Builder directed to pay 5 Lakhs for delay in handing over possession

Posted On: 2014-09-23 21:42:45

      A Mumbai based construction firm has been pulled up by the  state consumer forum for inordinate delay in handing over a flat to a customer. The forum observed that there was deficiency in service, directed the developer to give possession of the apartment within two months and pay the customer Rs.5 lakh as compensation.

    A Dadar resident Shivanand Shanbhag had booked a flat, in November 2005, measuring 1,250 sq.ft at a Navi Mumbai project by M/s Star Developers, owned by Ramesh Kohli for total purchase value of Rs.13,75,000. The firm received 90 per cent of the amount  and had promised to hand over the flat on or before June 2006.

    Mr. Shanbhag stated in his complaint, that the builder failed to deliver peaceful possession of the flat even after receiving so much money. The complainant informed the forum that he kept communicating with the firm till 2011 without any results. In the meantime, he had also sent a legal notice to M/s. Star Developers, but the firm did not to respond on it.

   Mr. Shanbhag approached the consumer forum in November 2011. The forum,  issued  notice to the developer for the complaint filed against them. M/s. Star Developers did not file any reply even to the forum notice and hence, the forum passed the above order in favour of the complainant.
Source : Real Estate Reporter (March 2014)