State Consumer Commission Provides Relief to Tilak Nagar Flat Buyers : Mumbai

The commission has ordered the developer to provide the buyers with the flat they originally booked.

In a significant decision, the state consumer commission has issued a range of relief options to flat buyers in Tilak Nagar. Additionally, the commission has directed developers to comply with certain directives within a specified time frame, failure of which will result in additional interest.

Relief options for buyers

The commission has ordered the developer to provide the buyers with the flat they originally booked. Alternatively, buyers have the option to choose another flat in the vicinity. If neither of these options is fulfilled, the developer must refund the buyers the amount of ₹25 lakh they paid in 2010, along with 12% interest per annum. Failure to follow the refund option within three months will incur a 15% interest penalty.

Compensation for mental agony and litigation costs

Apart from the relief options, the commission has awarded additional compensation of ₹4.50 lakh to the buyers for the mental agony and litigation costs they endured. This compensation will also attract 9% interest if not paid within two months.

Background and parties involved

The order was issued in response to a complaint filed by residents of Tilak Nagar, Suresh Nadkarni, Geeta Nadkarni, and their son Sachin Nadkarni, against M/s Aditya Association and its partners Arun Patil, Rocky Khushalani, Shamlal Chandnani, and Pawan Tharwani.

The Nadkarnis had booked a flat with Aditya Association as they were in need of one. The total cost of the flat, located on the 12th floor of Daya Sagar building in the Shubham Sagar Twin Towers, Tilak Nagar, was ₹35 lakh. However, the construction of the building had been completed only up to the 11th floor, without permission for further floors. According to the agreement, if the buyers did not receive the flat, they were entitled to a 9% interest refund.

Developers’ arguments and Commission’s ruling

During the proceedings, the developers argued that the complainants were not consumers but investors, seeking the rejection of their complaint. They cited changes in rules that led to construction delays.

The commission refuted the developers’ claims, stating that the buyers had made a substantial payment and were entitled to receive their flat. It clarified that the buyers did not abandon their demand for the flat or request a refund, thus cannot be classified as investors. The commission emphasised that changes in rules do not absolve the developers of their responsibility, considering they failed to complete construction and deliver possession even after a 13-year delay.

This order by the state consumer commission aims to provide relief to the affected buyers and emphasises the accountability of developers in fulfilling their obligations towards consumers.

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