NCDRC makes Mumbai realtor group pay for sneaky actions

The National Consumer Disputes Redressal Commission has directed the Mumbai-based Lodha Group to refund Rs 1.02 crore for & quot arbitrarily& quot cancelling a flat booked by two senior citizens in Thane along with 18% interest on the principal amount from end-2010. The court condemned the actions of the realtor group as they withheld the money for five years from the couple. The group has been asked to further pay a compensation of 1 lakh rupees within the next 90 days. & quot We hereby condemn the attempt to pull a fast one on the complainants,& quot says the order passed on May 5. The builder had cancelled allotment in June 2011 after the complainants, Dr Naren P Sheth and Dr Sudha N Sheth, opposed what the commission has called the & quot illegally demanded additional amount& quot of Rs 3.96 lakh towards car parking and took the matter to the district consumer forum. The builder, in seek of quick money, sold the property off to another buyer in July 2011, just one month before the case was filed in the NCDRC. While examining the case, the court termed this as “ bordering contempt of court” and & quot clearly establishing the builder's mala fide intention& quot . The commission pronounced, & quot The complainants were not bound to pay the double amount for car parking... (They) should have been warned and a notice should have been sent before cancelling the flat. This shows the arbitrary, high-handed, arrogant, despotic and capricious character of OP2& quot . OP2 stands for 'opposite party 2', Shree Sainath Enterprises (SSE), which is part of the Lodha Group, listed in the order as OP1. The report had further observations to make. It said the builder went on & quot accepting lion's share towards the construction and the delivery and possession of the flat, but did not execute the agreement to sell& quot . It also said the builder could not demand additional amount for parking as per law. & quot It depicts deficiency and unfair trade practices. It's also surprising to note that after receiving almost the entire amount, the OPs chose to cancel the same without giving possession.& quot

OUR TAKE

Such decisions and judgments are slowly gaining notice in the society. Quite often, the builders escape unnoticed and thus this decision will go a long way in making it clear to the realtors that no shady business or sneaky transactions in search of money will be tolerated by the judiciary. The court has set an example with this decision. We hope that this is not just a one-off case and soon this becomes the norm.