In a further setback to the beleaguered builder Venkatesh Prabhu Moni, the State Real Estate Regulatory Authority (RERA) court has ordered the builder to pay Rs 4 crore compensation to the unit/flat owners for defective construction and failure to handover the units to the owners on time.
Goa RERA has also directed the builder to pay litigation cost of Rs 10 lakh to the 36 complainants who had purchased the units/flats in Prabhu Chambers, a building located at Angod in Mapusa.
Further, the court said that failure to pay the awarded amount to the unit holders within 30 days from the date of the order would cost the developer another 10 percent interest every month on both compensation and the litigation amount.
“It cannot be disputed that the builder had commenced the construction of the building ‘Prabhu Chambers’ in 2011 and till date he has failed to complete the project in all respects and obtain the occupancy certificate by complying with the directions of the Mapusa Municipal Council and the GRERA order dated March 17, 2022,” said Ashley Noronha, Adjudicating Officer, Goa RERA.
It may be recalled, in an earlier order, RERA had directed Prabhu Moni to pay interest on the amount paid by each of the complainant at 9.3 percent per annum, which now works out to over Rs 4 crore. Besides, the Authority had also imposed Rs 50 lakh penalty on the builder for violating previous orders passed by the RERA court.
Since the controversial builder could not fulfil the orders of the court, the case was sent to the Revenue Department for recovery under the Land and Revenue Arrears Act.
When the Revenue Department also could not keep up the commitment and give possession of the flats/units to the owners, the matter was sent to the Principle District Judge for the execution of the order of Goa RERA under section 40(2) Real Estate (regulations and development) Act, 2016.
Incidentally, the builder and his family have many cases pending in various courts of North Goa including under Sections 420 and 336 against the State for fraud and endangering human life, Section 374 against Shahajanand Investment, Section 196 against State, Section 9 Arbitration act against unit holders of Prabhu Chambers and three cases under section 138 of Negotiable Instruments Act (cheque bouncing) against A Walke and Goa Detective and Security Services.
Around two months ago, a Panaji court had convicted Prabhu Moni in a cheque bouncing case awarding him a six-month rigorous jail term. The builder was also asked to pay Rs 2.14 crore to the complainant, Sahajanand Investments.
