E-Paper
Developer directed to refund ₹2.36 lakh to disabled plot buyer
Additional District Consumer Disputes Redressal Commission, Pune, has directed a builder to refund ₹2.36 lakh to a disabled consumer who had booked a plot in a subsequently cancelled project
PUNE: Holding a developer guilty of unfair trade practice and deficiency in service, the Additional District Consumer Disputes Redressal Commission, Pune, has directed Shree Balaji Developers to refund ₹2.36 lakh to a disabled consumer who had booked a plot in a subsequently cancelled project. The commission also ordered the developer to pay 9% annual interest on the amount, ₹25,000 as compensation for mental agony and ₹15,000 towards litigation costs.
The order was passed by a bench comprising Arun R Gaikwad (president) and members Kanchan S Gangadhare and Pranali Sawant in a complaint filed by Madhusudan Pralhad Joshi against the developer. The complaint was filed on April 26, 2024, and a copy of the judgment was made available on August 7.
According to the complaint, Joshi, a person with disabilities, had booked an 11-guntha plot in the developer’s Konkan Vaibhav project in October 2020. Between October 2020 and July 2021, he paid a total of ₹3.01 lakh towards the purchase. However, the project was subsequently cancelled. The developer refunded only ₹65,000, leaving ₹2.36 lakh unpaid.
The complainant told the commission that despite repeated follow-ups, legal notices and a memorandum of understanding (MOU) executed between the parties, the developer failed to honour its commitment to refund the outstanding amount.
The developer subsequently issued four cheques totalling ₹2.20 lakh, but all of them were dishonoured when presented for payment.
The matter was proceeded with ex parte as the developer remained absent throughout the proceedings.
The commission observed that Joshi had produced sufficient documentary evidence, including the booking form, payment receipts, the MOU, dishonoured cheques and legal notices, to substantiate his claim.
“After cancellation of the project, the developer was legally bound to refund the entire amount,” the commission observed. Joshi had sought interest at 18% per annum and ₹1 lakh as compensation. However, considering the facts and circumstances of the case, the commission awarded interest at 9% per annum.
The commission also noted that Joshi, being a person with disabilities, had suffered financial hardship, repeated legal proceedings and mental harassment while attempting to recover his own money.
The developer has been directed to pay the decretal amount within 45 days, else the interest rate on the principal amount will increase from 9% to 12% per annum until realisation, the commission ordered.
