Builder penalized for terminating flat sale agreement
A builder in Mumbai has been penalized for terminating a sale agreement of a flat on the grounds of alleged late payment which brings in relief to the buyer.
Maharashtra State Consumer Disputes Redressal Commission has directed the builder to pay Rs 2.25 lakh as compensation to the buyer in Kandivali.
The Redressal Forum observed the breaking of law by the developer in time and ordered the builder to hand over the flat within two weeks after the buyer makes the full payment.
The buyer had purchased the flat of 558 sqft at Mira Road for Rs 18.2 lakh in September 2009. He had paid an initial amount of Rs 2.72 lakh and Rs 51,000 later.
After some time, the builder sent a letter asking for a payment of Rs 1.15 lakh for the flat in Mumbai. When the buyer went after few days (after receiving the letter in April 2010) to make the payment, the developer informed that due to late payment, his booking has been cancelled.
However, the letter was not accompanied by the architect’s certificate and the demand was shown towards the plinth work.
Later in May 2010, when the buyer went to the site for a visit, he found that the slab work was still incomplete. However, he was still okay with the further payment but the builder did not accept it.
The builder further stated that if the buyer wanted to save the booking, he should have made the previous payment on time or enter into a fresh agreement as per the new property rates.
The redressal forum relied on the agreement between the two parties and gave relief to the buyer. As per the agreement, the builder had to notify the buyer about each payment and a 15 days notice period had to be given.
The commission also concluded that the buyer did not break any agreement rule and had tried to pay full amount in time. Aslo, before terminating the sale agreement, the builder neither issued a 14-day prior notice in writing nor refunded the previous amount.
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