The State Consumer Disputes Redressal Commission (SCDRC) has asked a developer to pay a housing society Rs 17 lakhs with interest. The order came after the commission found out that the developer had failed in its obligation to pay for stamp duty, conveyance and had caused inconvenience to the housing society.
The order came after Shree Mangalmurti Co-Operative Housing Society Ltd., Navi Mumbai filed a complaint on July 8, 2019 against Gayatri Developers and its partners.
Shree Mangalmurti in its complaint stated that the developers had failed in its obligation of paying the stamp duty, and ensured that conveyance deed is given to the society. The society hence sought compensation from the developers.
Under Maharashtra Ownership of Flats Act (MOFA), 1963, the developers are obligated to convert the land whereupon the building is situated to the housing society and incur incidental expenses for performing these obligations. As per the order, the developer after acquiring the landon lease from CIDCO for housing purposes, it made buildings and sold the flats.
However, the housing society had to shell out Rs 12.79 lakhs as stamp duty for lease deed, Rs 4.95 lakh for lease deed and conveyance together. The society demanded that the above amount be reimbursed with interest, and further Rs 5 lakh be given as compensation and Rs 1.5 lakh as litigation cost.
The developer challenged the complaint and stated that consumer commission cannot entertain the complaint. It argued that the remedy lies before the Civil Court, which can decide the dispute between the parties regarding reimbursement claim by the society.
The commission while stating that society is a "consumer" under the Consumer Protection Act, it observed that, "In the present case, we find that opponents failed to perform its obligation under MOFA and, therefore, complainants had to incur actual and incidental expenses. That being so, we declare that there was deficiency in service, unfair trade practice on the part of opponents for not performing statutory obligation as understood under MOFA Consumer Protection Act, 1986."
The commission further ordered that developers pay the society Rs 12.79 lakhs for stamp duty of lease deed with 9% interest per annum. It give Rs 3 lakhs for lease transfer and deemed conveyance with 9% interest and Rs 1.5 lakh for inconvenience caused, and harassment to members of the society besides Rs 50,000 for litigation cost. Commission stated that all the money had to be paid in 90 days failing which 12% interest per annum will be effective.
MOFA ACT
- Under Maharashtra Ownership of Flats Act (MOFA), 1963, the developers are obligated to convert the land whereupon the building is situated to the housing society and incur incidental expenses for performing these obligations.
- The society demanded that amount be reimbursed with interest
