Legal Queries

One Mr. Patwal booked the flat in 2007 and was promised possession in March 2010 but when the deadline was not met, he carried out inquiries and found that the project, related to Leaf Tower, Singapore Residency at Greater Noida, had allegedly not even started. The Consumer Court in Delhi fined him only Rs 3 lakh for his payment of Rs. 49 lakh and that too in 2007. Now the builder says he has no money to refund. Now what?

That is the State Commission of Delhi's judgment in the Consumer Complaint No.11/216 of Arun Patwal v/s M/s R.S. Builtwell (P) Ltd. (the Builder). The builder has the option of challenging the judgement But prima facie its clear deficiency in service by the builder as the project itself could not start whereas builder kept on receiving money from the buyer and his Bank.

The State Consumer Commission in this case has awarded the buyer as under:

(i) The builder to refund of Rs. 49,92,200/- to the complainant.
(ii) The Builder shall also pay interest @ 9% p.a. on the aforesaid amount from November, 2007
(iii) The Builder shall also pay a compensation of Rs. 3 lacs to the complainant. Thus around 22 Lakh as the interest for 5 years @ 9% + 3 Lakh as compensation i.e. total 25 lakh is awarded to the Complainant and if the builder fails to pay the total of approx 75 Lakh to the buyer within 30 days then shall pay 12% interest on all the total payable.

As far as builder refusal to obey the order of consumer court is concern, in that case upon expiry of 30 days i.e. on 01 May 2013 the Flat buyer can go for execution of judgement to same Consumer Commission and seek an attachment of Builder's properties, which is mostly executed by the District Collector by attachment and public auction of properties to pay the awarded judgment money as per the consumer court's directions.
There are chances that the Builder may land up serving Jail term also.

Ibrahim Deshmukh
Legal Consultant
[email protected]

Click here to see list of questions