Mohali builder gets two-year jail for defying consumer court order

Mohali builder did not comply with a consumer court order, wherein he was directed to refund ₹14 lakh to a buyer for failure to give possession of a plot at RKM City in Sector 113

The District Consumer Disputes and Redressal Forum, Mohali, on Tuesday awarded two-year imprisonment to KJS Ahluwalia, managing director of RKM City in Sector 113, for non-compliance of its 2016 order, wherein he was directed to refund ₹14 lakh to a buyer for failure to give possession of a plot.

The consumer court said that from his behaviour, it is clear the Mohali builder did not intend to pay the amount to the complainant. (Getty Images/iStockphoto)

Virender Singh, a resident of Sector 44, Chandigarh, in his complaint stated that he booked a 200-square-yard plot at the housing project in August 2011, and paid ₹14 lakh to the builder on different occasions on the assurance that he will get the possession in 2012. After waiting for four years, he moved the forum in 2016.

The forum in its orders, dated April 20, 2016, directed the builder to refund the amount along with 12% interest from the dates of deposits till payment along with compensation of ₹50,000 within 30 days. After Ahluwalia failed to comply, a show-cause notice was issued to him.

Forum president Sanjiv Dutt Sharma said: “(Ahluwalia’s) presence was procured by sending production warrants since the accused is already in Burail Jail in some other case... He was given sufficient time to deposit the amount, but he was reluctant to do so. In this case, the accused in a statement recorded that he is not in a position to make the payment to the complainant.”

“Since the accused is very blunt and straightforward in his statement and has clearly shown his intention not to comply with the orders of this commission and pleads guilty, we feel that we are left with no other option except to punish him under Section 72 of the Act for wilful and intentional disobedience of our orders... we feel that the very purpose of the Consumer Protection Act will fail if persons like the accused are not brought to book and punished in accordance with the law,” the order mentioned.