Failure to refund a homebuyer despite a consumer court order has cost a Mohali developer dearly as he will now have to undergo two-years of rigorous imprisonment (RI) and pay ₹1 lakh additional amount as fine.
The developer, Navjeet Singh, president of Sky Rock City Welfare Society, has already been awarded six-year RI in two other similar cases.
In March 2019, the Mohali district consumer disputes redressal commission had directed the society to refund ₹2.12 lakh, along with 12% annual interest from the dates of deposit, to a Patiala resident, Sushil Kumar, for failure to deliver possession of a plot. The society was also told to pay an additional ₹25,000 as compensation for mental harassment and ₹5,000 as litigation expenses.
Despite the order, the society failed to make the payment, prompting Kumar to initiate execution proceedings. During the hearing, Singh stated that he was willing to offer plot possession instead of refund.
A bench, comprising commission president SK Aggarwal and member Lt Col Jasbir Singh Bath, observed that the very purpose and object of the Consumer Protection Act would be frustrated if its orders are not complied with. It further noted that more than seven years had passed since the refund order and the complainant had still not received his money, nor has the developer been able to produce any evidence justifying the prolonged delay.
“...People like the complainant are crying but the accused is not complying with the orders of this commission,” the bench further said while convicting Singh under Section 72 (non-compliance of consumer forum orders) of the Consumer Protection Act, 2019.
{{/usCountry}}“...People like the complainant are crying but the accused is not complying with the orders of this commission,” the bench further said while convicting Singh under Section 72 (non-compliance of consumer forum orders) of the Consumer Protection Act, 2019.
{{/usCountry}}In case the convict fails to pay up the fine, he will undergo an additional two months’ imprisonment. Of the fine amount, ₹50,000 will be paid to the complainant and the remaining ₹50,000 will be deposited in the state exchequer.