Realtor gets 2 years’ jail, fine for defying order to refund Rs 2 lakh to plot buyer

Refund order, non-compliance

• Earlier, the complainant had filed a plea before the commission seeking a refund for the alleged failure of the developer to hand over possession.
• The plea was allowed on March 5, 2019, directing the society to refund Rs 2,12,500 with 12 per cent annual interest from the dates of deposit, besides paying Rs 25,000 as compensation for mental agony and harassment and Rs 5,000 towards litigation costs.
• The order had further directed that payment of the amount of compensation and litigation expenses be made within 30 days from the date of receipt of a certified copy of the order.
• The commission noted, however, that the accused did not comply with its 2019 order.
• The complainant filed another complaint before the commission under Section 72 of the Consumer Protection Act, 2019, for a direction to the accused to comply with the order.
• During the proceedings, the accused stated that the society was prepared to offer possession of an available plot subject to payment of the balance amount, along with charges for infrastructure development and external development under the agreement.
• The commission, however, noted that he neither complied with the refund order nor produced any defence evidence.

Conviction and sentencing

The commission noted that the purpose of the Consumer Protection Act will be defeated if its orders are not complied with.

“We have gone through the file and have come to the conclusion that the very purpose and object of enactment of Consumer Protection Act, 2019 will be frustrated if the orders passed by this Commission are not being complied with by the accused,” the commission noted.

It reiterated Section 72 of the Act, which provides for a penalty for non-compliance with an order.

Section 72 states that whoever fails to comply with any order made by the district commission or the state commission or the national commission, as the case may be, shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to three years or with a fine.

The fine shall not be less than 25,000 rupees, but may extend to 1 lakh rupees. The commission lamented that the order was passed way back in 2019.

“No plausible explanation or justification has been shown by the accused for not complying with the order passed way back in the year 2019. Now we are in 2026. People like the complainant are crying but the accused is not complying with the orders of this Commission,” it said.

The commission, therefore, convicted the accused under Section 72 and observed that no lenient view could be taken towards the man as the complainant was deprived of his money due to the act of the accused. It directed him to undergo rigorous imprisonment for a period of two years with a fine of Rs 1 lakh.

It further ordered that in case of default of payment of fine, the accused will further undergo rigorous imprisonment for a period of two months.

The commission directed that Rs 50,000 out of the fine be paid to the complainant, while the remaining Rs 50,000 would be credited to the state exchequer.

Takeaway

A consumer commission’s refund order is not merely advisory, as failure to comply can lead to consequences under the Consumer Protection Act.

Consumers facing grievances may contact their respective state consumer helplines (Chandigarh helpline: 1800 300 11 007) or call the National Consumer Helpline at 1915 for assistance.