Buyer Beware: Court Orders Refund with Interest for Undelivered Plots.
10 June 2024
Civil Revision >> Civil & Consumer Law | Consumer Complaints >> Civil & Consumer Law
A consumer court in Vatsaly Builders and Developers Pvt. Ltd. Through Its Power of Attorney Shri. Manohar Wasudeorao Patil, Maharashtra & Another v/s Kusum Dixit has directed a real estate developer to refund money paid by a customer for plots that were never delivered. The order came in a revision petition filed against the State Consumer Disputes Redressal Commission (SCDRC) which had upheld the decision of a district forum.
Background of the Case:
The complainant had booked three plots from the developer and paid a total of Rs. 18,70,800/- in installments. However, the complainant later discovered that the plots did not belong to the developer and the promised amenities were not being provided. The complainant then requested a refund, but the developer failed to deliver.
Lower Court Rulings:
The district forum ruled in favor of the complainant, directing the developer to refund the entire amount with 15% interest and compensation for mental agony. The SCDRC subsequently upheld this decision.
Developer's Arguments:
The developer challenged the order, arguing that they were always willing to refund the money as per the agreement. They further contended that the consumer forum lacked jurisdiction as the dispute involved open plots, not housing units. Additionally, they argued that an ongoing land dispute before the High Court had divested the consumer forum of its authority.
Complainant's Response:
The complainant countered that the developer's own admission of being ready to refund the money demonstrated a clear case of deficiency in service. They also argued that the SCDRC's order was justified based on established legal precedents.
Conclusion:
The court partially allowed the revision petition. While acknowledging the developer's willingness to refund, the court found them to be in breach of service for failing to deliver the promised plots and amenities. The court ordered the developer to refund the entire amount of Rs. 18,70,800/- with interest, but at a reduced rate of 9% per annum from the respective deposit dates (instead of the 15% awarded earlier). The developer was also directed to pay additional litigation costs to the complainant.