PP – CONSUMER PROTECTECTION ACT 1986 – CASES

Jay Doshi
Roll No: 1607
SEMESTER- X

ARTICLE 1: CONSUMER COMMISION ORDERS BUILDERS TO PAY

SOCIETY Rs. 50L FOR PROBLEMS DUE TO LACK OF OC

The Royal Co-operative Housing Society

located in Tilak Nagar, Chembur. The
society was recently redeveloped in the
year and the possession was handed in
2005-2006 by Vinayak Builders. Due to the
absence of OC (Occupation Certificate) the
State Consumer Commission of Mumbai
asked the Builder firm Pay 50L for the
expenses the incurred.
Due to the absence of occupancy
certificate and completion certificate the
tenants had to pay excess water charge
and property tax at a doubled rate.
An additional amount of 5.5L was
collected from new residents for the
MHADA membership, which was never
paid to MHADA.
Additional damages were seen like
seepage during monsoons and peeling of
plaster. Vinayak builders claimed the
building was in good condition and didn’t
need any repairs.
The builders were penalized an amount of
Rs 2000 per day if they couldn’t obtain the
certificates in a given time frame.
 ARTICLE 2: BUILDER MUST PAY RS 90K IN ANDHERI SOCIETY CASE

The Southern Mumbai District Consumer Disputes Redressal Forum asked the builders to pay up
the money spent by 50 members of Royal palace co-operating housing society, who were in a
dispute with them for over a decade. They were also directed to hand over the conveyance
papers to the society within a limited time on their own expense.
The builders were instructed to pay out around 1L Rs. As the total compensation. Even after a
complete 24 years of possession the builders have not fulfilled the commitments.
Analysis:
All the consumers should have all the basic knowledge while dealing in
properties and they should keep all the documents, permits and the certificates
up to date and always approach the state consumer commission if any issues
faced by them regarding the builders or any other matters related to it.
All the consumers should be aware of about the basic laws and try to take
action against the party if any violations.

Inferences:
1. All the consumers should know the rules and regulations regarding the
developments and property matters.
2. Consumers should always have a legal approach in such matters.
3. Consumers and the developers should keep them updated regarding the
latest updates and new rules laws formed.