District Consumer Commission, Mumbai Suburban · Judgment · 15.03.2023
Failure to convey the land is a deficiency in service
The Mumbai Suburban consumer commission held a developer guilty of deficiency in service and unfair trade practice for failing for decades to form the society and convey the land, and directed conveyance and handover of original documents within three months, with compensation and costs.
Key points
- Under MOFA, the promoter must form the society and execute conveyance; failure to do so is a deficiency in service.
- The developers were directed to convey the land and hand over original documents within three months.
- Further costs of registration and conveyance were to be shared 70:30 between developers and the society; compensation of ₹75,000 and costs of ₹50,000 were awarded, with ₹100 per day for delay.
The facts
The members of Sterling Centre, a commercial premises building at Mogra, Andheri (East), had occupied their offices since 1990. The developers collected society registration and conveyance charges from each purchaser (₹1,761 each, ₹33,459 in all from 19 members) but never formed the society or conveyed the land. The members registered their own co-operative society in 1991 and, after legal notices in 2012 went unanswered, filed a consumer complaint in 2013 seeking conveyance, original documents and compensation.
What the Commission held
The Commission found, on the basis of the sale agreements, that the developers had received the charges and were bound by MOFA and the agreements to complete their statutory obligations. A pending civil suit from 1985 contained no order preventing them from doing so. Holding the developers jointly and severally guilty of deficiency in service and unfair trade practice, it directed them to convey the land described in the agreement and to hand over the original documents within three months, ordered that any further registration or conveyance expenses be shared 70:30 by the developers and the society, and awarded ₹75,000 compensation and ₹50,000 costs, with ₹100 per day for any delay.
Why it matters
Societies whose developers have not conveyed the land can pursue a consumer complaint, as here, or apply for deemed conveyance under Section 11 of MOFA. The two routes serve different purposes: a consumer complaint can bring compensation and directions to the developer, while deemed conveyance does not need the developer’s co-operation. The choice depends on the documents available and how long the delay has been.
Twenty-page judgment in English. This page summarises the decision for general information; it is not a substitute for the full text and not legal advice. Check whether the decision has since been appealed, modified or overruled.
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