The landowners transferred development rights back in 2010 and finalized subsequent terms in 2015 for a new residence, parking slots, and monetary dues. Despite delivering the flat in May 2018, the builder withheld Rs 88 lakh tied to increased floor space index and raised an improper demand of Rs 30,26,592 for construction costs. The consumer commission determined these actions amounted to an unfair trade practice alongside a failure to pay temporary rent and penalties. To rectify the breach, the developer must now register the accommodation agreement and cover relevant duties within 60 days.
Key points
The consumer commission awarded the affected landowners a total payout exceeding Rs 1.22…: The consumer commission awarded the affected landowners a total payout exceeding Rs 1.22 crore.
The developer violated the Maharashtra Ownership Flats Act, 1963, by failing to register…: The developer violated the Maharashtra Ownership Flats Act, 1963, by failing to register the required accommodation agreement.
The judgment was decided ex parte after the builder failed to make an appearance during t…: The judgment was decided ex parte after the builder failed to make an appearance during the commission proceedings.
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You give your land for redevelopment to a builder but the latter does not honour his commitment fully, withholds the promised payments, and also fails to honour other contractual commitments when the flat is handed over to you. What options do you have then?
A recent ruling by the Maharashtra Consumer Disputes Redressal Commission has addressed this issue, deciding in favour of the landowners.
What the case is about
The dispute originated in 2010, when two landowners, along with their late mother, transferred their development rights to a builder for redevelopment. They held a one-third undivided share in a property in Mumbai, and executed an Agreement to Assign for the redevelopment.
Subsequently, they also entered into a Supplementary Agreement dated February 18, 2015, and an Agreement to Offer Permanent Alternate Accommodation (PAA), executed on the same date.
In their complaint before the Consumer Commission, the landowners said that the builder had agreed to allot them a 1,395 sq. ft. flat in the newly constructed building, along with two car parking spaces.
The agreement also required the developer to pay monetary…
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