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Two Builders Sentenced To Two Years In Jail For Failing To Hand Over Mumbai Flat

The Maharashtra State Consumer Commission has sentenced two partners of a Mumbai construction firm to two years of simple imprisonment for failing to comply with an order directing them to complete a flat, obtain the required occupancy certificate and hand over lawful possession to the buyers.

In its August 6 order, the commission also imposed a fine of Rs 10,000 each on partners Sameer Ziaudddin Khan and Sarosh Khan, along with a Rs 10,000 penalty on their firm, Sterling Constructions.

Buyers Approach Consumer Commission

Sunil Sadanand Vaiti and his wife, Kirti Sunil Vaiti, had filed a complaint against Sterling Constructions and its partners over Flat A-701 in the Sterling Apartments project in Kurla.

The consumer commission had earlier found the developers deficient in service and directed them to complete the seventh-floor flat, secure the occupancy and building completion certificates and hand over possession.

The buyers were directed to pay the remaining Rs 14.50 lakh, along with Rs 25,000 towards expenses and another Rs 25,000 towards share money and entrance fees. The builders were also ordered to pay 21% annual interest on Rs 16.50 lakh from August 30, 2013, until possession, besides Rs 1 lakh as compensation for physical and mental harassment.

The buyers later filed an execution application alleging non-compliance.

Builders Cite Revised Plans

The developers argued that changes in plot demarcation and regulations required modifications to the building plan. Sameer Khan said the company had purchased the required TDR and FSI in 2015 and submitted revised plans. Another plan was filed in 2022 due to setback requirements, while a fire NOC had also been obtained.

“The accused is unable to comply the impugned order entirely. It is further contended that there is no willful disobedience of the order on the part of the accused,” the commission order states.

However, the bench comprising President S.P. Tavade and Member Vijay C. Premchandani noted that Khan admitted during cross-examination that possession had been given, but the occupancy certificate remained pending.

“The accused handed over the possession of the alleged flat, however, failed to give lawful possession. The said fact narrates that the accused has willfully and deliberately disobeyed the impugned order passed in the original consumer complaint,” the commission said.

The commission rejected the developers’ defence and held that they had failed to establish that compliance was beyond their control.

“The accused miserably failed to comply the order and the said fact is admitted even in the cross examination of the accused,” the commission observed.

The commission consequently allowed the execution application and held the builders liable under Section 27 of the Consumer Protection Act, 1986. Sterling Constructions was fined Rs 10,000, while both partners were sentenced to two years’ simple imprisonment and fined Rs 10,000 each.

Source: The Times of India

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