Can Builders Be Arrested For Failing To Hand Over Flats? NCDRC Says Yes [Read Order]

The National Consumer Disputes Redressal Commission (NCDRC) has upheld an order of the state commission, which had ordered the arrest of officials of a real estate for failing to hand over flats or make refunds on time.

In the instant case, in spite of the proclamation published against the director and general manager of the company under Section 82 CrPC, they did not appear before the state commission, and hence, were declared as proclaimed offenders.  The state commission then ordered their arrest, so as to take proceedings against them under Section 27 of the Consumer Protection Act, 1986. This order by the state commission was assailed before the national commission.

The national commission observed that under the Consumer Protection Act, compliance of the order passed by the consumer fora is made by following procedure under Section 25 or Section 27 of the said Act. It is not for the judgment debtor to choose,which manner of execution is to be followed. It was the duty of the judgment debtor, therefore, to put in appearance before the state commission and state their view point before them, the commission held.

The national commission also observed that a miscellaneous application before the state commission by the company seeking settlement was dismissed by the state commission. The commission said if they wanted to make an alternative offer, they could have challenged the order passed by the state commission, but they chose not to do so.

Read the order here.