The District Consumer Disputes Redressal Commission, Ludhiana, has directed Hero Realty Private Limited and Hero Homes to refund over ₹11.72 lakh to a Malerkotla resident after finding deficiency in service and unfair trade practice in connection with a housing project near Ludhiana.
The complaint was filed by Mukesh Gandhi, a resident of Malerkotla, regarding purchase of a flat in the residential project situated at Birmi village near Mullanpur Dakha.
The buyer said that he initially booked a 2.5 BHK apartment in 2015 after being shown a sample flat and promised premium specifications, including higher ceiling height, a modular kitchen and modern interiors. Later, following persuasion from company representatives and assurances of discounts, he opted for a larger 3 BHK flat and transferred the earlier payments towards the upgraded unit.
The complainant stated that he paid a total amount of ₹11.72 lakh in installments. However, during a site visit in December 2020, he allegedly found major differences between the promised specifications and the actual construction. He claimed the flat had lower ceiling height than promised, substandard fittings, poor finishing, cracks in plaster, lack of greenery and incomplete infrastructure in the project.
Following this, the buyer sought cancellation of the booking and demanded refund of the deposited amount along with compensation. The builder, in its reply before the commission, argued that the complainant had repeatedly defaulted on installment payments despite several reminders and demand notices. The company maintained that the allotment was cancelled in October 2018 due to non-payment of dues, as per the terms of the apartment buyer agreement.
{{/usCountry}}Following this, the buyer sought cancellation of the booking and demanded refund of the deposited amount along with compensation. The builder, in its reply before the commission, argued that the complainant had repeatedly defaulted on installment payments despite several reminders and demand notices. The company maintained that the allotment was cancelled in October 2018 due to non-payment of dues, as per the terms of the apartment buyer agreement.
{{/usCountry}}After hearing both parties and examining the documents on record, the commission observed that while the complainant had defaulted in subsequent payments, the builder had also failed to refund the deposited amount even after cancellation of the allotment.
The commission held that the continued withholding of the buyer’s money amounted to deficiency in service and unfair trade practice.
Commission president Priti Malhotra and member Mohinder Singh Brar directed the builder to refund ₹11,72,636 to the complainant along with a 6% annual interest from the date of cancellation of the apartment till realisation. The commission also ordered the company to pay ₹25,000 as compensation for mental harassment and deficiency in service and ₹10,000 towards litigation expenses.
The commission further directed that the order be complied with within 45 days, failing which the amount would carry 9% annual interest.