Builder-consumer relations to sour over VAT war

He said the developers were fighting against the state government on behalf of citizens as they had to bear the brunt. “The developers will look to recover the money from customer as they cannot pay tax from their pocket. This will give rise to problems between the developer and customer,” Jain said.

Some developers will pay the amount from the maintenance deposit of the customer in their possession which will provoke the customer to take on the developer,he said adding in cases where the developer has no deposits of customers to pay for then they will file a legal suit against the customer.

Addressing a press meet,newly appointed Pune guardian minister Sachin Ahir when asked on the VAT issue said that he was aware of the concerns and said he would get it clarified. “We would come out with clear instructions soon and the state government will make sure that citizens do not suffer,’’ he said.

He said that developers will have to do the needful and they cannot pass the responsibility to the consumer who is already residing in the flat after completing all payments. “Bombay High Court’s order that the developers should approach the state government shows they have to make alternate provisions for the same,’’ he said,adding that affordable housing projects will not be affected under the VAT issue.

Meanwhile,consumer activists have urged customers not to give in to the pressure tactics of the developer.

“The court has directed the developers to pay the tax and not the customer. The customer should not accept the demand of developers and pay the taxes,” said activist Vivek Velankar adding that the customers should get the conveyance deed and other necessary procedure clear from the developer.