Two real estate firms directed to refund buyers

The NRIs who knocked the doors of the Commission for justice are Sandeep Singh and Bhavandeep Singh,residents of Kuala Lumpur in Malaysia. In their complaint,they stated that they had applied for a flat measuring 1,700 square feet at the Prideasia project,and paid Rs 5.90 lakh as the booking amount.

The NRIs deposited a total amount of Rs 33.53 lakh with the company towards the price of the flat. According to the agreement signed in October 2006,the construction of the residential units was to be completed within 36 months. But when the NRIs visited the site in February 2010,they found that even the foundations for the units had not been laid. Aggrieved,they sought refund of their money. When this was not done,they approached the Consumer Commission.

In its reply,the company stated that the construction was delayed due to reasons beyond their control,as it had got entangled in some court cases.

After considering the case,the Commission dismissed the claim of the company that the delay was caused by reasons beyond its control. The Commission noted that without first confirming the clear title of the entire land over which the project was to be developed,Parsvnath Developers started booking and allotting the flats to prospective buyers at huge amounts.

President of the Commission Justice Sham Sunder and Members Neena Sandhu and Jagroop Singh Mahal directed the company and its partner Chandigarh Housing Board to jointly refund Rs 33.53 lakh to the NRIs along with interest at the SBI term deposit rate as applicable on the date of refund,with effect from the respective dates of deposits.

The Commission also directed the company to pay compensation at the rate of Rs 10 per square foot of the super area of the unit per month,with effect from October 2009 (the last date for completion of the project),and litigation costs of Rs 5000.

In another case,the Commission directed Taneja Developers and Infrastructure Ltd (TDI) to refund Rs 6.87 lakh to a Mohali-based couple along with interest at the rate of 9 per cent per annum from the date of deposit. TDI has also been directed to pay Rs 25,000 to the couple for the harassment caused to them,and Rs 5,000 as cost of litigation.

In their complaint,Dr Navjot Singh and his wife Dr Maninder Kaur stated that in March 2008,they applied to the company for a plot measuring 250 square yards at its upcoming project in TDI City,Mohali. The couple deposited Rs 6.87 lakh as 25 per cent price of the plot,and the allotment was made in September 2008.

The couple later found that the company had not yet acquired the land on which the plot was allotted. They told the court that in response to the queries made by them,the company arbitrarily cancelled the registration of the plot and did not refund their deposit either. Aggrieved,the couple filed a case in the UT Consumer Disputes Redressal Forum.

In its reply,the company stated that it had purchased the land for its project.

The company claimed that the allotment was cancelled since the couple failed to pay the balance outstanding amount despite reminders.

After considering the case,the Forum observed that TDI had not undertaken development of roads,sewerage etc,nor had permission been obtained from the government for change of land use. The Forum concluded that it was not obligatory on part of the complainants to deposit any further amount in the absence of development at the site,and gave its order in favour of the couple.

TDI challenged the Forum’s order in the Consumer Commission.

The Commission observed in its order that if the company had taken the requisite permissions before issuing the advertisement and undertaken development activities at the site,it could have forfeited the booking amount in case of non-deposit of further instalments.

But in the present case,TDI’s action in cancelling the allotment and forfeiting the 25 per cent booking amount was completely illegal,said the Commission.

In this light,the Commission upheld the order given by the Forum and dismissed the appeal filed by the real estate company with costs of Rs 5,000.