NCDRC imposes penalty of Rs 5L on Emaar MGF

The apex consumer commission has imposed a penalty of Rs five lakh on Emaar MGF Land Ltd while dismissing its appeal filed against a state fora's order which had directed it to pay over Rs 66 lakh to a man, who had booked a plot with it in 2007 but was yet to get possession.
National Consumer Disputes Redressal Commission (NCDRC), presided by Justice V B Gupta, put the cost on the building firm while dismissing its appeal filed against Chandigarh State Consumer Disputes Redressal Commission.
In its order earlier, the state commission had asked the firm to pay Rs 66,23,090 to Chandigarh resident Krishan Chander Chandna.

The firm, however, had approached NCDRC against state commission's order, but the apex consumer fora dismissed it, saying it was an "unscrupulous act" which "should be dealt with heavy hands".
"This act of the appellants (firm), even after collecting total amount of Rs 67,50,590 from respondent (Chandna)... Not confirming till date any firm date of handing over of the possession of plot, amounts to a 'deceptive practice' which falls within the meaning of 'unfair trade practice'...," the commission said.
The commission said the firm should have given a clear date of handing over of the possession at the time of taking the booking amount itself.

It said the builders "wants to have the cake and eat it too" as admittedly they had received entire cost of plot.

"Such type of unscrupulous act on part of appellants/ builders should be dealt with heavy hand who after grabbing the hard earned money from the purchasers, enjoy and utilize their money but do not hand over the possession on one pretext or the other," it said.
It also said that no leniency should be shown to such type of litigants who, in order to cover up their own fault and negligence, go on filing meritless appeals in different foras.

"Unscrupulous builders like appellants who after taking entire cost of plot, do not perform their part of obligation, should not be spared. A strong message is required to be sent to such type of builders that this Commission is not helpless in such type of matters," it said.
"...Present appeal stand dismissed with punitive damages of Rs 5,00,000, it said, adding that out of this amount, Rs 2.5 lakh will be paid to Chandna and the remaining Rs 2.5 lakh will be deposited in the NCDRC.