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Monday, June 14, 2010

Builder told to pay Rs 2,000 a day for delaying shop possession

In a recent order that will cheer property buyers, the Maharashtra State Consumer Commission has directed a developer to shell out Rs 20 lakh at the rate of Rs 2,000 a day for the delay in giving possession of a shop premises to a purchaser. The significance of the order is that it enforced 'per day' damage clause in the sale agreement, according to lawyer Bindu Jain who represented aggrieved party Dharshi Dedhia. Often, builders have an agreement clause that assures buyers a daily damage for delayed possession, but few buyers invoke it, Jain said. The commission said, "To issue notice for delivery of possession without occupation certificate was an illegal act. We find that there is no ground to justify the delay." Dedhia possessed a shop and godown in Rajhans building in Thane as a tenant. The original landlord sold the premises to Padmavati Enterprises who decided to redevelop the property and agreed to give a shop of 366 sq ft to Dedhia at a subsidised rate. The agreement was made in June 2005 to hand over possession in October 2005, but the possession was given in June 2007 without an occupation certificate. As a result, Dedhia claimed damages as stipulated in the agreement. Dedhia took up the matter with the Thane district consumer forum, which in January 2009 ordered the builder to pay him Rs 20,000.
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(source-toi)

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