Handover Possession Of Flats Or Refund 22.6 Lakhs With Interest: Maharashtra State Commission Holds Someshwar Builders Liable For Deficiency In Service

The State Commission directed the Construction Company and its owner to hand over possession of the two flats within a period of three months or in alternative refund the amount of Rs.25,59,668/- to the Complainant with an interest rate of 12% per annum. Further, it also ordered payment of a sum of Rs 3 Lakhs for mental agony and harassment along with costs of litigation of Rs. 50,000/-.

Brief Facts:

The Complainant booked two residential flats in Shree Krupa Sagar Sankul for a total cost of Rs. 22,05,000/-, excluding various charges like service tax, stamp duty, registration, etc. He learned about this project through a Marathi Newspaper. Over time, the Complainant paid a total of Rs. 22,59,688/- to the Construction Company using different payment methods such as Cheque, Cash, or NEFT, from 2014 to 2018.

In December 2017, the Construction Company executed an Agreement to Sell. However, there was an issue with the mentioned built-up area in the agreement, as the booked flat was supposed to be 735 sq.ft., but the agreement stated it as 635 sq. ft.

The Construction Company had assured the Complainant that possession of the flats would be given within 24 months from the project's commencement. In case of failure to meet the agreed possession timeline, the Construction Company would be liable to pay interest at a rate of 12% per annum on the amount received. The Complainant filed the complaint since no possession was handed over to him until 2019.

Observations of the Commission:

The State Commission observed that the Construction Company is liable for deficiency in service as in spite of receiving the entire amount of consideration, the Construction Company failed to complete the project as assured and hand over possession of the flats. Further, the Construction Company started the construction but the quality of the construction is very low as it used substandard materials.

The Commission allowed the Complaint and directed the Construction Company and its owner Mr. Gurunath Ramdas Usatkar to handover possession of the two flats within a period of three months or in alternative refund the amount of Rs. 25,59,668/- to the Complainant with an interest rate of 12% per annum. Further, the Commission also ordered payment of a sum of Rs. 3 Lakhs for mental agony and harassment along with costs of litigation of Rs. 50,000/-.

Case Title: Mr. Ravindra Bajirao Galande vs. Shri Someshwar Construction Companys and Developers

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