Chandigarh Consumer Forum: Real estate developer gets 1 year in jail for not complying with earlier orderhttps://indianexpress.com/article/cities/chandigarh/chandigarh-consumer-forum-real-estate-developer-gets-1-year-in-jail-for-not-complying-with-earlier-order-5132426/

Chandigarh Consumer Forum: Real estate developer gets 1 year in jail for not complying with earlier order

As per the forum order, if the convict fails to deposit the penal amount of Rs 10,000, he would attract another six months of imprisonment, which would begin to run after completion of one-year imprisonment.

Chandigarh Consumer Forum: Real estate developer gets one year in jail for not complying with earlier order
The Consumer Forum of Chandigarh has held a city-based real estate developer guilty and sentenced him to one-year imprisonment.

The Consumer Forum of Chandigarh has held a city-based real estate developer guilty and sentenced him to one-year imprisonment for not complying with the earlier order pronounced in August 2017. The forum slapped a fine of Rs 10,000 on him.

The forum held Aakash Arora, vice-president (finance) of M/s Chandigarh Overseas Pvt Ltd, guilty under Section 27 of the Consumer Protection Act and issued arrest warrants for him.

According to complainant Simmi Batra, a Mohali resident, she had applied for a unit in Industrial Knowledge (Fashion Technology Park), Sector 90, Mohali, to Chandigarh Overseas Private Limited on August 15, 2006. She was allotted a unit measuring 125 sq. ft., a design studio in the Industrial Zone of Industrial Knowledge (Fashion Technology) Park, Sector 90, Mohali, by Aakash Arora, who was the vice-president of the firm, in December 2006 for Rs 5 lakh.

The complainant paid Rs 1.75 lakh to Arora and a developer-buyer agreement was executed in December 2006 in Chandigarh. Batra stated that as per the agreement, Arora’s firm was to deliver the possession of the said unit within 30 months of the date of signing the agreement. She was told that the construction had already been started. However, she neither got the possession of the unit nor the amount of money was refunded. Following this, she moved the consumer forum.

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In August 2017, the forum had directed Arora to refund Rs 1.75 lakh at an interest of 12 per cent per annum.

However, the order was not complied with, and a notice was issued to Arora.

The forum observed that Arora, despite having knowledge of the order pronounced in the case in 2017, was not only avoiding the service of the notice but had also never showed his inclination to comply with the order.

The forum order read, “…The failure of the opposite party no. 1 in presenting himself during the proceedings of the execution application, clearly establishes the brazen defiance of the orders of this forum and we are compelled to believe that the opposite party No. 1 has no desire to comply with the order dated 08.08.2017. The legal possible measure was accordingly adopted by the Forum to procure the presence of the Opposite party No. 1, but none came forward to comply with the order…”

“…This act of the opposite party no. 1 can rightly be termed as the wilful disobedience of the orders of this Forum and thus, we declare the opposite party no. 1 guilty of noncompliance of the order dated 08.08.2017 of this Forum…”, read the order.

As per the forum order, if the convict fails to deposit the penal amount of Rs 10,000, he would attract another six months of imprisonment, which would begin to run after completion of one-year imprisonment.