who put their service class life savings in booking small homes 22 years ago, only to be asked to cough up Rs 41.5 lakhs each, almost ten times the original price, to get possession. The commission said the escalated demand was nothing but “pressure tactics” and “unfair trade practice” by the builder to get the buyers to accept his offer of Rs 14 lakh and cancel the bookings in “Rajendra Kunj’ a project in Borivli (east).

The commission directed the builder, Truly Creative Developer Pvt Ltd, to hand over possession of flats in two months at the original price and with all agreed amenities. The order is to also pay damages of Rs 50,000 each to 25 buyers for the mental agony that the unprecedented delay has caused them.

The flats were booked between 1994 and 1998 by 112 persons, mostly employees of Excel Industries, at prices that ranged between Rs 4 lakh and Rs 6 lakh. Most had paid over 50% of the flat’s cost. In 2011, the developer demanded Rs 41 lakh more from each buyer and said the market rate in the vicinity was around Rs 80 lakh for similar-sized flats. The developers, Rajendra Barde and Dattatray Barde, directors of the firm, also initially offered them an 8% return on the money they had already paid. The lawyer for the buyers, Dilip Kulkarni, argued that it was not money, but flats they wanted, as entitled in law. The builder wants the buyers out so that he can sell the flats at the current market rate which would attract a price of around Rs 1 crore, they argued.

The commission panel presided over by judicial member Usha Thakare and Dhanraj Khamatkar observed that in some cases, “flats were booked in 1994, agreements executed in 2005. And no possession handed over till date”. The buyers had approached the commission in 2013. The work was stopped for a year in 1998 and three years since 2005 after disputes landed in the city civil court. But there was no stay on construction between 1999 and 2005 and since 2008. Yet the building is far from complete.

The builder’s lawyer, Ajay Karwath, resorted to every legal arsenal to have the buyers’ complaint dismissed. He questioned their status as consumers, calling them investors, and even challenged the jurisdiction of the commission which can hear claims above Rs 20 lakh. The commission said the buyers had claimed damages of Rs 60 lakh with interest. Hence, the jurisdiction was not flawed, and they were all employees who purchased small flats for their residence with a valid agreement and continued to pay amounts which the builder demanded over the years, hoping for completion and possession, hence they were consumers. “They would not have waited for 16 years to get possession if they were investors.”

 

Link to the full news:

http://timesofindia.indiatimes.com/city/mumbai/25-flat-buyers-kept-hanging-by-builder-for-22-yrs-get-justice/articleshow/54471423.cms

One Avigna Park, the first cluster development project in Mumbai……….in serious trouble……………..


One Avigna Park, the first cluster development project in Mumbai……….in serious trouble…………….
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Mumbai: FIR against builder for FSI fraud that cost govt Rs 2,000 cr

Cops registered FIR against directors of the firm that constructed the 61-storey super luxury project — One Avighna Park at Currey Road — for allegedly forging…
MID-DAY.COM
Read the entire story at the following link: 

http://www.mid-day.com/articles/mumbai-fir-against-builder-for-fsi-fraud-that-cost-govt-rs-2000-cr/17592153