3 weeks ago
Partners of Sterling Constructions Get 3-Year Jail Over Flat Possession
Two people who run a building company were told by a special court to go to jail for three years.
The company, Sterling Constructions, sold apartments to people.
Buyers paid all the money for their homes, but the builders did not finish the buildings or give them the keys.
A man named Avinash Butala booked his flat in 2006, and the building was still not finished in 2013.
Later, in 2017, the consumer court told the builders to give him the flat and pay extra money as interest.
The builders did not follow that order, so the court decided to take strict action.
The court, called the Maharashtra State Consumer Commission, said the builders were guilty of bad service.
It decided to send the two partners to jail for three years.
The jail time is paused for 30 days so the builders can appeal.
The court did not believe the builders' excuses about price changes and rules.
Maharashtra State Consumer Commission sentenced two partners of Sterling Constructions to three years' imprisonment for non-compliance with its flat possession order.
The firm was held guilty of deficiency in service in three complaints brought by flat purchasers.
The commission observed that the developers took the full consideration amount but did not complete construction or hand over possession of the flat.
The sentence has been suspended for the 30-day appeal period after the developers' lawyers sought a stay.
In one case, Avinash Butala booked a flat in Sterling Apartments in Kurla in 2006; the building remained incomplete till 2013, and in 2017 the developer was directed to deliver the flat and pay interest.
- Who
- Two partners of Sterling Constructions, pursued by flat purchaser Avinash Butala through advocate Ajay Pawar.
- What
- The partners were sentenced to three years' imprisonment for non-compliance with a consumer commission order to hand over flat possession.
- Where
- Mumbai, Maharashtra, India (Sterling Apartments, Kurla).
- When
- Announced August 7, 2026; the flat was booked in 2006, the building remained incomplete till 2013, and the delivery order was passed in 2017.
- Why
- The commission held that the developers received full payment but failed to complete construction and hand over possession, amounting to deficiency in service.
Complainants and Commission
Sterling Constructions
Cause of possession delay
Complainants and Commission
The commission found the developers collected full payment and were 'not bothered to complete construction,' rejecting their explanations as an untenable defence and holding them guilty of deficiency in service.
Sterling Constructions
The developers argued that possession was delayed by regulatory changes and price escalation that complainants refused to accept, and by occupants refusing to vacate part of the plot due to a dispute, which delayed approval for the proposed building project.
Key facts
- Conviction
- Three years' imprisonment
- Developer
- Sterling Constructions
- Grounds
- Non-compliance with commission order; deficiency in service
- Number of complaints
- 3
- Flat location
- Sterling Apartments, Kurla, Mumbai
- Flat booked
- 2006 (complainant Avinash Butala)
- 2017 order
- Deliver flat and pay interest
- Appeal period
- Sentence suspended for 30 days
Quotes
Maharashtra State Consumer Commission
Official body overseeing consumer protection in Maharashtra
“The accused, after obtaining the full consideration amount of the flat, were not bothered to complete the construction and failed to hand over possession of the flat.”
freepressjournal.in
Sources
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