Consumer forum fines Creatoz Builders

Consumer forum fines Creatoz Builders
15/04/2019 , by , in News/Views

The Maharashtra state consumer disputes redressal commission has directed Mumbai-based Creatoz Builders Private Limited to pay Rs 1.25 lakh each as compensation and cost to nine homebuyers for delaying execution of agreements and possession of flats in a mega housing project in Wagholi.

“In a recent order, a two-member bench of the commission’s presiding judicial member P B Joshi and member A K Zade also directed the realty firm, which has its corporate office in Bandra East, to execute agreements in relation to the flats allotted to the nine homebuyers and hand over possession of the same within two months,” a lawyer, who appeared for the homebuyers, told media on Friday.

A Lawyer who represented the realty firm, said, “Though the commission pronounced an operative part of its order over a month ago, we are yet to receive the order’s certified full text. We will take a call on compliance or exercising further legal remedies after we receive and examine the complete order and discuss it with our clients.”

The realty firm had argued, among other things, that the flats were booked at a pre-launch stage and the buyers had a prior knowledge about it. The agreements could not be executed as no plan had been sanctioned at the pre-launch stage, besides the homebuyers have not paid the remainder of the total consideration of their flats, it argued.

The firm claimed that the plan was sanctioned on September 13, 2011, but the complainant’s lawyer pointed out that the occupancy certificate issued on November 24, 2017, mentioned that a non-agriculture permission and revised construction plan was sanctioned on September 9, 2014. The bench said the builder’s contention that permission of construction was sanctioned on September 13, 2011, cannot be accepted considering the argument that the agreements could not be executed at pre-launch stage for want of sanctioned plan.

The bench cited Section 4 of the Maharashtra Ownership Flats Act (MOFA) and said, “It is clear that if amount is accepted by the builder from the flat purchaser then it is obligatory on the part of the builder/promoter to execute agreement and the contention (of the realty firm) that the buyers have not made payment of 20% of the sale price is not correct.” On buyers having prior knowledge about pre-launch stage, the bench held that if the promoter/builder has accepted any amount out of total consideration of the flat, he has to execute the agreement.

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