Defaulting builder has told to refund housing society

Q: A comprehensive judgment in the society's favor for various defaults committed by a builder.

Lalit Verma, Mumbai

8th February 2016

Real estate News in Malad East, Mumbai

default builder

dhruv constructions

city life developers

dhruv park

dhruv park at orlem malad

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At last there are some good news for the owners of the societies. The commission directed the builders to reimburse Rs 5,50,900 incurred to obtain water connection and for borewell. This amount was to be paid along with 12% interest from the date of the complaint. The commission also directed the builder to provide separate tanks, one for borewell water to be used for sanitary purposes, and the other for municipal water for potable purposes.

Miraniyatin, Mumbai

8th February 2016

Comment

Yes, As per the society residents, the builder had not drawn a conveyance deed in its favor. Because of that there was no water, and the society had to obtain a connection at a higher rate in the absence of an occupancy certificate. Also, property tax had not been cleared and there were leakages in the flats.

david.m,

8th February 2016

Comment

Very sad. After investing a hefty amount, flat owners have to face such issues. I also heard that there is no recreation ground, club house and swimming pool as promised, shortage of exterior open space required to be maintained around the buildings as per the Development Control Regulations, the parking space were sold off illegally and a corpus of Rs.32.5 lakh was not given to the society.

Gautam G,

8th February 2016

@Gautam,
But builder is saying that the complaint was time-barred as it had been more than 4-yrs since the possession was given. It said that conveyance deed was pending as it had to be executed in favor of a federation to be formed of all societies after completion of the entire project.

Kalki K,

8th February 2016

But see the commission's decision. The commission rejected the excuses exerted by the builders. It said that no matter what the reason, conveyance would have to be executed in favor of the federation, and if this was not possible, get a separate conveyance for the society within one year. If delayed, the builders were held liable to pay the society a penal compensation of Rs 5000/day.

Gautam G,

8th February 2016

Now-a-days it has become common to find builders committing various defaults. Dhruv Constructions had entered into a development agreement with City Life Developers for construction of several residential buildings in a project called ''Dhruv Park'' at Orlem in Malad. As per the agreement, one of the buildings was Agarwal Trinity Towers, comprising 24 floors. In 2005, agreements were executed with purchasers for sale of flats in this building. Possession was given in March 2008 and a society named Dhurv CHS was formed. Now the owners of these flats have to face lot's of difficulties.

Gautam G,

8th February 2016

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