Bajwa Developers fined for taking money against plot sans approval

Kulwinder Sangha

Mohali, June 7

The District Consumer Disputes Redressal Forum here has directed Bajwa Developers Ltd to refund Rs 14,66,000 to a Chandigarh resident, along with interest thereon at 18 per cent per annum, and pay Rs 50,000 to him for mental agony, harassment and litigation costs. 

Jagdish Singh Johal told the forum that he had approached Bajwa Developers (OP) for purchasing a residential plot and was asked to buy it in Sunny Enclave, Sector 123, Jandpur. The complainant visited the site and saw only a large chunk of land, but was informed that the work was about to commence and possession would be handed over by December 2012. He agreed to purchase the plot and paid Rs 4,90,000, including the booking amount of Rs 50,000. An agreement was executed and a 105 sq yd plot was allotted. The total cost of the plot was Rs 19,52,000. 

The OP informed him that it had the necessary permission and approval for the land. 

Till September 2012, the complainant had paid Rs 14,66,000. The OP kept extending the date of registration of the plot. The complainant visited the site many times but found no work done. He later came to know that no permissions and approvals were in the name of the OP at the time of executing the agreement and receiving payment from the complainant. The complainant then sought refund of the amount. However, he received two letters in 2015 asking him to deposit the instalment failing which the plot would be cancelled.

The OP, however, stated that the plot was cancelled due to non-payment. The complainant had booked the plot with complete knowledge that the approvals were yet to be taken. On the complainant’s request, the agreement date was extended a number of times. As per the agreement, the amount was to be forfeited if the purchaser failed to deposit the agreed amount. The OP denied the complainant’s averments.

The forum said the complainant had booked the plot in 2012 and executed the agreement to sell. Out of the total consideration of Rs 19,53,000, the complainant paid Rs 14,66,000. As per the agreement, the final instalment was to be paid in August 2012 after which the OP was to hand over possession of the plot. However, since the OP did not have the necessary sanctions and approvals in its favour, it could not show the development of the site till August 2012 and, therefore, gave extensions in making the payment of the remaining final instalment till July 2015. This act of the OP was an act of taking benefit of its own wrong and that amounted to indulging in unfair trade practice as the complainant had been deprived of the use of his deposited amount.

The forum said the OP had indulged in unfair trade practice by collecting money from the complainant without having proper sanctions in its favour and retaining the same till date despite having received a request for refund. The act of the OP in withholding Rs14,66,000 had caused financial loss and mental agony to the complainant.