Mumbai: Give flat, 15 lakh to buyer, forum tells builder

The State Consumers' Dispute Redressal Commission (SCDRC) in its order has directed a developer to provide flat to a home buyer along with Rs 15 lakh with interest for delayed possession.

The order was passed by presiding judicial member PB Joshi, judicial member DR Shirasao on a complaint made by Arvind Ramachandra Budhkar against the developer Srushti Raj Enterprises (India) Ltd and its chairman and managing director Chinnaiah E Gowda.

In 2007, the builder signed an agreement with a society and the tenants for the redevelopment of the building in Chembur. As per the agreement, Budhkar, a tenant of the building, would get a flat admeasuring 550 sq ft by December 2013 free of cost.

However, the project did not take off. Neither did get a flat, nor the corpus or the rent amount as promised in the agreement.

The developer in its defense said that the agreement was made with the complainant's mother and not her legal heirs. The commission, however, stated that the society had entered the complainant and his brother's name in the share certificate as legal heir.

The commission had also set aside the developer allegation about the complainant not moving out on time stating that they did move out on time; it was the developer who acquired permission for redevelopment very late.

Calling the compensation sought by the complainant "excessive", the court directed the developer to pay Rs 15 lakk and warned the latter of additional interest if not paid on time.

Break-up

• The amount includes rent arrears of Rs 5.15 lakh, Rs 1.29 lakh towards corpus fund, Rs 2.06 lakh towards brokerage and transportation, Rs 6.5 lakh for delayed possession and Rs 1.25 lakh as compensation