Friday, Oct 24, 2014

Estate builder fined for not refunding earnest amount

Tehlan submitted that he had applied to the scheme undertaken by Emaar MGF, under the name and style of ‘Mohali Hills’. Tehlan submitted that he had applied to the scheme undertaken by Emaar MGF, under the name and style of ‘Mohali Hills’.
Express News Service | Chandigarh | Posted: May 3, 2014 3:17 am

The State Consumer Disputes Redressal Commission has directed Emaar MGF Land Private Ltd to refund Rs 5 lakh along with an interest of 9% per annum to a resident of Punjab who had booked a plot each in his name. The commission has also asked Emaar MGF to pay a compensation of Rs 40,000 for causing physical harassment and mental agony to the complainant, Sanjay Tehlan.

Tehlan submitted that he had applied to the scheme undertaken by Emaar MGF, under the name and style of ‘Mohali Hills’. Emaar MGF registered the name of the complainant, for provisional allotment letter in respect of the plot in Mohali Hills, Sector 109. Tehlan had deposited Rs 5 lakh as an earnest amount against the total sale price of Rs 1 crore. While, the Plot Buyer’s agreement between the parties was executed on March 31,2013.

It was stated that after reading in a newspaper that the opposite party has been penalised, he asked the builder to refund the deposited amount within 30 days after depositing the booking amount but the same was refused. After which, a legal notice was also issued to the opposite party but to no avail. Hence, a complaint was filed.

However, the opposite party alleged that the complainant was informed that in case, he chose to seek cancellation of flat, then the earnest money is liable to forfeited. It was further averred that as the complainants never adhered to the agreed terms and conditions of the advance registration application form, their allotment is liable to be cancelled and their money is liable to be forfeited.

Since the opposite party failed to prove any reason for not being able to refund the earnest amount, the forum allowed the complaint and directed Emaar MGF to refund Rs 5 lakh besides payment of Rs 40,000 on account of compensation and litigation cost.

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