Consumer Commission directs Builder to pay Rs.50K to 43 Home Buyers

The Gujarat State Consumer Dispute Redressal Commission has directed builders of a scheme to pay Rs 50,000 each to 43 flat owners because each of them got 1 square metre less parking area due to illegal construction.

In 2016, the Surat’s Consumer Forum had ordered 5 partners of the construction firm to compensate 43 flat owners with Rs 1 lakh each for illegal construction of 3 shops which reduced the parking area for residents. 

The case involved a scheme named Krishna Park in Udhana in Surat. However, the commission thought that the compensation amount was on higher side for 1sq mt loss of land & reduced it by half. This decision to reduce compensation was also influenced by rectifying measures taken by the builders in other matters like obtaining a Building Use certificate from the civic body.

The builders were sued first in 2014 by the residents of Krishna Park when the Surat Municipal Corporation cancelled BU certificate for illegal construction of three shops in 150 sq metre in parking area & pointed out unauthorized drainage connection. 

The residents moved the Surat District Consumer Dispute Redressal Forum (Additional) & complained that the builders had promised marketable flats with enough parking space. However, there were many deficiencies in service on their part by not putting up construction according the plan & by not adhering to building byelaws. They complained that the builders had promised parking space of 1,882 sq mt, but provided only 1,834 sq mt. The builders did not attend proceedings before the forum, which fined them with Rs 1lakh to be paid with 9 per cent interest to each of 43 flat owners besides a small amount towards mental torture & harassment.

The builders challenged this order before the commission. By then, they had paid impact fee & got the illegal construction regularized, obtained the BU certificate & addressed other issues. However, the problem of less parking area was not resolved, & the builders requested the commission to reduce the compensation amount. The commission reduced it from Rs 1 lakh to Rs 50,000 with 7per cent interest.

Earlier this year, the National Consumer Dispute Redressal Commission ordered a builder in Surat to pay Rs 2 lakh to 23 flat owners of Swastik Milestone Residency in Vesu area for not providing adequate parking space in the scheme.  

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