Maharashtra State Consumer Commission holds Someshwar Builders liable for deficiency in service
Directs it to handover possession of flats or refund Rs.22.6 lakhs to the complainant with interest
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Maharashtra State Consumer Commission holds Someshwar Builders liable for deficiency in service Directs it to handover possession of flats or refund Rs.22.6 lakhs to the complainant with interest The Maharashtra State Consumer Commission has held Someshwar Builders and Developers, the construction company, liable for deficiency in service. The bench comprising Justice SP...
Maharashtra State Consumer Commission holds Someshwar Builders liable for deficiency in service
Directs it to handover possession of flats or refund Rs.22.6 lakhs to the complainant with interest
The Maharashtra State Consumer Commission has held Someshwar Builders and Developers, the construction company, liable for deficiency in service.
The bench comprising Justice SP Tavade (president) and AZ Khwaja (judicial member) directed the company and its owner, Gurunath Ramdas Usatkar, to hand over the possession of the two flats to the complainant within three months. Alternatively, it should refund the amount of Rs. 25,59,668 to him with an interest rate of 12 percent per annum. It also ordered payment of Rs. 3 lakhs for mental agony and harassment, along with costs of litigation of Rs. 50,000 to the owner.
The complainant, after reading an advertisement in a Marathi newspaper, booked two residential flats in Shree Krupa Sagar Sankul for a total cost of Rs. 22,05,000, excluding various charges such as service tax, stamp duty, and registration.
Between 2014-2018, he paid a total of Rs. 22,59,688 to the construction company using different payment methods including cheque, cash, and NEFT transfer.
In December 2017, Shree Krupa executed an Agreement to Sell. However, there was an issue with the built-up area mentioned in the agreement. The booked flat was supposed to be 735 sq.ft., but the agreement stated it as 635 sq. ft.
The company assured the complainant that possession of the two flats would be given within 24 months from the project's commencement. In case of failure, it would be liable to pay interest at a rate of 12 percent per annum on the amount received. Since no possession was given to him until 2019, a complaint was filed against Shree Krupa.
The Commission observed that the construction company was liable for deficiency in service, as despite receiving the entire amount, it failed to complete the project. Moreover, when it began construction, the quality was very low, as substandard material was used.
Thus, the State Commission directed Shree Krupa and its owner to hand over possession of the two flats to the complainant within three months or as an alternate refund the amount to him with interest.