The judgement gains importance in light of the fact that the housing project in Virar involves the fate of many more flatowners than the 288 aggrieved consumers. Another batch of 131 complaints against the builder, filed by the Mumbai Grahak Panchayat, is slated for hearing next month. The Panchayat is represented by advocate Shirish Deshpande.

Incidentally, builder Jayant Paranjape was arrested by the Vile Parle police yesterday in yet another case. The Paranjape builders had earned the reputation of providing affordable `homes' to middle-class Mumbaiites. The ruling given by the consumer court clearly shows how the builder has misused flat purchasers' funds, delayed handing over of flats and in some cases given theflats on lease without informing the owners. After receiving the ruling, the Mumbai Grahak Panchayat has convened a meeting of the aggrieved consumers on August 28 to decide the future course of action.

The 288 flat purchasers have lost considerable money ranging from Rs 50,000 to Rs three lakh. They cancelled their bookings in the J P Nagar Housing Project due to Jayant Paranjape's inability to construct flats even ten years after the agreement. They alleged that Paranjape accepted around 50 to 80 per cent of the principal amount from the purchasers, without entering into any formal agreement, which is violative of the Maharashtra Ownership Flats Act (MOFA). The delay in granting possession of the flats compelled many purchasers to cancel booking. According to MOFA provisions, a builder is obliged to refund the purchaser's amount along with nine per cent interest. However, Jayant Paranjape claimed he was not obliged to do so. The Forum ruled that since Paranjape collected over 20 per cent flat cost, he isliable to pay the refund with interest.

The forum also agreed upon the panchayat's argument of ``fair and just compensation'' to the consumers, especially considering the mental agony and financial losses suffered by them. The forum has drawn a table of the compensation amount to be paid by the builder. This table takes into account the prevailing market value of the money paid by the consumers some years ago. ``If these consumers have to purchase new flats at the prevailing market price, refund of their deposits with interest will not enable them to buy new flats. And most purchasers will never be able to realise their dream homes due to the builder's wrong policies,'' says the forum.