A real estate firm that delayed giving possession of an apartment to its buyer has been directed by the State Consumer Dispute Redressal Commission of Tamil Nadu to pay Rs3 lakh as compensation. In December 2012, Vijaya Padmanaban, an employee of Chaitanya Builders, made an advance payment towards booking an apartment in a building project of her employer. Two years later, she resigned her job. The company sent her a note saying that the flat was allotted to her “at less than (the actual) cost on an understanding of a long-term productive participation in the growth of the company.”
The company also returned her cheques saying that her “attitude to the company’s assignments resulted in a loss of Rs2 crore in a project.” Vijaya filed a complaint with the Commission seeking compensation of Rs20 lakh for deficiency in service, harassment, mental agony, and Rs15,000 for loss of funds.
The Commission agreed with her and directed Chaitanya Builders to “hand over possession of the flat to Vijaya and pay an amount of Rs3 lakh for deficiency in service, harassment, loss and sufferings undergone by her, besides Rs5,000 as costs.” Vijaya has also agreed to pay the revised price.
The Thane Consumer Redressal Forum ordered a city builder to pay Rs1.45 lakh as compensation to a property-owner for cheating and delaying the possession of his flat near the Dadoji Kondeo Stadium. Forum president, UV Javlikar, and member ND Kadam, directed Moinuddin Badgujar, proprietor of M/S Royal Developers and Construction, to compensate the landlord Yusuf Husain Miya Shaikh for defaulting on almost all conditions listed in the agreement for sale.
Mr Badgujar was awarded the contract for redevelopment of Mr Shaikh’s tenements in 2004. The contract specified that the builder would construct six flats for Mr Shaikh’s family; the rest of the flats and commercial space were to be retained and sold by the builder at the prevailing market price. Two years after the contract was awarded to Royal Developers and Construction Company, Mr Shaikh noticed deviation in the plans. He dragged Mr Badgujar to the Forum which directed the builder to pay Mr Shaikh Rs1.45 lakh and to finish the incomplete works in three months of the order or pay a fine of Rs500 per day.
Banks and developers are offering a 10:80:10-scheme wherein the home-buyer has to pay only 10% upfront for booking a flat, 80% via bank loan during the period of construction, and the final 10% after getting possession of the flat. The buyer and the developer, together, pay 20% of the margin required to get a bank loan. Tata Housing Development Company has announced a 10:80:10-scheme for its residential project Amantra on the Thane-Kalyan Road (Maharashtra) in July 2013. It has tied up with HDFC Ltd, Axis Bank and Tata Capital for rolling out the scheme.