Failure to givepossession - Builder ordered to refund flat money with interest
District Consumer Forum in Mumbai has observed that
a builder has to pay interest as well when
refunding the money received from a buyer whose flat could not be
constructed. The builder was directed a
to pay Rs.2.5 lakhs to a mother –daughter who had booked a flat in lower parel
but who never got possession of it.
The forum said “the opponents (construction company)
utilized the amount of the complainants for more than three years ,therefore
they are liable to pay interest, going by the provisions of the Maharashtra
Ownership Of flats Act,”
The complainants’ Shaila and Puja Karambhelkar of
Borivli had booked the 560sq-flat to be built by Rupji Constructions for Rs.23.80 lakhs in November 2005. The builder
had collected Rs.6.1 lakhs from the buyers in three years, but there was no construction.
In January 2009, the Karmbhelkars decided to
withdraw the booking and sought refund with interest from the builder. The
company returned the money it had collected between May 2009 and February 2009.
Though the company had promised to pay the interest, it failed to do so despite
several reminders from the buyers.
The Karambhelkars lodged a complaint in the CentralDistrict Consumer Disputes Redressal Forum in 2011. The company argued that
they are not liable to pay interest as the Karambhelkars has cancelled the
booking.
The forum held that the company was guilty of unfair
trade practice.
Projects on One
Acre Land, 20% reservation for EWS
The Maharashtra Government has notified that in
projects on one acre or above land 20% has to be reserved for Economically
Weaker Section (EWS) of society. The Maharashtra chapter of CREDAI has welcomed
the government resolution and is of the opinion that more clarity is required
in this matter.
The state government has come up with an affordable
housing policy. Mr. Sanjay Banait, under secretary, urban development
department had issued the notification
on November 8. As per this notification every builder having construction on a
land area of one acre or above will have to reserve 20% of the flats of the new construction for
economically weaker section and low income groups. This modification is
applicable to cities like Mumbai, Pune, Thane, Navi Mumbai, Nasik and Nagpur
i.e., to the cities with population of over 10 lakhs.
This 20% reservation would be inclusive of both the
flats and plotting schemes and builders floor space index (FSI) would not be
included. The area of this single built flat should compulsorily range between
300-500 sq.ft. On project completion 20%
flats should be handed over to the Maharashtra Housing and Area Development
Authority (MHADA) at the prevailing market rate of the construction cost. These
flats would be allotted on the basis of special lottery method by the MHADA. It
has been made mandatory for the MHADA to take possession of these flats within
six months. In case of failure to take possession by the MHADA, then the
builders can put the flats on sale but at the rate of MHADA (construction
cost).
Mr.Anant Rajegaon, president of Maharashtra chapter
of Credai has welcomed the decision of the government for increasing the land
limit to one acre, making it applicable to cities with population of 10 lakhs
and above. He has further said that exemption of cities with less than 10 lakhs
population is a good move as there is little demand for small flats is low and
if made applicable in future as proposed, would result in piling up of
inventories.
Credai Vice President, Maharashtra has said, has
said the move of the government is a good one as it will provide housing
facility to the economically weaker sections at a low cost and cut down slums
in the city. The difficulty is in its application for plotting schemes. He has
further said that allowing 6 months time to MHADA to buy these 20% flats on completion of the project would block the investments and would increase in expense
at the builders end. Tthis in turn affect the rates of the flats. He has
suggested that the allotment at the construction stage itself will prevent such
issues. He has also said that redevelopment projects must be excluded from the
purview of this notification and Credai would take up the matter with the chief
minister.
For More
No comments:
Post a Comment