A consumer commission has directed a Navi Mumbai builder, who delayed possession, to refund a sum of Rs 48 lakh along with interest at the rate of 12 per cent on the sum, paid as consideration for a flat, which also includes the stamp duty and registration charges.
The Thane Additional District Consumer Dispute Redressal Commission also directed Ajit Singh of Prathamesh Construction to pay a compensation of Rs 2 lakh for deficiency in service and unfair trade practice. Complainant Prem D’Souza, a Navi Mumbai resident, booked a flat in Prathamesh Empire at Ulwe for a consideration of Rs 49 lakh and paid Rs 1 lakh as token amount in January 2013. Later, in April 2016, the promoter informed the home buyer that the problem with the landlord had not been resolved and informed that the complainant had an option to shift to the promoter’s other projects.
The complainant opted to shift to Prathamesh Symphony and an agreement was registered in April 2016, wherein it was promised that the building would be ready on or before 2018. The complainant had in all paid a total amount Rs 48,18,501 including a sum of Rs 2,85,000 for stamp duty and registration charges. Though the extended RERA possession date was June 2022, the project showed little progress and only around 30% of the building was completed. Therefore, the complainant filed a complaint with the Commission in September 2022. The promoter was absent for proceedings in the Commission.
The Commission observed that the promoter had kept all work pending for long and till date the possession of the flat has not been handed over and has not even obtained occupation certificate. The complainant cited rulings of the Supreme Court, which stated that a person cannot be made to wait indefinitely for the possession of the flats allotted to them. The Supreme Court has also said that three-years is a reasonable time frame for completion of the contract. Advocate Anil D Souza, who represented the home buyer, said “While Maha RERA allows maximum interest of SBI MCLR+2% which works out to roughly 8-8.5%, the Consumer Commission has ordered for payment of 12% as interest. Besides, the interest is also on stamp duty and registration amount paid and refund will include stamp duty and registration charges.”
