Navi Mumbai News: Consumer Commission Orders Builder To Hand Over Flat And Pay ₹2.2 Lakh Compensation In 20-Year-Old Booking Dispute

Mumbai: The State consumer disputes redressal commission (SCDRC), has dismissed the appeal of a Navi Mumbai builder and upheld the order against her for "deficiency in service" and "unfair trade practice" in a nearly two-decade-old flat booking dispute.

The Commission, led by Justice S.P. Tavade, directed the female builder,Kamal B. Deshmukh, proprietress of M/s. Vighnahar Construction, to either hand over the originally booked flat or a reserved alternative unit to the complainant, Minakshi Ankush Kekan, along with a total of Rs 2,20,000 in compensation, including compensation towards mental agony and other costs.

Background of the Dispute

The case dates back to 2005 when Kekan booked Flat No. 302, admeasuring 770 sq.ft., in the Siddhivinayak Building in CBD Belapur for a total consideration of Rs 8,75,000. She paid a substantial amount of Rs 6,00,000 upfront.

The project faced significant delays, prompting the builder's husband, Balasaheb B. Deshmukh, to offer his own apartment, Flat No. 202, as temporary accommodation to Kekan under a rent agreement in 2006.

The dispute emerged in 2015 when Kekan discovered that the builder had sold the original Flat No. 302 to a third party. Furthermore, the builder demanded that Kekan pay an enhanced rate of Rs 1700 per sq.ft. for the property, citing higher construction costs, a condition which Mrs. Kekan refused as it was outside the original 2005 agreement.

Commission Ruling and Compensation

The State Commission concurred with the earlier District Consumer Commission's finding, asserting that demanding an enhanced rate after causing project delays and years after the original booking constitutes a clear "unfair trade practice."

In its final order, the Commission ruled that Kamal B. Deshmukh must accept the balance payment of Rs 2,75,000 and hand over the original Flat No. 302 by executing a registered deed. If Flat No. 302 cannot be recovered, the builder must immediately hand over Flat No. 202, where the complainant currently resides, by executing a registered document without charging any further excess amount.

The builder was directed to pay Rs 2,00,000 as compensation for the deficiency in service and mental trauma, along with Rs 20,000 towards the cost of the proceedings.

Also Watch:

The builder has been given 45 days to comply with the order. In case of default, the awarded cost and compensation will carry a steep interest rate of 18% per annum.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/