Court order to give possession of Flats

The Maharashtra State Consumer Commission has ruled against the builders, directing the builder, Ravi Foundation, and its proprietor and partner to hand over possession of two flats to buyers within 45 days along with occupation certificates. Two flat buyers had bought flats in Kandivili tower in 2002 but were not given possession of the same. The buyers had complained to the consumer forum. The commission has also ruled that the builders have to pay Rs.75,000 /- compensation to each buyer.

The partner and builder said they had never received the Rs.25 lakh paid to the proprietor and that the power of attorney given to the latter was revoked. But the Maharashtra State Consumer Disputes Redressal Commission observed that the total amount was received by the proprietor as an authorized attorney of the builder. The Bank statements also showed that the cheques were deposited in the builders account. There was nothing on record to prove that the proprietor transferred the amount in his name. The builder and the partner had also failed to intimate the bank ,after the alleged revocation of power-of-attorney by them and not to allow the proprietor from operating the bank account.

The Commission has also held that it had no hesitation in holding that the proprietor was an authorized agent of the builder and the partner and the irrevocable power-of-attorney was not cancelled as per law. The commission said that “The alleged cancellation was not made known to the public. Despite receipt of such huge amount from the complainants, the opponents refused to handover the flats. They even denied the sale although there is a registered agreement for sale. Certainly, there is deficiency in service on the part of all the opponents,” the Commission said.

Mr. Bhavesh and his brother Hardik Sheth residents of Walkeshwar Road and the second complainant brothers Mr. Pradeep and Sandeep Agarwal were Chembur based. The complainants had bought flats measuring 1650 Sq ft for Rs.25Lakhs. Even though they had paid the full amount they were only issued possession letters and the flats were not handed over to them. In 2010, they got letters from the builder and partner denying the agreement.