Maharashtra SCDRC orders Ashtavinayak Developer to pay for poor service
Real Estate

Maharashtra SCDRC orders Ashtavinayak Developer to pay for poor service

The Maharashtra State Consumer Disputes Redressal Commission recently ruled that demanding additional charges for maintenance and a large sum for society registration without forming the society or delivering the agreed-upon services constitutes unfair trade practices. As a result, the commission ordered a builder to pay Rs 2.75 lakh in compensation to a Navi Mumbai family.

The commission noted that the complainants, Vir Bhan Sharma and Disha Sharma, had provided evidence, including an affidavit and photographs, to prove the existence of defects in their flat, such as leakage and seepage from the walls and ceiling, a non-functional lift, and improper fittings. This evidence went uncontested, and despite multiple complaints and follow-ups, the builder failed to address the issues, clearly demonstrating a deficiency in service.

In 2019, the Sharmas filed a complaint against Dhulchand Naik, the proprietor of M/s Ashtavinayak Developer, after facing numerous issues in their Rs 55 lakh flat, which they had taken possession of in 2017. Among the problems were leakage and seepage from the west side wall and ceiling of the master bedroom, improper water tap fittings, non-functioning flush tanks, and a lift that remained out of service for several days. They also claimed that Naik charged them Rs 31,500 for a year's maintenance and Rs 25,000 for society registration, yet failed to form the promised co-operative society or settle the water and electricity bills, leading to service disconnections for long periods.

The Sharmas reported that they had repeatedly written to Naik, requesting rectification of the issues. A letter delivered to his office assistant in November 2017, who acknowledged the concerns, did not result in any action. Another letter sent by registered post in June 2018 was returned unclaimed. Left with no other choice, the Sharmas undertook the necessary repairs at their own expense after their complaints went unaddressed.

The Maharashtra State Consumer Disputes Redressal Commission recently ruled that demanding additional charges for maintenance and a large sum for society registration without forming the society or delivering the agreed-upon services constitutes unfair trade practices. As a result, the commission ordered a builder to pay Rs 2.75 lakh in compensation to a Navi Mumbai family. The commission noted that the complainants, Vir Bhan Sharma and Disha Sharma, had provided evidence, including an affidavit and photographs, to prove the existence of defects in their flat, such as leakage and seepage from the walls and ceiling, a non-functional lift, and improper fittings. This evidence went uncontested, and despite multiple complaints and follow-ups, the builder failed to address the issues, clearly demonstrating a deficiency in service. In 2019, the Sharmas filed a complaint against Dhulchand Naik, the proprietor of M/s Ashtavinayak Developer, after facing numerous issues in their Rs 55 lakh flat, which they had taken possession of in 2017. Among the problems were leakage and seepage from the west side wall and ceiling of the master bedroom, improper water tap fittings, non-functioning flush tanks, and a lift that remained out of service for several days. They also claimed that Naik charged them Rs 31,500 for a year's maintenance and Rs 25,000 for society registration, yet failed to form the promised co-operative society or settle the water and electricity bills, leading to service disconnections for long periods. The Sharmas reported that they had repeatedly written to Naik, requesting rectification of the issues. A letter delivered to his office assistant in November 2017, who acknowledged the concerns, did not result in any action. Another letter sent by registered post in June 2018 was returned unclaimed. Left with no other choice, the Sharmas undertook the necessary repairs at their own expense after their complaints went unaddressed.

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