BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

26^th DAY OF MARCH 2018

O R D E R

SMT. SHANTHA P.K, MEMBER

The complainant has filed this complaint U/s.12 of the Consumer Protection Act, 1986 against the Opposite Party (herein after referred as OP) with a prayer to direct OP to hand over the flat or refund amount of Rs.7,50,000/- along with interest @ 18% p.a from the respective date of payment till the date of actual payment, to pay damages of Rs.7,50,000/- for the deficiency in service, mental agony and harassment suffered by the complainant for not handing over the flat in time as promised also grant costs.

2. The brief averments made in the complaint are as under:

The complainant being attracted by the said advertisement decided to purchase a 2 BHK flat measuring 850 square feet in the proposed project known as “TGS Sweden” to be constructed on immovable land bearing old survey No.22/8, Re sy. No.47, in block 14, measuring 9 guntas out of total land measuring 4 acres, situated at Channasandra Village, Uttarahalli Hobli, Bangalore South.  The complainant has booked one falt and paid total amount of Rs.7,50,000/- by cheque for which OP has issued receipts dated 19.11.2016, 29.11.2015 and 06.12.2015.  The complainant entered into an memorandum of understanding with OP on 29.11.2015 and the plot was allotted and confirmed to the complainant for valuable consideration of Rs.13,00,000/-.  OP has agreed to handover the possession of the plot after getting approval by concerned statutory authorities in the event the said flat will be handed over to the complainant within 24 months from the date of booking.  But till today the OP has not handed over possession.  OP has not yet started the project.  When the complainant contacted the OP they requested the complainant for further six months to give possession.  Despite several reminders the OP has not complied the demand of the complainant.  The complainant has lodged criminal complaint against OP before Madiwala Police Station.  Deficiency in service and restrictive trade practice of the OP is not only causing harassment to the complainant but also mental agony.  By virtue of the default on the part of OP the complainant is undergoing huge loss also is under tremendous mental pressure and agony.  The conduct of OP not only amounts to the deficiency in service agreed to be rendered but also restrictive trade practice by giving false assurances/promises to the complainant.  Hence the complainant approached this Forum for seeking appropriate relief for his grievance.

3. Despite publication of notice in the newspaper, OP failed to appear and was placed ex-parte.

4. The allegations made in the complaint, sworn testimony of the complainant coupled with MOU, receipts etc., goes to establish that the complainant has paid advance amount of Rs.7,50,000/- on different dates towards purchase of flat, measuring 850 square feet in the project called “TGS Sweden”.  OP despite having received huge advance amount of Rs.7,50,000/- has failed to commence the construction of the apartment within the time stipulated in the MOU or even thereafter.  Complainant having noticed that, OP is unable to commence the project, even failed to refund the said amount.  The complainant has also lodged police complaint against OP for the offence of cheating at the jurisdictional police which is under investigation.  We have no reasons to disbelieve the unchallenged testimony of the complainant which is supported by valid documents. 

5. The complainant has successfully proved that OP having collected huge advance amount of Rs.7,50,000/- has failed to commence the construction of apartment complex in terms of MOU and thereafter failed to refund the advance amount.  The said conduct of OP certainly amounts to grave deficiency of service.  The said conduct of OP must have put the complainant to great hardship, inconvenience and mental agony.  According to the information given by the complainant, no layout has been developed by OP so far.  Therefore, we feel it appropriate to order refund of advance amount paid by the complainant together with interest and compensation.  Therefore, the OP has to be directed to refund the advance amount of Rs.7,50,000/- together with interest @ 18% p.a from the date of receipt of advance amount till the date of realization.  Further OP has to be directed to pay compensation of Rs.75,000/- to the complainant for having caused inconvenience and mental agony together with litigation cost of Rs.4,000/-.

6. In the result, we proceed to pass the following:  

  O R D E R

The complaint filed by the complainant U/s.12 of the Consumer Protection Act, 1986 is allowed in part. 

OP is directed to refund a sum of Rs.7,50,000/- (Seven Lakhs Fifty Thousand only) to the complainant together with interest @ 18% p.a from the date of actual payment till the date of realization.  Further OP is directed to pay compensation of Rs.75,000/- for having caused inconvenience and mental agony to the complainant together with litigation cost of Rs.4,000/-.

OP shall comply the said order within four weeks from the date of the order.

Furnish free copy of this order to both the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 26^th day of March 2018)

MEMBER                                                              PRESIDENT

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Witnesses examined on behalf of the complainant dated 15.02.2018.

Sri.Gururaj R,

                               OP     -       Absent

MEMBER                                                               PRESIDENT

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