Builder fined 6.5 L for not giving amenities

In a report appearing in Times of India dated 6-1-2011 filed by Rebecca Samervel, a builder has been fined Rs 6,50,000 for deficiency in providing promised amenities and not securing the Occupation Certificate of the Building.

The report is reproduced below;

Mumbai: A consumer court order has cheered scores of home-buyers who are misled or even duped by builders. In 1997, a retired IOC executive and his son booked a flat in Goregaon (east) in a project advertised as “exclusive homes for exclusives” and which promised various amenities. However, not only have they not got most of the promised amenities but their complex is still surrounded by hutments and they do not even have an occupation certificate (OC).

The State Consumer Disputes Redressal Commission has now asked Ravi Ashish Land Developers to pay the Roys Rs 5 lakh for mental harassment and agony plus Rs 1,000 per month from August 1998 till the procurement of the OC.

FLAT MISERY

In 1997, the builder had promoted his project in Goregaon (E) as “exclusive homes for exclusives”

Flat buyers were promised a proper approach road, a swimming pool, garden, a playground, a nursery for kids, club house and jogging tracks

However, even after moving in, the complainant found no sign of amenities or proper approach road. Neither had the building been given an OC HOUSE WOES ‘Builder must obtain occupancy cert’

This amounts to nearly Rs 1.48 lakh. The builder will also have to pay the Roys Rs 25,000 towards the cost of litigation.

The Roys, father Pradip Kumar and son Anirban (a lawyer), claimed that they had paid the entire cost of the 825-sq ft super built-up area of the flat amounting to Rs16.5 lakh to the builder within five months from the date of issuance of allotment letter on March 5, 1997. According to the Roys, the builder had assured them that there would be a seven-storey building with three wings, Arpan, Darpan and Samarpan, and three towers, namely, Deep, Darshan and Maharaja Retreat, and 12 row houses in the Gaurav Empire Housing Complex and there would be a proper road and amenities like adequate street lights, a flowerdecked landscaped garden, a club house and a community hall, playgrounds and a kindergarten school, jogging tracks, a gymnasium, a swimming pool, a library, surrounded by a compound wall with a security gate at the main entrance of the layout. They were assured their flat would be ready by June 1997.

However, even after 13 months of the originally promised date, they
failed to get legal possession and the promised amenities were nowhere in sight. Since their landlord asked the Roys to move out of their premises in July 1998, they had no option but to shift to the flat when, according to them, it was neither habitable nor did it conform to the agreement. Citing deficiencies in the complex, the Roys complained against the absence of an approach road, non-availability of regular water supply from BMC, absence of an OC, poor quality of construction and poor maintenance.

They claimed a refund of the paid amount and also a difference arising from the current market rate of the flat and filed a complaint with the state commission on January 8, 2000. The builders filed a reply stating that they never promised the Roys that the entire housing complex would be completed by June 1997. Denying the charges levelled by the Roys, the builders also stated that construction had been delayed on account of various factors, like a sudden and a continuous slump in the estate market and dealings with about 900 slum dwellers with several litigations and orders of injunction. They also stated that the liability of the flat purchasers in the building was to the tune of Rs 27 lakh and only upon payment of that liability amount together with current property tax, if any, would the municipal corporation issue an OC.

The commission observed that there was no evidence to prove that the flat owners had outstanding liabilities. Further, it stated that it was a statutory as well as contractual obligation on the part of the builder to procure an OC. Regarding the promised amenities, the commission stated that even after 13 years all that the builder had managed to do was barely construct two buildings; there was only one road leading to these buildings from the nearby municipal road. “In any view of the matter, we find that the state of affairs of the present building of the complainants (Roys), which is seen from the photographs and which is admittedly surrounded by the hutments and slum dwellers, cannot be said to be a dream house which was advertised by the builder and therefore, there is deficiency in service.”

Two issues that plauge apartment owners.

Apartment owners in cities are plagued by two major issues.

One is that the builder seldom gets an occupation certificate for the building and the other is that the builder seldom transfers the title and interest of land to the society on which he has constructed the building.

The reasons for this behavior can be found in personal greed and the lack of strict application of law by the law makers and law keepers.

According to Maharashtra Ownership of Flats Act, an act under which all apartments are sold in Maharashtra, a builder can not give possession without first getting an OC (Occupation Certificate). But builders do give possession and the municipal corporations extend facilities like garbage collection, sewerage and water connections to such buildings. According to MOFA all such buildings are illegal and the builder is punishable with a penalty calculated on a daily basis for giving possession without obtaining an OC.

Obtaining an OC requires that the builder subject his project to final scrutiny by the local government officers and payment of fees for infrastructure development like roads, gutters, sewerage, storm water drains, etc. The builder in connivance with the local government officials often fails to pay this fees and disappears from the scene.

He starts another project and does the same trick there too. No builder has yet been penalized or his business license canceled because he has not obtained OC for his buildings.

The other matter of conveyance of title and interest in land to the society. This too is not done deliberately because the builder even after getting money for every square inch of land and building constructed wants to retain control over the land just in case some future government relaxation in development rules may allow him to add some more apartments to the same building and on the same land.

To add insult to injury, local governments, like the Mumbai Municipal Corporation impose a higher charge for water supply, sewerage and garbage collection. Also all such buildings are illegal and subject to threats of demolition from the corporation.

