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Builders gain advantage over tenants of old properties

Those who are redeveloping properties will no longer be required to pay rent.

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The Pune District Consumer Grievances Redressal Forum has ruled that the builders redeveloping old properties are not required to pay rent to tenants of old properties even for delayed possession of the flat in case alternate temporary accommodation is provided.

The observation came after a suit filed by a resident of Nana Peth against a builder redeveloping the property where the plaintiff’s family lived for 80 years.

The plaint was filed by Ameena Tamboli, a resident of Axa Heights, opposite Chand-Tara Masjid in Nana Peth and her son Zakir on December 8, 2011. The plaint named Irka Associates and its partners naming Hasmohideen Inamdar, Sonraj Oswal, Afar Qureshi and Jaffar Pathan as the respondents.

The plaint alleged, “The Tamboli family was living in a 173 sq ft room in a house in Nana Peth for the past 80 years and they paid a rent of Rs25 per month. On September 19, 2007, the builder took the property for redevelopment. As per the contract, the builder was to provide a 250 sq ft flat to Tambolis at the rate of Rs2,800 per sq ft. The Tambolis were to pay Rs2.67 lakh for the flat and its possession was to be given to them in 18 months.

In the case of delayed possession, the builder was to pay compensation at the rate of Rs 1,000 per month. The Tambolis paid Rs80,000 to the builder by May 2009 but could not pay the remaining amount as the builder did not provide them the documents needed for loan.”

Later, the Tambolis filed a criminal complaint against the builder but to no avail. Later, a separate civil case was filed in the small cause court.

In their suit before the forum, the Tambolis asked for a payment of Rs80,000 as compensation for delayed possession of the flat along with 15% interest, compensation of Rs75,000 for mental agony, payment of monthly rent of Rs2,500 and a suit cost of Rs10,000.

The builder and partners’ lawyer argued that the Tambolis had been given temporary accommodation in an 80 sq ft area and that they had filed the case just to malign the construction company’s image and grab property.

Though the forum president V P Utpat and member SM Kumbhar rejected the plea for monthly rent, they directed the construction company and its partners to pay Rs1,87,500 to Tambolis and give them possession of flat in two weeks. The forum ordered the construction company to pay a compensation of Rs1,000 per month since April 2009 till the possession of flat is given to them, compensation of Rs5,000 for mental agony and a suit cost of Rs3,000.

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