Mumbai: HC orders developer to pay Rs 2.50 lakh for quashing FIR

In a significant order, the Bombay High Court has ordered a renowned developer to pay Rs 2.50 lakhs to an NGO for blind persons, as he failed to hand over flats to several persons at Vakola. The HC has asked the developer to make the payments within a period of six weeks if they want the FIR filed against them under charges of fraud to be quashed.

A bench of Justices Prasanna Varale and Surendra Tavade was hearing a plea filed by Kumar Urban Development Pvt. Ltd. formerly known as Kumar Builders and its promoters Lalit and Pranit Jain, booked by the Vakola police for committing fraud on several persons.

As per the FIR filed in 2011, a resident from Kalina had lodged the complaint alleging that he paid Rs 1.59 crores to the developers for a plush flat in Santacruz in one of their projects. The plaint stated that despite making full payment, the developer didn't hand over the flats to him as promised.

The complainant further highlighted that he wasn't the lone person to be cheated as around 12 others too were given this promise but their flats weren't handed over. He claimed that around Rs 22 crore was taken by the developers.

The developers through their counsel Dr Abhinav Chandrachud highlighted that though after a delay they did hand over the flats. He pointed out that his clients also granted discounts to all the persons, who purchased flats in their building.

The counsel further said that the requisite occupation certificates have been given to 18 of the 20 customers of the building and that the remaining two would be given within a period of three months.

Chandrachud further relied upon the affidavits filed by the main complainant and other residents of the building who have given a "no objection" to quashing of the FIR.

However, prosecutor Jayesh Yagnik pointed out, "The petitioners (Lalit and Pranit) have collected large sum amount by giving an assurance to deliver property flats and though as per the terms between the parties themselves, they ought to have delivered the possession of the property to the purchasers within the stipulated period."

"They initially denied maintaining their promise and subsequently, after a long time completed the promise," he added.

Taking note of the submissions, the bench said that there is "some merit" in his contention, "But the fact of the matter is, the complainant and as many as 15 other flat owners have

received the OC and the property is delivered to them and the affidavits of those flat purchasers are filed in this Court, in our opinion, no fruitful purpose would be served by continuing the subject FIR and subsequent proceedings," the bench said.

"However, we also find it would be appropriate to saddle them (Lalit and Pranit) each with the cost of Rs. 2,50,000 (Rs. Two Lacs fifty thousand only), which shall be paid to National Association for the Blind, India," the bench ordered.

Published on: Tuesday, February 22, 2022, 09:52 PM IST