Developer asked to pay monthly rent to flat owner

In a recent verdict, the Andhra Pradesh State Consumer Disputes Redressal Commission (APSCRDC) ordered a developer to refund the monthly rent to flat owner, as the former refused to hand over the flat. The Commission also upheld the decision of Visakhapatnam District Consumer Forum-I on compensation to the customer.

Nagari Parameswara Rao, a resident of Visakhapatnam, was a member of a group of 20 Low Income Group flat owners. The group entered into a contract with Sai Thirtha Constructions for development of the place. According to the deal, the developer has to return a three bedroom flat along with car parking place and other facilities to the owners. Mr. Parameswara Rao passed away in June, 2003. Since then, the developer refused to hand over the flat in spite of execution of sale deed. Mr. Rao’s wife Ch. Vijaya Lakshmi Parameswara Rao filed a case in the District Forum requesting to direct the developer to pay Rs.2,000 for monthly rent from October, 2003, the month she was supposed to get possession, along with damages and court costs.

The developer resisted the case by arguing that Mr. Parameswara Rao was supposed to submit the land title to them and Ms. Vijaya Lakshmi had to pay Rs.20,000 towards the charges of underground drainage and municipal water connection.

However, there was no evidence provided in support of these arguments.

The District Forum directed to hand over the flat to the customer along with Rs.78,000 for loss of monthly rent, compensation of Rs.25,000 and Rs.1,000 towards court costs. The aggrieved company contended the decision in the State Commission.

It argued the District Forum should have directed the complainant to hand over the land title deed to them, besides the payment of Rs.20,000 towards the underground drainage and municipal water charges.

However, State Commission upheld the decision of the lower forum as the arguments of the builder were not substantiated with any evidences. It directed the builder to deliver possession of flat, besides payment of compensation and rent.

It also ordered Ms. Vijaya Lakshmi to hand over the original title deed to the builder on the date when flat is handed over to her. Time given for compliance was four weeks.

K. VIJAYA BHASKARA REDDY