CONSUMER BODY ORDERS 3-YR JAIL FOR SUPERTECH MD IF NO REFUND
NEW DELHI: The national consumer commission has sent a strong message by sentencing the managing director (MD) of Supertech to three years in jail for not refunding a homebuyer after its failure to hand over possession of his house in Uttar Pradesh’s Yamuma Expressway Industrial Development Area (YIEDA) for several years.
The commission on Monday issued an arrest warrant against Supertech MD Mohit Arora, while directing that its order shall come into effect after seven days if the builder fails to deposit around ₹1.79 crore by then.
NEW DELHI: The national consumer commission has sent a strong message by sentencing the managing director (MD) of Supertech to three years in jail for not refunding a homebuyer after its failure to hand over possession of his house in Uttar Pradesh’s Yamuma Expressway Industrial Development Area (YEIDA) for several years.
The commission on Monday issued an arrest warrant against Supertech MD Mohit Arora, while directing that its order shall come into effect after seven days if the builder fails to deposit around ₹1.79 crore by then.
The money is to be paid to Brigadier (retired) Kanwal Batra and his daughter Ruhi Batra, who jointly purchased a villa in Supertech’s Upcountry project, offered by the builder in December 2013 at a cost of approximately ₹1.03 crore, which the builder promised to deliver in August 2014.
Supertech could not give possession of the villa for want of clearances, nor did it comply with the commission’s 2019 judgment to refund the money with interest despite undertakings.
The development comes days after the Supreme Court ordered the demolition of two 40-storey residential towers of Supertech’s Emerald Court project in Noida over grave violation of building norms, which, the court said, was a result of “nefarious complicity” between the Noida authority and the builder.
“We know how you (Supertech) will pay,” remarked the bench, which comprised presiding member C Vishwanath and justice Ram Surat Ram Maurya, while issuing the order which could set the benchmark for action against real estate developers that flout the consumer court orders.
The commission, in its order, said that in view of non-compliance and dishonouring of his commitment, Arora was being sentenced to three years in jail under Section 27 of the Consumer Protection Act, 1986 and a warrant of arrest was being issued. This warrant, the commission said, shall not be executed if Supertech deposits the money before it within a week.
It underlined that Supertech was “evading the implementation of the decree passed by the Commission” in April 2019, obligating the builder to refund the money to Brigadier (retired) Kanwal Batra, along with an interest of 10% per annum from the date of each payment made by the home buyer to Supertech.
Section 27 of the 1986 Act clothes a consumer forum with the powers of a judicial magistrate, having an authority to order arrest and impose a jail term up to a maximum of three years over non-compliance with its orders.
When contacted, Batra told Hindustan Times: “I booked this villa in 2013 and Supertech had promised me to hand over the possession in August 2014. Seven years on, the builder has failed to get the approvals which activated the 2019 judgment to refund my money with an interest. They did not comply with even this order despite repeated promises made. There was grave misconduct on the part of the Supertech MD which has led to this order.”
Advocate Vrinda Kapoor, who represented Batra before the commission, said: “This is a eureka moment not only for my client but also for all other similarly situated home buyers, who are made to run from pillar to post, first for their houses and then for refunds. The commission has sent out a very strong message to all the builders that you cannot bail out after making promises.”
During the proceedings on Monday, the national consumer commission took strong exception to the fact that Supertech had neither refunded the amount it had received from Batra as consideration of the house along with compensation, nor had Arora cared to show up despite the commission’s previous directive.
Mohit Arora, Supertech MD, told HT: “We have the highest respect for the commission. We will comply with the commission’s order by Thursday. Supertech will initiate the process on Wednesday and will complete compliance by depositing the money by Thursday.”
On July 20, Arora remained present before the commission after a bailable warrant was issued against him. This warrant was cancelled on his assurance that Supertech will make all payments to Batra within 60 days. While fixing September 20 as the next date of hearing, the commission then directed that Arora “shall be present on each day of hearing”.
However, Supertech moved another application in the meantime, asking for 12 months to clear the dues. This plea was rejected by the commission on September 13, pointing out that the bailable warrant issued against Arora was cancelled only on his undertaking to pay within 60 days.
When the hearing commenced on Monday, the counsel appearing for Supertech said that the amount was yet to be paid to Batra. Arora was conspicuous by his absence, annoying the commission further.
Meanwhile, Supertech also moved the Delhi high court against the order of the commission on September 13.
The hearing in this matter also came up before the high court on Monday, where Supertech’s lawyer conceded that the national consumer commission already issued an arrest warrant against Arora earlier in the day.
In view of the consumer commission’s latest order, the real estate company had to withdraw its petition from the Delhi high court.
We have the highest respect for the commission. We will comply with its order by Thursday.
MOHIT ARORA,
Supertech MD