Chennai: Forum asks builder to pay Rs 8.71 lakh for violation

Chennai: The District Consumer Disputes Redressal Forum, Thiruvallur, has directed a builder to pay Rs 8.71 lakh to a land owner for violating a joint venture agreement and constructing additional buildings in the flat.

In the petition, A. Karunakaran, Villivakkam submitted that he had entered into a joint venture agreement with V.Tech Builder, represented by its Managing Partner, A.C. Jothiprakash, Sithalapakkam on November 24, 2010.

As per the agreement, Karunakaran was entitled to a share of 40 per cent of constructed portion for offering his land and builder was entitled for remaining constructed area.

Karunakaran executed a General Power of Attorney on November 25, 2010 for construction of a building.  The builder assured the handing over of the flat in ten months from the date of agreement. He was entitled to retain ground floor flat including car parking but Jothiprakash delayed the construction of the flat.

After the issuing of a legal notice, on March 20, 2015 the builder handed over to the land owner an under-construction ground floor flat.  

The builder, instead of constructing only 481 sq. ft. on the second floor, had built 800 sq. ft.  He sought direction to the builder to pay a compensation of Rs 18 lakh for deficiency of service, violation of the agreement, construction of excess area and causing him mental agony. The builder failed to appear before the Forum.

The bench comprising President S. Pandian and member S. Sujatha directed the builder to pay Rs 8.71 lakh to the petitioner for rectifying the defects in his incomplete flat, towards the cost of excess construction in the second floor and compensation for causing mental agony and hardship due to the deficiency of service.