Don;t let the builder make false promises and take you for a ride   Arts    Entertainment    Health     Lifestyle    Reference    Sports    Society     Travel
Home > Articles > Don;t let the builder make false promises and take you for a ride
Don;t let the builder make false promises and take you for a ride
The consumer courts and the supreme court can assure you of the promises and services that your builder does not fulfill.
Conveyance deed

In one instance, Ramesh R Trivedi v/s Ambar Tower Co-operative Housing Society Limited, New Delhi, the National Consumer Dispute Redressal Commission, New Delhi decided on 30th May 1997 (as reported in 1998(1) Bom C.R. (Con) 77) held that: The builder/developer did not execute the deed of transfer of premises of the society under the Maharashtra Ownership Flats Act even after collecting amount for executing the same. The complainant had stated in the complaint that the opposite party had refused to convey the right title and interest of property in disregard to the relevant laws and as per the terms of the flat purchasers agreements entered into between the parties. The parties are bound by the terms of the agreement. The conveyance deed was to be executed subject to the provisions of the relevant laws and as per terms of the agreements. The order passed by the State Commission so far as it related to the direction regarding execution of conveyance deed on the basis of exceeded FSI is not correct and cannot be sustained in law. The State Commission directed the developer to execute the deed of transfer of property to the society with a penalty of Rs. 1000 for each day of default. The order modified that the deed be executed as per provisions of law and terms of the agreement. A penalty of Rs.1000 a day was set aside.

In the case of (Lucknow Development Authority V/s. M K Gupta reported in (1994) 1 SCC 243-AIR 1994 SC 787, 1998(1) BOM.C.R. (Cons). 77, the SC commended for conferment of powers of superintendence of the State and National Commission Complaint as to the deficiency in service in relation to immovable property. The SC held that the consumer courts have the jurisdiction and housing construction or building activity are covered in the definition of "service" in Section 2(0) (even before the inclusion of "housing construction" by 1993 amendment).

Consumer court
The Maharashtra State Consumer Disputes Redressal Commission (State Consumer Court) decided on 3rd September 2003 in the case of Krishna D Singh V/s Pavan T Punjabi, reported in 204(1) Bom..C.R.551, -the jurisdiction of forum has to be determined on the basis of the value of subject matter of dispute and not by result of the decree or award. For the purpose of valuation of dispute, relief claimed has to be considered in the context of averments in the complaint/suit. The rule is that a suit shall be instituted in the court of the lowest grade competent to try a suit and a court/forum can pass a decree for an amount in excess of its pecuniary jurisdiction.

No common areas
The appellant, a group housing society, entered into an agreement with the respondent, a builder and developer, to construct and sell 64 flats measuring 34,361 sq.ft in "Tulip Park". The floor plan annexed to the agreement did not however, show the common areas. A sanctioned plan granted by the Bombay Municipal Corporation and its orders, formed part of the agreement. The appellants grievance was that the saleable area when measured came to 29,788 sq.ft when it had paid for 34,361 sq.ft and therefore claimed a refund of Rs.28,80,776. Considering that the building was constructed as per sanctioned plans and each flat is of the area as given in the agreement and the complainant had agreed not to raise any dispute regarding the saleable area, particularly when the permitted area of the construction was to the extent of 34,361 sq.ft There was no deficiency in service provided by the respondent (Tulip Park Co-operative Housing Society Limited V/s. Sai Overseas Import and Export (1999) 8 SCC 588).
Post your comments Post your Comments
Posted on : 28/11/2005
Become a Writer
You can contribute article on technology management trade or related topics and get noticed on the web for Free.
Learn More : India Business to Business Directory
Business Directory of Indian Suppliers Manufacturers and Products from India.
Search for: -
  • Indian Products
  • Indian Suppliers
  • Trade Fairs

  • Don;t let the builder make false promises and take you for a ride