Real Estate: If you are purchasing a flat from a builder, you need to read this news carefully. Two Mumbai builders have been jailed for failing to deliver possession. Let's find out the full story.
Two Mumbai builders landed behind bars for this reason.
Real Estate: Are you planning to buy a flat from a builder in the near future? If so, this news is very important for you. A recent case has emerged from Mumbai, Maharashtra, in which two builders will face jail time for failing to return possession of a flat. Furthermore, they will also have to pay a fine of 10,000 rupees each.
What is the whole matter?
This case involves Sterling Apartments in Kurla, Mumbai. Sunil Sadanand Vaiti and his wife, Kirti Sunil Vaiti, filed a complaint against Sameer Ziauddin and Sarosh Khan with the Consumer Forum. Based on their complaint, the Commission first ordered the builders to complete the work on flat A-701, obtain the necessary Occupancy Certificate (OC) and Building Completion Certificate, and then hand over legal possession of the flat to the buyers.
Furthermore, the Commission ordered the buyers to pay the remaining ₹14.50 lakh and certain other fees, totaling ₹15 lakh. The builders were also ordered to pay 21 percent annual interest on the ₹16.50 lakh from August 30, 2013, until possession, and to compensate the buyers with ₹1 lakh for mental and physical suffering.
Builders did not comply with the order.
Shortly after the Commission's order, buyers again complained that the builders had not complied with the Commission's order. The builders explained that changes in land boundaries and regulations had necessitated changes to the building plan. They also stated that they were applying for new plans and necessary approvals. However, during the hearing, Sameer Khan admitted that possession of the flats had been given to the buyers, but occupancy certificates had not been obtained.
The Commission pronounced its sentence,
stating that possession granted without an OC cannot be considered legal possession. The Commission also acknowledged that the builders deliberately disobeyed the earlier order. It also stated that the builders had been given ample time to comply, but failed to do so. Therefore, both were found guilty under the Consumer Protection Act and sentenced to two years in prison. Both builders will now serve two years behind bars.
