Emaar MGF Land ordered to cough up Rs 2 crores as penalty

The apex consumer commission has asked Emaar MGF Land Ltd, to repay nearly Rs 2 crores, along with an interest of 10%, to a 72-year-old woman, for its failure to give possession of an apartment for the last eight years, in its Hyderabad project

The apex consumer commission – the National Consumer Disputes Redressal Commission (NCDRC), has asked real estate major Emaar MGF Land Ltd, to pay around Rs two crores to a 72-year-old woman, for failing to hand over an apartment in Hyderabad booked eight years ago.

The NCDRC also directed the company to pay an interest of 10% per annum from 2010, when the complainant had paid the final installment, till the full amount is paid back by the builder.

A bench of justice JM Malik asked the builder to pay Rs 1,93,89,597 to Hyderabad resident Devikarani Rao Nallamala, rejecting the firm’s defence that the work could not be completed due to a notification by the Andhra Pradesh government on October 8, 2010.

“The principal deficiency on its (firm’s) part, is that it went on accepting instalments unashamedly, even after the notification was published on October 8, 2010. The opposite party (OP) is a renowned promoter and builder. This lady being a widow, should have been treated with kid gloves. However, the OP was interested in feathering its own nest, i.e., to make profits at the cost of others,” the bench said.

See also: Landmark win for home buyers: Consumer commission imposes Rs 3 crore penalty on Unitech

It further noted that eight years had elapsed and the woman had not received possession of her house and there was no guarantee on whether she would get the house during her lifetime.

“It is well said that justice delayed, is not only justice denied, it is also justice circumvented, justice mocked and the system of justice undermined. We hereby direct that the amount paid by the complainant be returned to her, along with interest at the rate of 10% simple interest from dates of deposits till its realisation,” the bench said.

According to the complaint, Nallamala had booked a 3-BHK apartment in the firm’s proposed project in 2008. The total consideration for the apartment was Rs 1,93,89,597, which she paid by 2010, and was told that she would get possession of the apartment by mid-2011.

Meanwhile, she got to know that the Andhra Pradesh High Court had ordered a CBI investigation against the firm and there was no chance of getting possession in the near future. Thereafter, the complainant first sent a legal notice to the firm, seeking refund of her amount and then approached the NCDRC last year.

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