65 Lakhs plus 18% interest to be paid by Unitech as compensation

It seems as though the legal system is finally in place to crack the whip on dishonest builders and property construction firms for fooling the consumers. This past week seemed like a flood of such instances where the Courts have come down heavily on such dishonest builders. In the recent happening, National Consumer Disputes Redressal Commission (NCDRC) ordered realty major Unitech to pay back Rs 65.36 lakh to a home buyer with 18% interest for its failure to deliver the flat in one of its projects in Greater Noida even nine years after the consumer had bought it. A bench of Justice J M Malik and member Dr S M Kantikar said, “ Keeping in view the bizarre conduct of the opposite party (builder), we further impose costs of Rs 50,000, which be paid to the complainant within 90 days from the date of receipt of copy of this order otherwise it will carry interest at the rate of 9% per annum.“ The case was filed by one Navneet Chabra of Ludhiana, who had bought a flat in Habitat project of Unitech in Greater Noida in January 2006 and an agreement was signed between both the parties in November that year. “ It was clearly agreed between the two that the flat would be handed over to my client within 36 months from the date of signing of the agreement. But it was nowhere near completion when Chabra moved the apex consumer forum,“ said Chabra's counsel Saurabh Jain. Certain specifics of the case were noted by the Courts. The commission mentioned that when the order was being dictated the counsel for the opposite party (builder) prayed that her submission should be recorded that her client was ready to offer an alternative flat to the complainant in compliance with the agreement. But the counsel for the complainant did not agree to it. “ Hopefully the new changes would go a long way to pull the consumers' chestnuts out of the fire (rescue them from difficulties). The fabian policy adopted by the opposite party has benefited it a lot. It has utilized the amount in so many projects which he has started. “ Unitech spokesperson did not respond to emails and text messages.

OUR TAKE

Dishonesty on the part of big players in the real estate is a real shock. The whip has been cracked by NCDRC many a times in the recent past. This drive will not stop anywhere in the near future either. These decisions are here to stay. But the conditions for equilibrium in the property business area will not be attained if such cases of dishonesty and malpractice exist in the market.