Retired stationmaster gets justice on behalf of frustrated home buyers when the consumer court sentences an errant builder in Mira Road for six years in a landmark judgment
The Sai Akruti Empire project in Navghar where Chandraprakash Singh had booked two flats
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A retired railway station master has struck a landmark blow against errant builders on behalf of frustrated home buyers.
In a rare occurrence, the Maharashtra State Consumer Disputes Redressal Commission has sentenced a developer to six years in jail for failing to comply with its order to register the sale and hand over possession to Chandraprakash Singh, a Mira Road resident who had paid for two flats in 2010.
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Notably, the commission has given the highest possible punishment for the builder - three years in each case flat to be served consecutively, as the consumer had booked two flats. While it is common for builders to delay handing over of possession several years beyond the deadline, this is a rare instance of someone being held responsible.
The builder in question, Amit Palshetkar of Sai Ninad Enterprises, has been arrested and sent to judicial custody. mid-day has a copy of the order dated August 9.
Singh retired from the railways in 2010 and had booked a two-bedroom and a one-bedroom flat in Sai Ninad's proposed Sai Akruti Empire project in Navghar.
The total cost of the two flats was Rs 42.52 lakh. By August 2010, Singh had paid builder Rs 11.40 lakh towards the 2BHK and Rs 7.50 for the 1BHK.
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The completed houses were to be handed over by 2013. However, the building is still not complete. Singh filed a case in the consumer court via consumer advocate Mukesh Sharma.
'Hand over flats'
On April 20, 2016, Justice (retd) AP Bhangale, who retired Bombay High Court judge who heads the commission, issued an order in favour of Singh, giving Palshetkar two months to register the agreement and hand over the flats. But he did not comply with the order even after a year.
"Following the non-compliance, the court had issued a non-bailable warrant against the builder in May," said Sharma.
"On August 7, builder Palshetkar was arrested and sent to judicial custody. On August 9, the court ordered six years imprisonment (three years in each consumer complaint) in the two cases. This is the highest possible punishment as per the law."
The court also ordered Palshetkar to pay Singh a compensation of Rs 70,000 and the court a penalty of Rs 20,000.
"The court gave sufficient opportunities and enough time to the builder but he disregarded the court and willfully disobeyed its order. Now, he has learnt a lesson. We have also registered a FIR against the builder at the Navghar police station."
'Invested life's savings'
Singh told mid-day that he had invested all his life's savings in the two flats. "I have two sons and planned to shift to the two flats with my entire family. But the building is still not ready. I faced a lot of problems as I had already paid him 50% of the total price. Every time when we used to meet him he would tell us that he will hand over the flat soon. But nothing happened and he even refused to pay back my money."
Palshetkar could not be reached for comment as he is in jail. When mid-day visited Palshetkar's office in Mira Road, we found it shut. His advocate Ashok Yadav said, "We gave a settlement proposal to the complainant but he did not agree to it. We will appeal against the order."
When we visited the site of Sai Akruti Empire, the project was incomplete. Several buyers had installed private security guards outside their incomplete houses, alleging that Pakshetkar had sold the same flats to multiple people illegally.
A project supervisor on the site said: "The company ran into big losses and we failed to complete the project. Payment for the workers has also been withheld for several months."
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