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In a recent case, the Nagpur District Consumer Disputes Redressal Commission ordered Sunil Fating, the builder of Infra Estate Builders and Land Developers, to refund Rs 15.6 lakh to two senior citizens who had purchased plots from him in November 2014. The commission also imposed a fine of Rs 50,000 on the builder for physical and mental harassment and directed him to pay Rs 720,000 towards litigation charges to the complainants.
The two senior citizens, Ashok Ingole and Seem Thakre, had paid Rs 6.25 lakh and Rs 76.37 lakh, respectively, to Fating for the purchase of plots at Jamtha. The builder had assured them that the plots would be registered in their names by January 2016. However, Fating landed in a dispute with the original landowner and cancelled the deal. He then promised to provide them with plots of equal measurements in other layouts and pay 31.5 lakh interest on their paid amount, but he failed to do so.
The builder argued that the complainants had not deposited the full amount, but after perusing the records, the commission observed that Fating was involved in unethical practices by not refunding the money. The commission also noted that the builder never remained present in his office and did not take their calls.
The real estate sector in India has been riddled with cases of delayed projects and non-delivery of promised properties, leaving homebuyers in the lurch. In addition to delayed projects, many real estate developers in India have been accused of fraudulent practices such as misrepresenting the features of the property, hiding crucial information, and taking deposits without proper approvals or permits. Such practices have led to several high-profile legal cases, with homebuyers seeking redressal for their grievances.
One such example is the Jaypee Infratech case, where thousands of homebuyers were left stranded after the developer failed to deliver their promised properties. The case went to the Supreme Court, which directed the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the developer. The court also ordered the formation of a committee of creditors to oversee the resolution process and protect the interests of the homebuyers.
Similarly, in the Amrapali Group case, the developer was accused of siphoning off homebuyers' money and diverting it to other projects. The case went to the Supreme Court, which ordered the attachment of the group's assets and the appointment of a court receiver to manage the properties and complete the stalled projects.
Under RERA, developers are required to register their projects with the regulator and provide all the necessary details, including the timeline for completion and the funds they have collected from buyers. They are also required to deposit 70% of the funds collected from buyers in a separate account, which can only be used for construction purposes. However, many developers have not complied with these requirements, leading to a rise in complaints from home buyers.
The Nagpur District Consumer Disputes Redressal Commission's decision to direct Sunil Fating to refund the money to the complainants is a step in the right direction. However, more needs to be done to protect home buyers in India from unscrupulous developers. The implementation of RERA needs to be strengthened, and developers who fail to comply with the law should be held accountable.
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