Now Builders Can Be Arrested For Failing To Hand Over Flats

In a recent order by the State Commission, it has been noted that now the officials of a real estate can be arrested if they fail to hand over flats or make refunds on time. The National Consumer Disputes Redressal Commission (NCDRC) has backed the order of the state commission.

In a recent case, a warrant for arrest has been issued against the director and the general manager of the M/S. Nitishree Infrastructure Ltd by the state commission, when they did not appear in the court in spite of the proclamation published against them under Section 82 CrPC. The National Commission observed that the order passed by the consumer forum under the Consumer Protection Act had been compliance with Section 25 or Section 27 of the act.

What is Section 82 CrPC?

Section 82 CrPC proclaims for person absconding. If any Court has reason to believe that any person against whom a warrant has been issued by it has absconded or is concealing himself so that such warrant cannot be executed, such Court may publish a written proclamation requiring him to appear at a specified place and at a specified time not less than thirty days from the date of publishing such proclamation.

The complete detail of the case can be read here.

What is Section 25 or Section 27 of the Consumer Protection Act?

Section 27 of the Consumer Protection Act, 1986 says when a trader or a person against whom a complaint is made fails or omits to comply with any order made by the District Forum, the State Commission or the National Commission, as the case may be, such trader or person shall be punishable with imprisonment for a term which shall not be less than one month but which may extend to three years, or with fine which shall not be less than two thousand rupees but which may extend to ten thousand rupees, or with both.

The National Commission upheld that it is the duty of ‘judgement debtor’ to put appearance before the state commission and state their view point before them.

The State Commission dismissed the miscellaneous application by the company seeking the settlement. The commission said that the company could have challenged the order if they wanted to make an alternative offer.

To avoid any situation further, State Commission has passed order saying that now the builders can be arrested for failing to hand over flats.