Forum penalises developers’ firm

Kulwinder Sangha

Mohali, November 13

The District Consumer Disputes Redressal Forum here has ordered a developers’ company to refund Rs 3,40,000 to a Bassi Pathana resident, along with interest thereon at 12 per cent per annum, and pay Rs 50,000 to her for mental agony, harassment and litigation costs.

Complainant Sneh Latta said she entered into an agreement with Bajwa Developers Ltd, Kharar, for the purchase of a flat in Sector 74-A, Mohali, for Rs 12 lakh. She paid Rs 30,000 as transfer fee and Rs 1,87,500 against the sale consideration. She also deposited Rs 1,62,500. The “biana” was executed on May 13, 2011.

Bajwa Developers, she alleged, made the promise to build the project in 18 months. However, no construction activity was started and no infrastructure development had been made at the project site. The company failed to refund the deposited money.

However, the company pleaded that the forum had no jurisdiction in the matter as the transaction was purely a plot sale agreement. The complainant agreed to pay the instalments due within the stipulated period, which she failed to do. There was no consumer service provider relationship between the complainant and the company. The company denied any deficiency in service.

The forum, with Madhu P Singh as president and Amrinder Singh Sidhu and RK Aulakh as members, said the complainant claimed to have purchased the flat from a dealer, Munish Kumar, and paid him Rs 30,000 as transfer fee. However, she had neither impleaded him as a necessary party nor produced a receipt to show that payment.

The forum said the complainant had made the payment of “biana” plus one instalment due on September 12, 2011. The rest of the payment was to be made by her from January 12, 2012, to November 12, 2012, in instalments. As per the agreement, once the buyer makes all payments as per the schedule, the company was to get the sale deed registered within 10 days thereafter. The plea of the company that no time frame for giving possession was contrary to the factual position, as per the agreement to sell.

The complainant, the forum further said, had not paid the balance instalments starting from September 12, 2011, till November 11, 2012, for the reasons that the company had failed to show any development at the site and also failed to provide any sanctioned plan, approvals, etc, as till date no construction activity had been started. Thus, Bajwa Builders had indulged in unfair trade practice by collecting the amount from the complainant and not making any development at the site or raising any construction for the flat in question. The company had nothing in hand even to give the possession of the flat to the complainant in future.

The forum said a builder/developer collecting money from the consumers without having proper and necessary sanctions in its favour from the competent authorities has indulged in unfair trade practice. Further, on the day of signing of the buyer’s agreement, the company was not even the owner of land in question for which it entered into an agreement to sell. Thus, the company had collected the money from the complainant illegally and retained the same. It had indulged in unfair trade practice and deficiency in service.