Failure to Transfer Property to Society, Builder fined Rs.1 Lakh

Posted On: 2014-09-23 21:46:25

     In Thane a builder has been directed by the district forum, to pay Rs.1 lakh compensation for failing to transfer the property in the name of a co-operative society and get the conveyance deed done in its favour.

    Thane District Consumer Disputes Redressal Forum, in its order passed last week, stated that Anubhav Builders, committed deficiency in services towards the society and injustice to its members, by not following the provisions of the Maharashtra Ownership of Flats Act (MOFA) 1963.

    In Charai area of Thane City, the Jai-Shital Cooperative Housing Society had filed a complaint that inspite of repeated reminders, the builder had failed to transfer the property in the society's name. The builder also did not get the conveyance deed done in its favour. The society was struggling to get it done for the last 15 years but the builder was ignoring their request.

Builder's  defence :

    The builder informed the court that the complaint is time barred and also some more buildings were located on the same plot. The builder argued that it was difficult to do sub-divide of the properties, transfer only the said plot in question and requested for dismissal of the complaint.
The forum dismissed the plea of the builder. It observed that the agreement stated that the transfer be effected, but also it was mandatory according to MOFA that the land should be transferred to the buyers.

    During the proceedings before the forum, it also came to light that the builder had sold part of the land to another developer, a fact which was not disclosed to the complainants. After hearing the arguments of both the parties, forum president Umesh Jhawalikar and member ND Kadam concluded that the builder  has prevented the dilapidated building from being developed by not transferring the property in the name of the society and getting the conveyance deed.

    The forum observed that it is clear from the attitude of the builder that he has done injustice to the complainants and also prevented the development of the dilapidated building. The forum directed the builder to complete the formalities within three months from the date of order failing which he will have to pay a penalty of Rs.1000/- per day till the order is com plied with. In addition, the forum has directed the respondent to pay a compensation of Rs.1Lakh towards the costs and other expenses within three months. In case of failure the builder has been directed to an additional penalty of Rs.2lakhs to the petitioner society.
Source : Real Estate Reporter (March 2014)