November 6: In an out of the ordinary conviction, the Maharashtra State Consumer Disputes Redressal Forum today convicted a city builder, Jagdish Rane, to a three-year jail term, under Section 27 of the Consumer Protection Act. So far, the punishment has not exceeded a period of six months to one year.

Jagdish Rane has been behind bars at the Arthur Road jail for around a month now for not allotting residential flats in Dahisar to their rightful owners.Twenty three-odd residents paid for the flats constructed by Rane. But the project remained incomplete and the residents could not get possession, following which, their representatives then filed a complaint against the builder in the State Consumer Forum. The state forum ordered Rane to allot the flats immediately, which he rejected. He went in appeal in the National Consumer Forum, stating that the punishment of three years was uncalled for. Since his plea was disregarded, he challenged the decision in the Supreme Court. But the apex court also did not entertain him.

As a result, the complainant-residents filed a miscellaneous application under the Consumer Protection Act asking for implementation of the earlier state forum order. Rane agreed to pay compensation to the aggrieved residents.

However, cheques issued in the names of residents started bouncing. As a result, the state forum passed severe strictures against the builder and ordered his immediate arrest.

Rane was directed to refund the price consideration paid by the complaints. The forum had further directed payment of compensation of Rs 5000 each to the 23 complainants. The total liability on the building till date is around Rs 19 lakh. Rane has contended that he is in financial distress and unable to raise the amount. Says the order: ``We are constrained to observe that he did not succeed in the National Commission or Supreme Court.

He has committed breach of the orders which is in the nature of contempt.'' The order further stated, ``Looking at the amount, we feel that the maximum sentence is warranted, especially since the cheques given by Rane have bounced. It seems Rane is interested in avoiding the payments.''

Meanwhile, Rane's advocate R R Salvi will move the High Court tomorrow.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.