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LATEST NEWS UPDATES | Builders can be arrested for not delivering: National Consumer Commission -Utkarsh Anand

Builders can be arrested for not delivering: National Consumer Commission -Utkarsh Anand

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published Published on Oct 13, 2016   modified Modified on Oct 13, 2016
-The Indian Express

The NCC held that it is for the presiding member of the consumer forum to choose either of the methods to ensure its orders are not breached.

New Delhi: IN A stern message to all builders, the National Consumer Commission (NCC) has held that officials of real estate firms can be arrested for failing to hand over flats or make refunds on time.

Last week, the Commission bench, presided over by Dr B C Gupta, underscored this point when it paved the way for the arrest of the director and general manager of Nitishree Infrastructure Ltd, which failed to hand over an apartment to a buyer on time, and also failed to comply with the order to refund the money to the buyer.

The bench cited Sections 25 and 27 of the Consumer Protection Act, which empower a district consumer forum, a state consumer commission as well as the NCC to either order for attachment of properties of defaulters, or exercise its power as a judicial magistrate to seek their arrest. A person can be jailed for up to three years by a consumer forum under Section 27 for failing to comply with its orders.

The NCC held that it is for the presiding member of the consumer forum to choose either of the methods to ensure its orders are not breached. It also held that that a defaulter cannot question the nature of the order made under these provisions.

“Under the Consumer Protection Act, the compliance of the order passed by the consumer fora is made by following procedure under Section 25 or Section 27 of the said Act. It is not for the Judgment Debtor to choose which manner of execution is to be followed,” said the Commission while dismissing the appeal filed by Nitishree Infrastructure, formerly known as Shourya Towers Pvt Ltd.

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The Indian Express, 13 October, 2016, http://indianexpress.com/article/india/india-news-india/national-consumer-commission-real-estate-builders-refund-3079854/


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