What does the Maharashtra Chamber of Housing Industry (MCHI) have to say about this? What has it done to rein in the black sheep amongst its members? How many builders have been thrown out of the the association for violating the letter and spirit of laws meant to protect purchasers of apartments?

In light of this the recent article in Times of India about government considering giving amnesty to pre-2001 buildings within municipal limits of Bombay is a ray of hope for societies that have been left in the lurch by unscrupulous builders.

Read the article here

PNB does not get it!

I have a current account with PNB (Punjab National Bank) at Mira Road. Today I went to the bank to request a new cheque book for this account as I had run out of cheque leaves.

The bank asked me to submit the requisition form from the old cheque book. It also asked me to write the complete mailing address at the reverse of the requisition slip along with my phone number.(How stupid of them, they already have all these details on their record. What if I had mentioned a different address? Would they have sent me the cheque book at that address?)

Then the lady at the counter told me that I will soon get an SMS and an alert about the impeding arrival of my new cheque book.

And that the cheque book will arrive in 10 DAYS!

When I remarked that earlier one could get the cheque book the same day, she told me the bank is now computerized and cheque books are processed and dispatched centrally.

Whereas the whole world is going for de-centralization, PNB just does not get it and is going in the reverse direction.

When I got slightly upset, the lady got more upset than me and directed me to speak to her manager!

Fat good that was going to do anyway!

The Rot Within

Corruption stories abound. No area of public life has been spared. Ketan Desai, Chairman of Medical Council of India (MCI) was recently caught for accepting 2,00,00,000 from a Punjab based medical college for allowing medical seats.

If MCI takes bribes for allowing medical seats, what is wrong with Medical colleges asking for huge fees and accepting bribes?

If Ketan Desai is accepting bribes, I am sure he must have paid a handsome amount to land the appointment as head of MCI in the first place.

The question is who appointed him as president of MCI?

If India has to make progress, the rot within has to be stemmed. Because corruption allows those with money and without any merit to corner opportunities and those with merit are deprived of those opportunities.

State decides to crack down on illegal buildings

From a report appearing in Times of India, dated 24th April 2010.

TIMES NEWS NETWORK

Mumbai: Carrying out illegal constructions in the civic corporation or municipal council limits will now prove costly for a civic official, literally. To check the rampant unauthorised constructions across Maharashtra, the state government on Friday brought about a new law to penalise the designated officer who permits such illegalities.

Both the Houses of the state legislature on Friday approved the Maharashtra Municipal Corporations, Municipal Councils and Maharashtra Regional and Town Planning (Amendment) Act, 2010. As per the provisions of the modified Act, a designated officer will be appointed to ensure that there are no unauthorised constructions in the jurisdiction of the respective municipal corporation, council, panchayats and industrial townships.

The new law stipulates that “if the officer fails to take action, she/he faces imprisonment for one month and/or a fine of Rs 25,000’’.

Stressing the need for amendment to the existing law, Sachin Ahir, minister of state for urban development, who piloted the Bill in the legislative assembly, said that whenever action is initiated against illegal construction, a stay order is obtained from the court, which is not vacated for several months. “It is known that such stay orders are granted liberally,’’ he said.

In March this year, the state had also decided to set up “special courts in the area of municipal corporations with the approval of the high court to ensure speedy trial of offences under municipal laws and the MRTP Act under which action is taken to demolish illegal structures’’.

To ensure that the Act is effective, the government has already sanctioned the deputation of an additional commissioner of police or deputy commissioner of police to the municipal corporation, said Ahir, explaining that the municipal commissioner can decide who the designated officer should be. “This is being done so that blame is not passed around, and a person is held responsible,’’ said Ahir.

The government also admitted the failure of various agencies to stop the growth of unauthorised constructions.

In the past, the government has sanctioned proposals holding the local assistant municipal commissioner and the police inspector responsible for unauthorised constructions in areas under their jurisdiction, but till date, no action has been taken against any officer.

Do not buy parking spaces!

Builders have been taking the gullible home buyers for a ride. For a very long time builders have been selling open and covered parking spaces. Most of these transactions are without any legal documentation being executed between the buyer and the seller and in cash.

These transactions are in contravention to the laws of the land and thus illegal.

Builders sell apartments on Super Built Up area basis. Such a sale includes all the amenities and plot on which the building stands. Open spaces are thus already sold through the basic sale agreement. Stilt parking also come under the ambit of open spaces which can not be sold as per Maharashtra Ownership of Flats Act.

A recent Bombay High Court judgment has affirmed this position.

Click here to see the judgment.

If you have already bought a garage/open parking /stilt parking, then the only recourse is to get a refund from your builder within 3 years. If you do not do this within 3 years a statute of limitation applies.

Rahul Gandhi takes the local train

Rahul Gandhi, Indian National Congress Member of Parliament and Prime Minister in waiting visited the city of Mumbai (Bombay) in the face of threat of disruption by Shiv Sena.

The Shiv Sena has been claiming that Mumbai (Bombay) belongs only to the local Marathi Manoos, while all other political parties, including its one time allay BJP has distanced itself from the Sena on this issue and subscribe to India for Indians doctrine.

To rub in the slat into the raw wounds of Shiv Sena, Rahul Gandhi boarded a local train from Andheri Sation and changed over at Dadar to travel to Ghatkopar where he is meeting the youth from a slum

When was the last time Uddhav/Raj/Bal Thakkrey traveled by local train?