BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 17^TH DAY OF FEBRUARY 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the OP for the following reliefs against the OP:-

1. Direct the OP to pay a sum of Rs.3,53,000/- to the first party with interest @ 18% p.a., from the date of payment till its realization.
2. Direct the OP to pay Rs.5,00,000/- as compensation/damages with interest.
3. Award cost of the above proceedings.
4. Grant such other reliefs.

2. The case set up by the complainant in brief is as under:-

The OP is the promoters and developers of residential layouts projects in the name and style Sancity Gold 8^th Phase, situated at Chikkakurugodu village and Dalludi Village, Kasaba Hobli, Gowribidanur Taluk, Chikballapur District. The complainant impressed by the advertisement and the brochures and assurances given by the OPs become the member of the said project and the complainant has booked a site bearing No. 469 measuring 30X40 feet, formed in Sancity Gold 8^th Phase, L Block schedule property for a sale consideration of Rs.2,60,000/- and with a further sum of Rs.15,000/- each towards electricity and water connection. The complainant has paid the sital value of Rs.2,60,000/- and Rs5,000/- through cheque on 11.04.2017. After receiving the entire amount the OP has executed a MOU on 17.05.2017.

3.       As per the terms of the said MOU the OP has agreed to complete the sale transaction by registering the sale deed in respect of the said site within 24 months.

4.       There is an obligation on the OP to complete the project within the stipulated time i.e., forming residential layout after obtaining the sanction of layout plan from the town planning authority providing all civic amenities besides other facilities as proclaimed in the advertisement and brochures. But the OP has utterly failed to complete the project work even after several years.

5.       The OP has sent a letter on 01.11.2019, the OP has called upon the complainant to pay the additional amount of Rs.93,000/-  being water and electricity charges for a sum of Rs.60,000/- and additional registration cost of Rs.15,000/- and Rs.18,000/- being GST.  The complainant has remitted the amount of Rs.93,000/-. Despite lapse of several months the OP did not execute the sale deed and he has not shown any inclination to execute the sale deed.  Whenever the complainant insisted the OP to honour the commitment the only reply was the project is being ready and will be intimated soon till date. When the OP having received the entire money totaling Rs.3,53,000/- on the guise of registering the site utilize the same for their commercial purpose and till date no response from them either in respect of development or for registration of the property. The OP has committed default in respect of terms and conditions of MOU. Finally the complainant has decided to issue legal notice and issued the same on 29.08.2023 and the same was served on the OP. Inspite of service of the notice, the OP has neither complied with the demands in the notice nor responded. Hence the OP has committed deficiency of service and unfair trade practice. Hence this complaint is filed.

6.       In response to the notice, OP has not appeared before this Commission. Hence OP placed exparte.

7.       The complainant has filed his affidavit evidence and relies on 6 documents. 

8.       Heard the arguments of the complainant. Perused the documents and citations. 

9.       The following points arise for our consideration as are:-

1. Whether the complainant proves deficiency of service on the part of OP?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

10.   Our answers to the above points are as under:

Point No.1:  Affirmative

Point No.2: Affirmative in part

Point No.3: As per final orders

REASONS

11.     Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence and documents. Inspite of issue of notice, OPs remained absent. Hence OPs neither challenged the allegations made in the complaint and also documents and they remained unchallenged.

12.     The complainant has filed affidavit evidence and reiterated all the allegations made in the complaint.

13.     In order to prove his contention the complainant has produced the Ex.C1 the MOU, Ex.C2 is the copies of receipts, Ex.C3 is the letter dated 01.11.2019, Ex.C4 is the receipt, Ex.C5 is the copy of the legal notice and RPAD receipt and Ex.C6 is the acknowledgement.

14.     the complainant has become the member of the OP company and agreed to purchase a site bearing No.469 measuring 30X40 feet in the layout called Sancity Gold 8^th Phase L Block, situated at Chikkakurugodu village, Chikkaballapur District, and agreed to purchase the said site for a total consideration of Rs.2,60,000/-. The complainant has paid the entire sale consideration amount along with water and electricity charges and registration, totally amounting to Rs.3,60,000/- as per Ex.C2 and C4 and entered into MOU with the OP on 17.05.2017 as per Ex.C1.

15.     When the OP has failed to complete the project, the complainant got issued legal notice on 29.08.2023 as per Ex.C5. Inspite of service of notice the OP neither responded nor honored the demands made by the complainant.

16.     It is clear from the above documents and evidence of the complainant that the complainant has booked the site after paying the entire amount in the year 2017.  The complainant has also made the subsequent payment of Rs.93,000/- and Rs.60,000/- towards water and electricity and registration charges as per the demand made by the OP with a fond hope that he may get a residential site and he may construct the residential house and stay with his family members peacefully. The OP has neither completed the project nor allotted and registered any site in favour of the complainant.

17.     It is the obligation on the part of the OP to get all the legal opinion in respect of the lands and also all the approvals from the concerned government authorities before forming the layout. The OP has neither obtained any approval from the competent authorities nor has cleared the litigations relating to the lands involved in the project has collected the money from the innocent purchasers like the complainant. The OP has played fraud on the complainant and other innocent purchasers by collecting large amount of money alleging that he will form the layout and allot and register sites in their favour even though he was not at all formed the layout.  The conduct of the OP clearly discloses that he has committed deficiency of service and unfair practice and played fraud on the complainant by collecting entire sale consideration amount with registration and water and electricity charges from the complainant. Hence complainant is entitled for the relief. 

18.     The complainant counsel has relied on the decision of the Hon’ble NCDRC in first Appeal No.155/2006 dated 09.07.2007 and as per the decision of the Hon’ble NCDRC, the Hon’ble NCDRC  the Commission has to compensate the consumer for the delay caused by the OP in delivering the possession. The complainant has claimed the refund of the amount with interest @ 18% p.a., and also compensation of Rs.5,00,000/-. The interest and the compensation claimed by the complainant is on the higher side hence we feel it is necessary to award interest @ 12% p.a., and Rs.1,00,000/- towards compensation to meet the ends of justice. Therefore, we answer point No.1 in affirmative and point No.2 partly in affirmative.

19.     Point No.3:- In view of the discussion referred above the complaint is liable to be allowed in part.  Hence we proceed to pass the following;

O R D E R

1. The complaint is allowed in part.
2. OP is directed to refund of the amount of Rs.3,53,000/- with interest at 12% p.a., from the date of respective payment till realization.
3. OP is further directed to pay Rs.1,00,000/- towards compensation along with litigation cost of Rs.10,000/- to the complainant.
4. The OP shall comply this order within 90 days from this date, failing which the OP shall pay interest at 14% p.a. after expiry of 90 days on Rs.3,53,000/- till final payment.
5. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 17^TH day of FEBRUARY, 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL