Consumer court sentences developer to 5 years in jail
Developer Ajay Govind Bhute is already in judicial custody in Yerawada jail in another case relating to alleged cheating of 20 to 25 inmates of an old age home
Jul 06, 2017
Source : TOI


PUNE: The district consumer court has sentenced a developer to three months in jail in each of the 20 execution applications filed by as many homebuyers for his failure to comply with the court's orders.

Developer Ajay Govind Bhute is already in judicial custody in Yerawada jail in another case relating to alleged cheating of 20 to 25 inmates of an old age home run by his organization in Khed Shivapur of over Rs 4 crore. On March 21 this year, additional sessions judge P Y Ladekar had rejected Bhute's bail plea in this case.


The sentences pronounced by a two-member bench of the consumer court president V P Utpat and member Kshitija Kulkarni on Wednesday, have come into force with immediate effect and are to run consecutively i.e. the total duration will stretch to 1,800 days, which is 25 days short of five years.


The bench has reserved a similar execution proceeding against his wife, Prachi, and three associates, Saiprabha Govind Menon, Sachin Mukund Jagtap and Madhur Suresh Bhosale, who are absconding. The Bhutes and Menon are associated with Kalyani Developers at Busyland building in Sadashiv Peth, while Jagtap and Bhosale are associated with Paramount Realties in Shivajinagar.


Kalyani Developers and Paramount Realties jointly floated a project involving 250 row houses of 500 sq ft each costing Rs 6 lakh per row house at Warwadi in Khed Shivapur in 2013-14. They collected part considerations running into lakhs of rupees from prospective buyers, but the row house project never took off nor did they return the money to the buyers.


In June 2014, the affected buyers lodged an FIR with the Vishrambaug police alleging cheating and criminal breach of trust by the developer. The police then arrested Bhute, Menon, Jagtap and Bhosale — all of whom were later granted bail by a local court. In a parallel process, the affected buyers filed separate complaints against these four men and Prachi, who owned the land where the project was to come up.


The court disposed of 20 of these complaints by way of orders which were passed between 2015 and 2016, directing the developer to refund money with interest and compensation for causing deficient service. The complainants filed their execution pleas after the developer failed to comply with these orders. Prachi, Menon, Jagtap and Bhosale are since absconding and Bhute was arrested by the Vishrambaug police in another FIR lodged in 2016 relating to the alleged Rs 4 crore cheating of the Shanti Homes old age inmates' case.




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