Ex-RBI employee earns ‘rare’ interest in flat possession case

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Maharashtra: Ex-RBI employee wins ‘rare’ interest in apartment possession case | Photo: Unsplash

The State Consumer Disputes Redressal Commission (SCDRC), Maharashtra, ordered a construction company to pay 21% interest on the booking lump sum paid by an elderly person.

The high interest rate, which is rarely granted, was granted after the elderly failed to obtain the property. Passed on July 26, the order sought to repay Rs 30.42 lakh with 21% interest per annum since 2013.

It also awarded compensation of Rs 100,000 for mental agony and Rs 50,000 for legal costs to Ganesh Gavali, a former Reserve Bank of India employee, and his wife. In 2013 Gavalis booked a flat in Mulund after M/s S Siddharth Construction Co posted an advert.

They paid Rs 15.46 lakh in April 2013 as booking amount and another Rs 15.46 lakh next month. When the construction company demanded additional Rs 2 lakh, even that was paid in cash in July of the same year. However, when the Gavalis reached out to the company to make a deal, the developer delivered but delayed its execution.

Upon visiting the site, the couple were shocked as there was no construction activity going on. After five years of waiting, they issued notices to the company and went to the commission. “Twenty-one percent interest is rare. A little explanation justifying the interest which is extraordinary would have strengthened the order,” Mumbai Chairman Grahak Panchayat and Adv Shirish Deshpande said.


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