Mumbai: Couple to get Rs 16 lakh refund from builder

The state consumer disputes redressal commission (SCDRC) in an order has directed the Royal Palms (India) to refund over Rs 16 lakhs to a couple that they had paid to purchase two flats. The flats were not given to the couple and the possession was instead given to the bank from whom the couple taken loan and mortgaged them.

The order was given by D.R.Shirasao, presiding judicial member, A K Zade, member on two complaints filed by Shakila Abdul Salam Siddiqui and Abdul Salam Siddiqui

The Siddiquis had booked two flats with Royal Palms (India) Pvt. Ltd. Both the flats costed over Rs 28 lakhs and the couple paid over Rs 8 lakhs for each of them. For the remaining money, the couple took loan from Indiabulls Housing Finance Ltd. Though they had directed the bank to give the money in phases, the bank had given it at one go.

After some time, the bank put up notices on the flats stating that they were seized. The couple by then had paid interest of over Rs 9 lakh for both flats before the bank said that they defaulted on loan and auctioned the flat after receiving orders from the Court of Chief Metropolitan Magistrate. The couple challenged the order but lost out in appeal stage.

The commission order stated that while it cannot get into the auction, the owners had paid part amount and there was no proof that the flats possession was given to them first. It then asked the Royal Palms to refund over Rs 18 lakhs with 12 percent interest and give Rs 2 lakh as compensation besides Rs 20,000 as litigation cost.