Gujarat: Man paid EMI, builders sold flat to somebody else

AHMEDABAD: A consumer court has ordered two builders to refund the money paid for a flat and to pay compensation of Rs 1 lakh for mental harassment after they sold the flat to someone else, though the customer who booked the flat continued to pay EMIs.


According to case details, Rajeev Singhvi had booked a flat in a

scheme

Vrundavan Residency in Motera, being developed by one Varun Enterprise, in 2012. He paid Rs 5 lakh towards the booking amount. He was promised possession in near future. Singhvi obtained bank loan and paid Rs 20 lakh more to the builders - two partners in Varun Enterprise - Bipin Gajjar and Jigar Parmar.

Singhvi continued to pay interest to the bank on the loan, but he did not receive possession of the flat. He continued to inquire with the builders, who remained elusive. In 2015, he came to know that the construction of flats was over, but to his shock, he also found that the flat that was promised to him was handed over to one Shailesh Prajapati, a friend to one of the builders.

He immediately brought the alleged fraud to the notice of bank authorities, but it was too late by then. He approached the Gujarat State Consumer Dispute Redressal Commission for directions to the builders to either refund Rs 25 lakh that he had paid or to hand over possession of the flat.

After hearing the case, the consumer commission found it deficiency in service and unfair trade practice on part of the builders. Since the flat was allotted to someone else, it was not possible to order the builders to give possession of the flat to Singhvi. Hence, the builders have been asked to refund Rs 25 lakh with 9% interest. But as the consumer continued to suffer for seven years, the court ordered the builders to pay Rs 1 lakh to him towards compensation for mental harassment.