By I C Naik
Going by TOI report (4 7 2016) it looks like finally the Maharashtra Government has taken a serious note of spate of orders of Consumer Courts taking on the errant builders, thanks to the flat buyers and Cooperative housing societies who were wary of resorting to legal remedies have started gathering courage to dare the builder lobby.
The Consumer Courts are not tolerating non-senses of the builders can be gauged by a recent stand of the State Commission in refusing bail to a builder when the bench comprising of the President A P Bhangale and member Narendra Kawde rapped the builder for his inability to handover the flat as he had sold it to a third party. Irked by this errant behavior reportedly (TOI Mumbai 22 6 2016 ) the Commission rejected a builder’s prayer for bail after he was ordered to be taken into judicial custody for failing to comply with its order to hand over a flat.
The Commission sternly observed “There is a tendency on the part of builders and developers in the city of Mumbai and suburban areas to enter into an agreement in respect of innocent flat purchaser and then to create interest in third parties.“
Unfortunately it is not widely publicized by the Government that the penal provisions of Section 27 of the Consumer Protection Act, 1986 provides for imprisonment up to three years. Where a trader or a service provider fails to comply with any order made by the Consumer Court he can be sent to jail and / or fined up to ten thousand rupees.
Reverting to TOI report (4 7 2016) that Mumbai Police has directed police stations across Maharashtra to seriously take up complaints against errant builders who violate building norms. Housing experts are happy that CM Devendra Fadnavis took “a very good decision“which the real estate industry obviously finds “disturbing“ as how many builders will remain outside jail over next 2-3 years is their anxiety. Real estate prices may sore.
Every good news reflects on something bad which was hidden so far. The Police and the State machinery knew that builders have been blatantly engaging in harassment to flat buyers and housing societies minting money for themselves a part of which reach to their connivers. The following irregularities and criminal activities were rampant going unpunished for decades together as recognized in the Circular issued last week, by special inspector general of police Prabhat Kumar to police commissioners in the state to take action according to the provisions of law when people file such complaints.
As per the circular
(i) Builders have been failing to hand over the possession on time
(ii) Developers deliver apartments without procuring the mandatory building occupation certificate.
(iii) Builders illegally build beyond the sanctioned plans.
(iv) Developers ask for 20% of the price but do not register the agreement.
(v) Developers fail to form a housing society within the stipulated four months after handing over flats to buyers.
The Police got a wake-up call only after a delegation had met the director-general of police, pointing out legal provisions which the police can use against errant builders. These provisions exist since 1963 under MOFA 1963. Housing experts and general public have perceptions (true as born out of the Circular) that some police officers are being hand-in-glove with unscrupulous builders. “It seems as if they work for builders and not the state. Many of my public meetings against certain builders have been denied permission by the local police in different areas of the city, one activist lamented. Many aggrieved flat buyers accuse the economic offences wing of the police for taking complaints lightly.
One lawyer in the construction practice candidly held the circular as a “proactive step by the police, a push from the top to take such complaints seriously. It appears this move is to pre-empt the perception that police do not act unless there is a directive from the court.”