Builder fails to handover flats, comply with state panel order; gets 3 yrs in jail

January 2015: State consumer commission directs Suraj Developers to handover a flat booked by Mira Road resident Yasmin Vanoo at Sewri or any other similar flat in the same locality, or pay her sum of ₹71.85 lakh, along with compensation of ₹1 lakh.

Mumbai: Cracking down on builders who do not comply with orders, the state consumer commission recently sentenced a developer to three years’ imprisonment for failing to hand over apartments or pay Rs 38 lakh to two buyers.

The builder, Vijay Kalia, expressed his inability to comply with the court order. “The accused should undergo imprisonment for a maximum period of three years or till the time he complies with the final order,” the Maharashtra State Consumer Commission said. The commission said that Kalia had the remedy to challenge the order before the National Consumer Disputes Redressal Commission even from jail. Kalia is the sole proprietor of Puneet Enterprises. Two complaints were filed against Kalia. While the first

the state commission refused a builder’s prayer for bail after he was ordered to be taken into judicial custody for failing to comply with its order to hand over a flat to a buyer. The builder, Nitin Mehta, was later granted a bail of ten days by the Bombay high court, after he told the court that he would “settle” the matter with the flat buyer Manherlal Shah

In June 2016,

complaint was moved by Thane residents Prakash and Neelam Sardar in 2010, the second was submitted by Airoli-based Deorao Hippargekar in 2011. Both had alleged that the builder had not handed over flats booked by them in the builder’s Thane project. On November 24, 2015, the state commission passed orders in favour of the flat buyers. In the Sardars’ case, the commission ordered the builder to hand over the first floor flat in the project measuring 900 sq ft the Thane consumer disputes redressal forum held a builder guilty of non-compliance of an order passed nine years ago and sentenced him to two years’ simple imprisonment. The forum also imposed a fine of 10,000 on the builder, R D Mishra, for failing to hand over a Navi Mumbai flat along with 50,000 in damages to a buyer as directed by the forum in April 2008

In January 2017,

within 60 days of the order. In Hippargekar’s case, the flat to be handed over was the same size but on the second floor. In both complaints,the commission said that in the absence of the booked flats, the builder could procure and hand over flats of identical size in the same locality to the complainants within a period of 60 days.

When the builder did not comply with the order, an application for its execution was moved through advocate Uday Wavikar.

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