Builder fined 20 Lakh for a delay in giving possession
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The Maharashtra State Consumer Commission recently directed a developer to shell out Rs 20 lakh at the rate of Rs 2,000 a day for a delay in giving possession of a shop premises to a purchaser. The purchaser Dharshi Dedhia was a tenant who a possessed a shop & godown in Rajhans building in Thane as a tenant. The original landlord sold the premises to Padmavati Enterprises who decided to redevelop the property and agreed to give a shop of 366 sq ft to Dedhia at a subsidized rate. The agreement was made in June 2005 to hand over possession in October 2005, but the possession was given in June 2007 without an occupation certificate.
The purchaser and builder had an agreement which says that the developer shall be liable to pay a compensation of Rs 2,000 a day for any delay in handing over the shop not caused by any natural calamity or act of God. The developer’s contention was that the old building was “in ruinous’’ condition and was on marshy land, which required piling work for about six months to make it strong. The developer also said that Dedhia had done some illegal loft construction, which the municipal corporation had objected to and hence did not grant the occupation certificate. Dedhia denied the illegal loft construction of any additional loft and the developer had no proof to show. On the contrary, Right to Information (RTI) details showed that lapses by the developer had led to non-issuance of the occupation certificate.
According to lawyer Bindu Jain, it is a rare case in which damages per day were claimed, and given. The lawyer represented the aggrieved party, Dharshi Dedhia. In January 2009, the Thane district consumer forum ordered the builder, Padmavati Enterprises, to pay complainant Dharshi Dedhia Rs 20,000 for mental agony. No payment was awarded for the delay. Not satisfied with the order, Dedhia appealed before the state commission. The commission went through the agreement and observed that it did indeed say that the developer shall be liable to pay a compensation of Rs 2,000 a day for any delay in handing over the shop not caused by any natural calamity or act of God. Maharashtra State Consumer Commission says‘Bldr’s problems can’t justify delay’.
Builder fined for a delay in giving possession, Consumer Court, delay in giving possession, Maharashtra State Consumer Commission, Mumbai, Mumbai Properties, Real estate in India, Realty News, Rs 2000 a day for a delay
Hi, Thanks for sharing these information with us. these information really help to all real estate builder. Now every real estate builder will deliver the possession with in the time frame.. thanks once again..
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