GB Nagar district consumer commission directs builder to refund money for wrong info

GREATER NOIDA: The Gautam Budh Nagar District Consumer Disputes Redressal Commission has directed a Noida-based developer to refund the deposited amount of ₹2

GREATER NOIDA: The Gautam Budh Nagar District Consumer Disputes Redressal Commission has directed a Noida-based developer to refund the deposited amount of ₹2.75 lakh to a buyer for misguiding him over the approval of the project by the local development authority.

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According to the consumer forum’s order, Pankaj Kumar Gupta, the complainant, was allotted one-bedroom flat in Wave City Dream Homes at NH-24, Ghaziabad, at the rate of ₹2,352 per square foot in June 2013. At the time of the allotment of the flat, the developer had assured that the said project was duly approved by the Ghaziabad Development Authority (GDA).

Later, Gupta, a Delhi resident, came to know that no approval had been granted by GDA in respect of the said project. He then contacted the developer and wrote emails for the cancellation of allotment and refund of the deposited money. He paid an amount of ₹2,74,571, which was 20% of the total cost of flat, as per the order of the consumer forum.

The developer denied the allegation and stated that 20% of the basic sale price of the flat constituted the earnest money. The earnest money shall stand forfeited in case of default by the buyer not making payment of all instalments in time, the developer said.

Then Gupta filed a complaint with the consumer court on March 27, 2015, against the developer having its corporate office at Noida, seeking relief by directing the developer for cancellation of allotment of the flat and refund of the deposited money.

The developer stated that it had applied for the sanction of the site plan of the project on October 7, 2013, but it was sanctioned by GDA on July 14, 2014.

“The District Consumer Disputes Redressal Commission comprising president Anil Kumar Pundir and member Daya Shanker Pandey has directed the developer to cancel the allotment of flat and refund the deposited amount of ₹2,74,571, along with an interest of 9%. The order was delivered on January 29,” Aditya Bhati, representative of District Consumer Court Advocates Association, said on Thursday.

When asked, a Wave City spokesperson said, “We will honour the court order and refund the money.”