Home Buyers Finally Got The Justice But, After 22 Years Of Booking Flats In Mumbai Project.

MUMBAI: Their state consumer commission has come to save the day of 25 flat buyers who put their savings of life time in booking their dream homes in a housing project in Mumbai about 22 years back, only to have to cough up Rs 41.5 lakh each, almost 10 times the initial price, to get possession. The flats were booked between 1998 and 1994 by 112 persons, mostly employees of Excel Industries, at prices that ranged between Rs 4 lakh and Rs 6 lakh. Most had paid 50 plus% from the flat's cost.

In The Year 2011, the developer demanded Rs 41 lakh more from each buyer and said the market rate in the vicinity was around Rs 80 lakh for similar-sized flats.The commission said the escalated demand was only "pressure tactics'' and "unfair trade practice'' by the builder to get the buyers to simply accept his offer of Rs 14 lakh and cancel the bookings in 'Rajendra Kunj', a residential project in Mumbai’s Borivli (east). The commission directed the builder, Truly Creative Developer Pvt Ltd, to hand over possession of flats in 2 months at the original price along with all agreed amenities. An order is to also pay damages of Rs 50,000 each to 25 buyers for the mental agony that the unprecedented delay in possession is responsible for them.

The developers, Rajendra Barde and Dattatray Barde, directors from the firm, also initially offered them an 8% return around the money that they had already paid. Flats they wanted, as entitled in law, although the lawyer for the buyers, Dilip Kulkarni, argued that it was not money. The builder wants the buyers out to ensure that he can sell the flats at the current market rate which may attract a price of approximately Rs 1 crore, they argued.

The commission panel presided over by judicial member Usha Dhanraj and Thakare Khamatkar observed that in some instances, "flats were booked in 1994, agreements executed in 2005. And no possession handed over till date''. The buyers had approached the commission in 2013.The job was stopped for a year in 1998 and 3 years since 2005 after disputes landed in the city civil court. But there was no stay on construction between 2005 and 1999 and also, since 2008. Yet the building is not even close to get completed.

The builder's lawyer, Ajay Karwath, resorted to every legal arsenal to have the buyers' complaint dismissed. He questioned their status as consumers, calling them investors, and even challenged the jurisdiction from the commission which can hear claims above Rs 20 lakh.

The commission said the buyers had claimed damages of Rs 60 lakh with interest. Hence, the jurisdiction had not been flawed, plus they were all employees who purchased small flats for their residence with a valid agreement and continued to pay amounts which the builder demanded through the years, longing for completion and possession, hence they were consumers. "They would not have waited for 16 years to get possession when they were investors.''

The builder argued that the buyers had not come within 2 years, as legally required, of making payment in 2000 but stayed silent for 13 years. The commission said that since no possession has been given it was a continuous cause of action plus they buyers, were not late.

Besides the builder had in the year 2011 acknowledged the "patience'' of the clients who had "booked and paid up front''. The builder attempted to suggest that court orders had delayed the project but the commission pointed out that there was clearly no stay since 2008. "The builder had taken no steps between 1994 to 1999 to begin work...the builder never took speedy steps to complete the project,'' said the commission's order of September 16.

The builder also claimed the housing project was being constructed on the plot which was under a slum rehabilitation scheme, but the commission said, "yet he sold flats to these buyers''. "He executed valid agreement underneath the law, took huge amounts from them, got these to execute the stamp duty and registration and therefore the buyers are entitled to peaceful possession of the flats''.One of the buyers, some died during the wait, many dipped within their pensions, one widow sold her jewellery to pay for the illusive dream house, that they like her, many Mumbaikars still chase.

Aashish Palliwal is a very specialized content writer www.indianhousingprojects.com professional too. He has/her written many articles about Indian housing