Consumer panel gives three-year jail to Supertech's MD

Consumer panel gives three-year jail to Supertech’s MD

NEW DELHI: Invoking a sparsely used power, the National Consumer Disputes Redressal Commission (NCDRC) has awarded a three-year jail term to the Supertech managing director for breach of undertaking given before it.

“In view of the non-compliance of the direction and dishonouring his own commitment, we sentence the MD of the company, as per powers under Section 27 of the Consumer Protection Act, for three years’ imprisonment and issue warrants of arrest,” the consumer panel directed.

As a last chance, the bench of C Viswanath and R S R Maurya said the jail term will come into effect a week from September 20th if Supertech doesn’t deposit the money. Soon after the verdict on Monday, the developer moved the Delhi high court, which refused to interfere or stay the order.

Appearing for homebuyers, advocate Vrinda Kapoor opposed the plea for a stay, highlighting the conduct of the builder. MD Mohit Arora failed to appear before the panel despite the NCDRC orders that he remain present at every hearing till money decreed by the commission to a harassed flat owner is not returned.

Earlier, Arora appeared before the commission only in response to bailable warrants issued against him in April this year in connection with failure to give possession to joint buyers of a villa in Sector 17A of the Yamuna Expressway Industrial Development Area despite a long delay. The compensation for delay was also not paid.

Arora had given a commitment that the builder would give possession of the villa within 60 days and “on this assurance”, the commission cancelled the warrant earlier.

Despite winning compensation for delay at the rate of 9% interest, Greater Noida resident, Kanwal Batra failed to either get the money or the property booked in the “Upcountry” project offered by the builder in December 2013 at a cost of approximately Rs 1.03 crore, which the builder had promised to deliver in August 2014.

Kapoor had earlier told the commission that while the developer keeps offering possession claiming the completion certificate will be issued soon, the customers have been kept waiting and not been compensated.