Flat buyer drags Mumbai's Ekta Housing to court for selling promised flat

Mumbai-based prominent developer, Ekta Housing Private Limited will have to face criminal charges in the magistrate court for allegedly cheating a buyer and violating the Maharashtra Ownership Flat Act, 1963 (MOFA). A court of additional sessions judge in recent order provided major relief to a Bhawani Peth-based flat buyer by rejecting a revision petition of the developer seeking relief against criminal charges.

The developer Ashok Mohanani (63) and his son Vivek (36), both residents of Kalanagar in Bandra, had constructed a housing project, ‘California’, at NIBM Road, with the help of complainant Kishore Hiranand Nainani (62). Despite paying for it, he received a demand draft of the amount, after which he approached the court. Ironically, the project is being constructed on the land which was sold to the developer through Nainani, who used to work as real estate agent.

Nainani managed to issue summons to the developer early last month. However, the developer got a stay order by filing a revision petition saying that the property belonged to his wife.

In his plaint, Nainani has said that in 2007, the accused had requested him to find a suitable land near NIBM. They agreed to pay one per cent commission on the agreement value. They purchased 26,000 sq metres for Rs 37.71crore. The accused further requested Nainani to help them for selling the proposed flats and also agreed to pay him two per cent of commission.

After selling six flats, Nainani allegedly became entitled to claim Rs 13 lakh as commission. The developer was liable to pay Rs 50.71 lakh to the complainant towards the entire commission. They paid Rs 5 lakh as an advance by account payee cheque.

Since Nainani was also in need of big house, he booked a flat in the name of his wife Meena Nainani. The developer agreed to sell the flat to him at the rate of rs 3,271 per sq ft. The total consideration worked out to Rs 73.62 lakh. After subtracting the amount of commission, the complainant was allegedly liable to pay Rs 39 lakh to the developer. However, on December 3, Nainani got the letter saying he has paid nothing and that the going rate was now Rs 4,021 per sq ft.

However, this issue was settled for a while. Next, the developer printed his daughter’s wedding cards from Nainani. With this deal, the sum of Rs 12.50 lakh was due from him. The developer agreed to credit the said amount towards consideration of the amount payable by Nainani. He further kept following up the developers, requesting them to register the sale agreement in his favour, but they avoided to do so.

Again, the booking was cancelled putting Nainani in a dilemma as he had already obtained a loan of Rs 33 lakh. He said, “I am still staying in rented premises and unable to buy any flat as I spent my earnings in buying this one. The developer took disadvantage of friendly relations.”

These details proved to be sufficient grounds for the court to initiate proceedings against the developer.

Advocate Bhojwani, representing the Nainani claimed that there are prima facie evidences to show that the amount had been paid from the complainant’s account.

Judge MNM Saleem, while rejecting the developer’s claim, said, “ The developer paid a demand draft of Rs 44.66 lakh to Nainani as a refund. This prima facie shows substance in the complaint. Selling of the flat to third person also shows dishonest intention. After the receipt of 20 per cent sale price of the flat, it was incumbent on the part of developer to execute an agreement. There appears violation of the provision of Section 4 of MOFA.”

Advocate SK Jain, representing developer Mohanani, said that they have now filed an appeal before the high court. “The matter will come up for hearing in couple of days. The sessions court ruled out our request on technical points only. The complainant has no locus standi as the flat was brought by his wife,” he said.

 Followings are another complaints on Era Landmarks India Ltd:

• Kumar Builders and Mumbai based Ekta Parksville asked to advance their possession deadlines
• NEVER TRUST EKTA PARKSVILLE HOMES PVT. LTD.

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