In Maharashtra a District Consumer Forum has held that not executing a sale agreement and handing over possession of a booked flat, inspite of receiving a substantial part of the payment, amounts to deficiency in service on part of the developer. The forum has directed the defaulting developer to pay a compensation of Rs.50,000. The additional Thane district consumer forum has also ordered the developer to hand over possession of the flat within 45 days, to ex-serviceman Balaji Shinare, in the building constructed by the builder at Kamothe in Navi Mumbai.
The developer had promised the complainant the he would execute a sale deed for the flat, but failed to do so and had tried to register a sale deed for the said property in another person’s name.
The complainant in his complaint had alleged that he had booked the flat in October 2010 by paying booking amount of Rs.3.1lakh, the total cost being Rs.15.49 lakh. He had agreed to pay the balance consideration amount in 12 instalments. Upto April 2011, Shin are had paid Rs.9.2 lakhs and the developer had promised to execute the Sale Deed of the flat in that month itself. The complainant a retired Air Force personnel was ready to pay additional amount of Rs.90,000/- towards stamp duty and registration charge. He had also paid another installment as demanded by the developer.
The developer allegedly did not execute the sale deed and ignored the repeated requests of the complainant. Shinare went to the sub-registrar’s office at Panvel to find out the status of the flat. He learnt that the developer had registered the sale deed for the flat in some other person’s name.
Aggrieved by this he approached the consumer forum in March 2012. The developer failed to respond to the notice issued by the forum. The forum decided the case on the basis of documentary evidence submitted by the complainant and held the developer guilty of deficiency in service for failing to complete the transaction, hand over the ready flat, despite receiving substantial consideration.
The court also directed the builder to execute a sale deed in favour of the complainant, who will pay the balance amount while taking possession of the flat. The forum further directed the developer to pay compensation of Rs.50,000 to Shinare for the mental agony suffered by him.
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