The Maharashtra State Consumer Disputes Redressal Commission recently directed a builder to compensate a Navi Mumbai family with INR 2.75 lakh for poor service and defects in their flat. The complaint, filed in 2019 by Ulwe residents Vir Bhan Sharma (65) and Disha Sharma (27), accused Dhulchand Naik, the proprietor of M/s Ashtavinayak Developer, of failing to address multiple issues, including severe leakage, non-functional lift, and improper fittings in their flat. The case highlights ongoing concerns over unfair trade practices in the real estate sector, with builders being held accountable for poor maintenance and unfulfilled promises.
Ulwe residents Vir Bhan Sharma (65) and Disha Sharma (27) approached the Maharashtra State Consumer Disputes Redressal Commission in 2019 with complaints against Dhulchand Naik, the proprietor of M/s Ashtavinayak Developer. Their grievances centred around issues with their flat, purchased for INR 55 lakh in 2017, which included water seepage from the master bedroom's west-side wall and ceiling, malfunctioning water taps and flush tanks, and a lift that remained out of service for extended periods. In addition to these defects, the builder collected INR 31,500 as monthly maintenance for 12 months in advance and INR 25,000 towards society registration, neither of which were used effectively.
The commission, after reviewing evidence presented by the complainants-such as affidavits and photographs that showed clear defects-found that the builder had not fulfilled his obligations. According to the commission, despite several complaints and follow-ups, the builder failed to rectify the issues, thus violating consumer protection laws and exhibiting clear deficiencies in service. This decision underlined that demanding additional charges for maintenance and society registration without fulfilling the agreed-upon services amounted to unfair trade practices.
The complainants also claimed that the builder had failed to form the cooperative society as promised, and as a result, the family experienced disruptions, including disconnections of essential services like water and electricity due to unpaid bills. The Sharmas further alleged that they had to personally handle repairs, spending INR 26,500 on repainting the flat and INR 100,000 on fixing furniture and other damaged items, which were affected by the water seepage.
Despite their repeated efforts-through multiple letters and a visit to the builder's office-the Sharmas were left with no option but to take the legal route, ultimately leading to the compensation order from the commission.
In conclusion, this case highlights the critical issue of poor service and lack of accountability in the real estate sector, particularly in relation to newly constructed homes. The ruling in favour of the Sharmas serves as a warning to builders to fulfil their obligations and provide the services promised to property buyers. For homeowners, this case highlights the importance of legal recourse in situations where developers fail to honour agreements. The compensation of INR 2.75 lakh is a reminder that consumer rights, particularly in property transactions, should be respected, and failure to do so will not go unpunished. This case also reinforces the need for transparency and commitment from builders, ensuring that property owners do not face inconvenience or financial losses due to negligence.
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