Nahar builders asked to pay Dubai man ₹11 lakh

The State Consumer Disputes Redressal Commission recently directed Nahar Builders Ltd. to return ₹11 lakh with 9% interest from 2009 to a Dubai resident.

Nahar was unwilling to give possession of a flat in Powai to the man because he was paying the amount on his own and not availing the contractual HDFC loan.

In June 2009, Makarand Shirgaokar booked a flat at Nahar Amrit Shakti in Powai under the 20-80 scheme for total consideration of around ₹60 lakh. Mr. Shirgaokar was told by the builder that he would have to open an account with HDFC Bank, and pay 20% of the cost before the execution of the agreement, and 80% at the time of possession.

Mr. Shirgaokar paid around ₹12 lakh in June 2009, and the balance was to be paid in October 2011. However, Mr. Shirgaokar contends that the building was not ready by October 2011 and he was not given the possession of the flat.

In January 2014, he received a letter from Nahar intimating him that he could take possession of flat after he deposited the balance ₹48 lakh sale consideration. The builder also told him to pay around ₹9 lakh more for certain facilities to different people, and that he could avail to a loan from HDFC for this.

Mr. Shirgaokar said he was not interested in the loan and would make the whole payment to Nahar. However, the builder insisted he pay around ₹48 lakh to HDFC as a loan had been sanctioned in his favour.

Nahar kept reminding Mr. Shirgaokar to make the payment to HDFC, but he refused to. After much back and forth, the builder finally said if he does not settle the loan, the flat agreement would be terminated, and did so in July 2014.

The Bench of presiding judicial member D.R. Shirasao and member A.K. Zade directed Nahar to refund around ₹12 lakh with interest on the amount @9% per annum from the date of termination of agreement in 2014. The Bench also directed the builder to pay compensation of ₹50,000 and ₹10,000 towards costs of litigation.

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