Consumer forum can compel builder to execute flat agreement


By Accommodation Times Bureau

When housing projects get delayed, builders often at tempt to capitalize on price escalation by trying to get rid of their earlier commitments so that the same flat can be sold to another buyer at a higher rate. Can a consumer who has paid the booking deposit approach the consumer forum to force the builder to execute the agreement?

Case Study: Wasim Iqbal Mamdani had booked a flat in a being constructed by RK Constro Projects near Aurangabad.Cost of the flat was Rs13.75 lakh, of which he had paid Rs 2.82 lakh as booking amount. Due to financial problems, Mamdani transferred the booking with the advance payment to Sonal Devendra Jain, through a transfer agreement dated October 7, 2011. The builder transferred the receipt for booking de posit in favour of Jain. It was decided that Jain would pay the balance to the builder in instalments linked to stages of construction. However, agreement for sale of the flat was not executed by the builder.

Construction work did not commence till May 2013, and the first slab of building was completed in July 2013. Yet the builder avoided executing the agre ement. Jain learnt that the builder was trying to sellthe flat to a third party .

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