Page 21 - Banking Finance April 2025

LEGAL UPDATE

Privacy and had challenged the layed possession, substandard con- 2009, but the flat was not ready. How-
Aadhaar Act, said the amendment at- struction, or non-compliance with ever, the builder made an illegal de-
tempts to "re-legislate" the struck- NCDRC or Real Estate Regulatory Au- mand for the balance amount, even
down Section 57. thority (Rera) orders have attempted though the flat was not ready for pos-
"This is virtually an attempt to re-leg- to seek protection under the IBC mora- session, so Chourasiya refused to pay.
islate the SC judgement which was torium. The builder sent a legal notice dated
April 8, 2010, through its lawyers, inti-
struck down on the grounds that per-
sonal data was susceptible to misuse if Flat sale to third party ille- mating Chourasiya that the agreement
was being terminated due to his fail-
exposed widely and could create a gal if agreement valid
spectre of surveillance State," he said. ure to make the payment. The builder
Subhash Ramjag Chourasiya booked a then sold the flat to Subhash Tilakdhari
However, the Ministry has clarified flat with Sai Krupa Builders. The agree- Pathak on April 12, 2011, by executing
that with the security processes pro- ment to sell was registered on August another agreement, which was regis-
posed in the amendment, no private 2, 2007. According to the agreement, tered in January 2012.
entity will be able to misuse Aadhaar the total consideration payable was Rs
data. 7,50,000. The date of possession was Chourasiya filed a complaint before the
Than District Forum on April 21, 2011,
left blank, but Chourasiya stated that
unaware that the flat had already
Apex court protects con- he was told the flat would be ready been sold to a third party. He pointed
within 18 months, with a further grace
sumers from IBC misuse by out that due to the delay in delivery,
period of three months.
realtors Chourasiya claimed he paid Rs 6 lakh he had to hire accommodation on a
Leave and Licence basis and claimed
The recent Supreme Court order say- through cheques and Rs 45,000 in reimbursement of the amount he had
ing interim moratorium in the Insol- cash. The builder admitted receiving incurred for rental accommodation. He
vency and Bankruptcy Code (IBC) does the cheque payments but denied re- also sought a direction to the builder
not shield a company or an individual ceiving any cash payment. The balance to either give him possession of the
from paying regulatory dues has come amount was payable at the time of flat or provide permanent alternative
as a blow to unscrupulous real estate possession. accommodation. Additionally, he ap-
developers, businesses, and personal
Subhash Ramjag Chourasiya booked a plied for an injunction restraining the
guarantors using the Code to evade
flat with Sai Krupa Builders. The agree- builder from creating a third-party in-
such payments, according to experts.
ment to sell was registered on August terest in the flat. This complaint was
The top court's order was in connec- 2, 2007. According to the agreement, withdrawn as it was beyond the
tion with the penalties and execution the total consideration payable was Rs Forum's pecuniary jurisdiction and was
imposed on the proprietor of East and 7,50,000. The date of possession was subsequently filed before the
West Builders, which is undergoing in- left blank, but Chourasiya stated that Maharashtra State Commission.
solvency proceedings by the National he was told the flat would be ready
Consumer Disputes Redressal Commis- within 18 months, with a further grace
sion (NCDRC). period of three months. Join

"The ruling sets a strong precedent, Chourasiya claimed he paid Rs 6 lakh
ensuring that consumer rights and through cheques and Rs 45,000 in Online Certificate
regulatory penalties remain enforce- cash. The builder admitted receiving Course on
able, even during financial distress," the cheque payments but denied re-
said Deepika Kumari, partner, King ceiving any cash payment. The balance
Stubb & Kasiva, Advocates and Attor- amount was payable at the time of Marine Insurance
neys. possession.
For details please visit
Legal experts said that many builders The assured date of delivery, including www.smartonlinecourse.co.in
facing consumer complaints for de- the grace period, expired in December

BANKING FINANCE | APRIL | 2025 | 19