2L COMPENSATION
Developer to pay for ‘unfair trade practice’
Rebecca Samervel TNN
Mumbai: The Maharashtra State Consumer Disputes Redressal Forum has recently ordered a builder to pay Rs 2 lakh as compensation to a Kurla resident for demanding Rs 9.68 lakh “interest payment” just before handing over the possession of a flat. Runwal Developers Pvt Ltd will also have to pay back Dinesh Hegde the Rs 9.68 lakh.
“It exhibits the builder’s unfair trade practice for having made such an unlawful demand. It also shows deficiency in service for raising the demand and withholding the handing over of the flat’s possession unless the said payment was made,” the commission said.
In 2005, Hegde bought two flats from Runwal Developers, the possessions of which were to be handed over to him on October 31, 2006. The construction was completed in April 2008 and Hegde made the last payment in December 2008. But when he claimed the possession, he was denied. After repeated requests, the builder demanded Rs 9.68 lakh, as interest for the delayed payment and only after the amount was paid in May 2010 was the possession given to him.
The builder contended that according to the agreement terms, Hegde had opted for ‘Advance Disbursement Facility (ADF)’ and hence, got the flat at a discounted rate. The builder said Hegde had agreed to pay the balance Rs 30 lakh at a go and a delay of seven days in payment, would attract an interest rate of 21% pa. In April 2011, the district forum dismissed Hegde’s complaint.
The state commission observed that it can be seen that the builder did offer him a concession and let him make payments as per the construction stages. It said that the demands were duly honoured by Hegde and raising a demand of Rs 9.68 lakh after keeping silent for a long time was unjustified. “At no point any interest was charged for delayed payment. If any interest was applicable, it ought to have been demanded at that time itself,” it observed.
“It exhibits the builder’s unfair trade practice for having made such an unlawful demand. It also shows deficiency in service for raising the demand and withholding the handing over of the flat’s possession unless the said payment was made,” the commission said.
In 2005, Hegde bought two flats from Runwal Developers, the possessions of which were to be handed over to him on October 31, 2006. The construction was completed in April 2008 and Hegde made the last payment in December 2008. But when he claimed the possession, he was denied. After repeated requests, the builder demanded Rs 9.68 lakh, as interest for the delayed payment and only after the amount was paid in May 2010 was the possession given to him.
The builder contended that according to the agreement terms, Hegde had opted for ‘Advance Disbursement Facility (ADF)’ and hence, got the flat at a discounted rate. The builder said Hegde had agreed to pay the balance Rs 30 lakh at a go and a delay of seven days in payment, would attract an interest rate of 21% pa. In April 2011, the district forum dismissed Hegde’s complaint.
The state commission observed that it can be seen that the builder did offer him a concession and let him make payments as per the construction stages. It said that the demands were duly honoured by Hegde and raising a demand of Rs 9.68 lakh after keeping silent for a long time was unjustified. “At no point any interest was charged for delayed payment. If any interest was applicable, it ought to have been demanded at that time itself,” it observed.
Source:::: The Times of India, 19-09-2012, p.7. http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW
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