A construction company was directed to pay a compensation to a housing society for failing to execute the conveyance deed with the latter.
The Pune district consumer redressal forum has ordered a construction company to pay a compensation of Rs25,000 to a housing society for failing to execute the conveyance deed with the latter.
The firm also failed to provide waste disposal system and provide account of maintenance charges collected from the members of the residential unit built in Balewadi.
The order issued on February 18 by Forum president Anjali Deshmukh and member SK Kapase also directed the Elite Erectors Pvt Ltd to execute conveyance deed with Elite Empire Cooperative Housing Society within six weeks. The case was filed by the society against the construction company through its chairman P Ramkrishnan and secretary Chaitanya S Thakar on July 12, last year.
According to the plaint, the society of 325 flat owners was registered on May 18, 2006, and the construction company had promised to execute the conveyance deed within three years after the society was formed. However, the company failed to keep its promise.
The company had entered into agreements with flat owners on November 8, 2004, and had given possessions of the flats to them after they paid full money. It also collected maintenance charges from the owners from 2002 to 2008.
However, its account was not given. The company’s directors were initially the chairman and secretary of the society. However, the executive committee was dissolved for irregularities in audit vide an order of deputy district registrar of cooperatives dated April 9, 2009, and an administrator was appointed.
After the executive committee was dissolved, the company gave a cheque of Rs16,989 to the administrator towards the dues.
However, there was a dispute about it.
The society’s plaint alleged that the society went into losses due to the irregularities and the company has shown Rs8 lakh loan of suppliers on the society. The society demanded for the vouchers of expenses and remaining balance of the maintaining charges.
Besides, the society was also not provided waste disposal system. Claiming physical and mental agony, the society had asked for compensation of Rs1 lakh and additional amount of Rs25,000 towards the suit cost.
The company director produced himself when the matter came up for hearing before the forum but did not record his written say. Therefore, the forum issued a no say order against the company.
The forum order observed that the Maharashtra Ownership Flat Act, 1963, makes it mandatory to execute the conveyance deed within four months after the society is registered.
However, the company failed to do so which is its deficient service. The order also observed that failure to provide accounts and vouchers of the society maintenance must have inconvenienced the society and therefore the society deserves compensation.
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