Tuesday, 5 May 2015

BUILDERS WERE FOUND GUILTY BY CONSUMER COURTS

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  BUILDERS WERE FOUND GUILTY BY CONSUMER COURTS

Now-a-days with the growth in technology, consumer is increasing his awareness about his rights and remedies. Cited below are few case Laws  held by various Consumer courts:

= One Sri. MM Radha Krishna Murthy had paid Rs.2,00,000/- to Megacity (Bangalore) Developers and Builders for a site in Vajragiri Township.  Since he has taken a loan for building a house in another site, said Sri Radha Krishna Murthy approached the Builders and requested them for refund of the money, but the Builders refused to do so. Sri Radha Krishna Murthy approached the Additional District Consumer Forum for redress of his grievance, and the Hon’ble Dist. Consumer Forum has found the Builder guilty and ordered for immediate refund of the money.  

= In another case, wherein Sri. SR Dinesh Reddy had paid Rs.5,00,000/- to M/s. Kapoor Constructions Ltd., in Malleswaram way back about four years ago, for booking a plot/house at Attur layout, Bangalore. Subsequently, he withdrew from the project and requested the said Construction Company for refund of his advance money paid by him, for which the said Construction Company refused to do so, since Mr. Dinesh Reddy volunteered himself to walk out of the project.  While deciding his case on merits, the Hon’ble District Consumer Forum held the Construction Company guilty of deficiency in service and ordered for refund of the entire advance money paid by Sri Dinesh Reddy. 

= In another interesting case, Mr. B.R. Kulkarni, had entered into an agreement with M/s. First Realty located in HMT layout, for purchase of a residential flat in Mayflower Heights in BTM layout. In this connection, Mr. Kulkarni even paid a sum of Rs.4,00,000/- to the said Realtor firm; in turn the said Realtor firm gave him two options:
- One flat on the 1st floor of the Mayflower Geetanjali to be built by its sister concern M/s. First Foundation, at 7th block, Jayanagar; and
- Secondly, another flat on the third floor in the project to be constructed at Begur Hobli, Bangalore South Taluk. 

Accordingly,  Sri. Kulkarni entered into a fresh agreement in respect of the first option i.e., flat at 7th block, Jayanagar, Bangalore. However, later on, said Realtors informed Sri. Kulkarni through their letter that a new project at BTM layout would be ready for occupation by December and the same would be allotted to him. However, when Sri. Kulkarni visited the site, it was found that there was no substantial development in the project, as such, Sri Kulkarni did not make any further payments.

On his approaching the District Consumer Court, it was held by the Hon’ble Consumer Court that the Realtors M/s. First Realty failed to complete any of the projects it has promised and held they are guilty for deficiency of service. The Consumer Court ordered for refund of the entire amount of Rs.4,00,000/- with interest at 24% p.a., and also awarded Rs.2,00,000/- as compensation for deficiency in service, besides awarding Rs.5,000/- towards costs of the petition.  







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