Builder to Pay Rs. 1.45 Lakh for Cheating in Redevelopment Project


The Thane consumer redressal forum on recently ordered a city builder to pay Rs. 1.45 lakh as compensation to a property owner for cheating & delaying the possession of his flat near the Dadoji Kondeo stadium here.

Forum president Mr. U.V. Javlikar and member Mr. N.D. Kadam directed Moinuddin Badgujar, proprietor of Messers Royal Developers & Construction, to compensate landlord Mr. Yusuf Husain Miya Shaikh for defaulting on almost all conditions listed in the agreement.

Badgujar was in 2004 awarded the contract for redevelopment of Shaikh’s tenements. The contract was based on the principle of cross-subsidy in which the builder would construct six flats for Shaikh’s family and the rest and commercial space were to be retained and sold by him at the prevailing market price. “The entire ground work for the project was done by us.

Badgujar’s firm helped only to execute the orders. We were to be given 5 flats of 540 square feet area each and another smaller flat of 287 square feet area,” said Mr. Shaikh.

Two years after the contract was awarded to Royal Developers & Construction company, Mr. Shaikh noticed deviation in the plans sanctioned by the TMC and the actual constructed building.

“He has illegally built 4 commercial shops & other flats which are not part of the plan. The flat area promised to us and cleared by the civic authorities is not the area given to us by the builder. I have got 2 flats on the third floor. After I measured the area, I realized that I have been cheated of 72 square feet. At the then market price, the builder should pay me Rs. 2.88 lakh for the loss as it amounts to cheating,” Mr. Shaikh said. He dragged Badgujar to the forum.

The forum directed the builder to pay Mr. Shaikh Rs. 1.45 lakh and to finish the incomplete works in 3 months of the order or pay a fine of Rs. 500 per day.


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