Consumer court issues arrest warrant against Nagpur’s Gruhlaxmi Construction

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real estate

After a city builder failed to appear before the Nagpur circuit bench of State Consumer Disputes Redressal Commission, a bailable warrant was issued against him, with directives to the cops, through the police commissioner, to arrest and produce him on June 12.

 

A division bench comprising judicial member BA Shaikh and member JD Yengal also imposed cost of Rs15,000 on Gruhlaxmi Construction and Land Developers’ proprietor Suresh Burrewar, for repeated failure to comply with its directives passed last year. His property was also directed to be seized.

 

The commission’s crackdown came while hearing complaints by Paresh Kukudkar, Milind Karmarkar and Gattu Chakravarthy, who had applied for residential units in the proposed Gruhlaxmi Towers project of Burrewar in Beltarodi region of city.

 

The three complainants entered into different agreements with the builder for booking flats. While Karmarkar paid Rs2.75 lakh, Kukudkar and Chakravarthy paid Rs4 lakh each towards first instalment in 2011.

 

As per the pact, payments were to be made in stages with the progress in construction. However, the builder failed to start construction for three years, after which the complainants, through counsel Arvind Waghmare, issued legal notice to him on October 20, 2014. When he failed to respond, they approached the forum, praying for Rs5 lakh compensation and Rs2 lakh for harassment along with Rs25,000 cash to each of them towards physical and mental harassment.

 

The forum issued two notices to the builder, but they weren’t served at its address on Central Avenue. It then permitted the complainants to publish a public notice in the newspaper. After the developer failed to respond, the forum decided to proceed ex-parte against him on December 13, 2016, and slapped cost of Rs18.30 lakh for failure to construct the flat scheme. The firm was also told to pay Rs1.10 lakh more to each of the complainants for physical and mental harassment along with litigation costs.

 

Additionally, the builder was also told to either provide flat to three complainants or refund their Rs10.75 lakh with 15% interest per annum. It was reported by TOI in its June 19 edition last year. However, Burrewar failed to comply with the court’s directives, which led to issuance of bailable warrant and orders to seize his properties.

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source: Economic times.

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