Man invests over Rs 40 lakh in Sion flat; cheated by real estate firms

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Consumer Disputes Redressal Commission of Maharashtra has declared Runwal Homes Pvt Ltd and Propel Developers Pvt. Ltd. guilty of deficiency in their services. The builders have been 'severely directed' by the court to hand over a flat to a complainant Rajan Vayalambron Palleri besides instructing the 'builder to pay compensation for mental trauma, inconvenience and the expenses incurred by the complainant within 60 days of the order', which was passed on February 17.

Palleri (67) a transporter had agreed to purchase a flat admeasuring 655 sq.ft. carpet area in ‘Chestnut' for a total consideration price of Rs 76.45 lakh. As per the complainant, prior to the execution and registration of the above-said agreement, he paid over Rs 42 lakh to Runwal as 54.95 per cent of the total cost towards part consideration and a remaining balance of Rs 34.43 lakh. But the developers failed to hand over possession of the flat to Palleri. Instead, they allegedly demanded an additional amount of Rs 10.50 lakh as additional development charges/other charges from him which was never the agreement to on April 13, 2015.

"I paid this additional amount too," said Palleri. "I am residing on lease and license basis paying a monthly compensation to his licensor and had expected possession of the said flat by December 2014, but the developers failed to do," he added.

However, developers in their written complaint submitted before the consumer court stated that 'since the objective behind the purchase of the subject flat is commercial in nature, the complainant is not a consumer'. The order copy of the consumer court reads, 'The developers are jointly and severally directed to handover the possession of the flat to complainant besides paying Rs 1 Lakh towards compensation for mental trauma and inconvenience and the expenses and a sum of Rs. 50,000 towards legal and other incidental expenses incurred by the complainant.'

The legal department of developers informed mid-day, "Rajan Palleri's flat in the project Chestnut has been ready with an O.C. and we offered him possession of the flat four years ago subject to him making payment of the balance amount as per the terms of the agreement for sale executed by him with us. Rajan Palleri chose to contest payment of the balance amount and has approached the State Consumer Forum. Our legal position in the matter is strong on merits. We will file an appeal against this order."

Meanwhile, there were several victims who approached the court and police stations against Runwal Homes Pvt. Ltd for not handing over the possession of flats despite paying hefty amount as per the agreement.

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