Developer can be fined if delays the process of handing over the possession

MSCC, The Maharashtra State Consumer Commission,  has recently directed a developer to pay a fine of rupees 20 Lakh at the rate of Rs.2,000 per day for a delay in handing over possession of a shop premises to it’s purchaser.

The bench of three judges disagreed on the pleading by the builder. The builder contended that due to some illegal construction within the shop premises by the shop owner, the Municipal Corporation did not give O.C. He further pleaded  that the building was old and required pile foundation as it was constructed on marshy land.

As per the agreement  made in June, 2005, handing over the possession of the shop was scheduled in October 2005. Due to delay in the schedule, it was given in June, 2007.  The shop  owner claimed damages due to this delay at the rate of Rs. 2000/- per day which was granted by the judges at MSCC.

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