A builder has been ordered to pay an interest of around Rs 58 lakh to a Dombivali couple who paid Rs 31 lakh for a Mulund flat in 2013 but never received possession.
Awarding a rare interest rate of 21%, the state consumer commission also ordered the builder to refund Rs 31 lakh. The builder will have to cough up an additional Rs 1.5 lakh towards mental agony and costs of litigation.
“The complainants paid the part consideration of the booked flat in the year 2013, but till date the opponents have neither executed the agreement nor started construction activities on the site. The complainants had also visited the office of the opponents several times to see the progress in the construction of the building. But, there was no progress and hence, the complainants approached this commission. Thus, the complainants must have suffered mental agony…,” the Maharashtra State Consumer Disputes Redressal Commission said.
The complainants, senior citizens Ganesh and Asha Gavali, moved the commission in 2018 against Siddharth Construction Co. Ganesh is a retired Reserve Bank of India officer. The couple told the commission that they had come across an advertisement in the local newspaper regarding construction of a building at Salphadevi Pada, Mulund West. They then booked a flat measuring 1,008 square feet in the project for Rs 92 lakh. In April 2013, they paid a booking amount of Rs 15.5 lakh. The following month they paid another Rs 15.5 lakh. The couple said they were to receive possession in 18 months.
The complaints submitted that subsequently they visited the builder’s office and requested them to execute the agreement. They were assured it would be done soon. However, when the builder did not, the couple visited the site. They said they were shocked that no construction activity was on at the site. Over the next few year, despite several assurances, the project was not completed. Aggrieved, they moved the commission.
The builder told the commission that he was ready to settle the dispute and repay the amount.
It was also submitted that Rs 3.5 lakh had already been refunded to the couple. The couple said that they had been only refunded Rs 2.5 lakh.
The commission said the builder had accepted part payment but failed to construct the building and deprived the complainants of taking possession of the booked flat.
“Therefore, it is proved by the complainants that the opponents (builder) indulged in unfair trade practice and they have given deficiency in service,” the commission said.
