Flat buyers can proceed against builders for remedy, SC had said

Swati Deshpande TNN 

Mumbai: As residents of the 35 floors held illegal by the Supreme Court in seven buildings of Worli’s Campa Cola compound face an uncertain future, a question being raised is who should be held liable to compensate those families that bought flats on these floors in good faith. 
    In its February 27 order that the illegal floors be demolished, the apex court said the “flat buyers shall be free to avail appropriate remedy against the developers/ builders”. 
    “The flat owners could be entitled to compensation after demolition, but the compensation can come only from the builder and/or promoter, it cannot come from the BMC which had sanctioned the plans,’’ said a lawyer not willing to be named. 
    In the law of contracts, “good faith” is a general presumption that the parties to a contract will deal with each other honestly and fairly so as not to destroy the right of the other party or parties to receive the benefits of the contract. 
    For bona fide buyers, shouldn’t the builder or their heirs be held liable to compensate the people who now stand to lose their homes? “Usually the residents or flat buyers are helpless in the face of violations committed by the developers… Under the Maharashtra Ownership of Flats Act, the builders in the city usually enter into sale agreements based on initial permission required for any construction (even before the commencement certificate) from the civic authorities and though the law mandates that further amendments may be made with approval from the buyers, the provision is routinely flouted,” said advocate Y P Singh. 
    Another issue that arises is whether the authorities who had the responsibility to sanction the building plan and to monitor the construction and its progress should be accountable too. 
    “Does the civic body or the officers attached to departments that sanctioned the development as part of their statutory duty or permitted amendments to the original building plans and were meant to monitor their development at various stages escape liability and blame completely? Is there no accountability of those officers who were to act against the irregularities at the appropriate time?” said senior counsel Amit Desai.

Source:::: The Times of India, 30-04-2013, p.02, http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW