As a punishment for not complying with the legal provisions after handing over the residential flats to the buyers, a builder been penalised to pay Rs.12.36 lakh to a cooperative society in Borivali. He has been charged for not registering the society and failing to get an occupancy certificate as per his statutory obligations.

The , on Wednesday ordered Mahalaxmi Construction to compensate Samruddhi cooperative housing society for Rs.5.6 lakh, along with 9% interest charged since 1998, when the society had filed the complaint.

The court also ordered the builder to pay additional Rs.25, 000 for litigation cost and has asked to provide residents with all the amenities promised by the builder like playground, entrance gate along with watchman cabin and landscaped garden, within two months.

Court has allotted the builder four months period to acquire flu O>C. for the society building and if delayed they will be penalised Rs.1,000 for each day, till it is received.

In July 1989, the housing society approached the consumer court, with a complaint against builder for not providing O.C. of the building to them, despite taking money from them amounting Rs. 2.22 lakh from 15 members for registration charges. Also due to lack of registration society had to pay extra water charges. Later the society members themselves formed a society and registered the building and acquired deemed conveyance, it is learnt.