Builder told to cough up Rs5 Lakh for delay in handing over flat

The state consumer forum recently pulled up a city-based construction firm for inordinate delay in handing over a flat to a customer.

Observing that there was deficiency in service, the forum directed the developer to give possession of the apartment within two months and pay the customer Rs5 lakh as compensation.

In November 2005, Dadar resident Shivanand Shanbhag had booked a flat measuring 1,250 sq ft at a Navi Mumbai project by M/s Star Developers, owned by Ramesh Kohli at a cost of Rs13,75,000. After receiving 90 percent of the amount, the firm had promised to hand over the flat on or before June 2006.

In his complaint, Shanbhag stated that the builder failed to deliver peaceful possession of the flat even after receiving so much money. The complainant said he kept communicating with the firm till 2011 without any success. In the meantime, he had also sent a legal notice to Star, but the firm did not bother to respond on it.

Shanbhag approached the consumer forum in November 2011. The forum, after going through his complaint, had asked the developer to file its reply. However, Star failed to appear before the forum and file its reply.