Counsel for the complainant : Party in person
Counsel for the opposite Parties : Absent
O R D E R
(By Sri P. Vijender, B.Sc., LL.B., President on behalf of the bench)
This complaint is preferred under Section 12 of C.P. Act 1986 alleging unfair trade practice and deficiency of service on the part of the opposite parties
- The complainant’s case in brief is that when he and his spouse went for shopping at Big Bazar, the executives of opposite party approached and got filled some forms with his address and telephone number and later received a phone call from the said executives informing that they were selected in a lucky draw and were asked to come to Hotel in Abids by name Royalton Hotel to collect a gift. Hence he and his spouse went to Hotel in Abids on April 4th 2017 where the presentation was made by the opposite party with some audience explaining the holiday club membership programme etc. From the said presentation complainant learnt that the opposite parties are engaging in the business of hospitality and providing services in affiliated clubs, hotels and Resorts at various places. After the presentation was over one of the sales executive of opposite party byname Mr. Mohammed Ali approached the complainant and his wife and explained about the club membership which involves holiday membership and allotment of plot and induced them to take club membership with opposite party. In the meanwhile in charge by name Mr. Javeed also came to the complainant and his spouse and explained the venture of house plot to be selected in the event of taking membership in the club which is free for life. They were further told that the house plot offered is side of Tandur Road which is almost 70 KM away from Hyderabad. Having attracted by the presentation made by executive of opposite party and the event manager the complainant agreed to become a member and settled a price. The complainant paid a sum of Rs.2,35,000/- towards membership fee and Rs.65,000/- towards registration of two plots . Thus the complainant paid total sum of Rs.3,00,000/- towards membership fee for holiday club, allotment of two plots and registration expenses thereof. The complainant and his wife were promised to allot two plots admeasuring 120 Sqyards each. Finally they got registered two plots on 3rd July 2017 in their names and gave sale deed original documents.
After collecting the total amount of Rs.3,00,000/- complainant was given membership agreement and sale deed of two plots dated 3-7-2017. In the meanwhile the complainant tried to find out the details of the company and affiliated hotels, resorts etc while searching for the details of the opposite party company and its affiliated clubs in Google and seen negative comments from different people who earlier became members. Then the complainant entertained the doubts and contacted sales Manager and sought for site visit to the house plot and approved layout copy. After much persuasion the sales Manager arranged a car for site visit. They showed only a barren land without even a Board displaying a name of the company to the complainant . When enquired sales executive with regard to status of the plot he informed that the development will start soon and copy of approval lay out will be sent by mail, but it never happened.
Thereafter complainant joined a group formed as one of the victims who were earlier enrolled as a member’s at the opposite party company and after sharing experiences with them, complainant realized that the owners of the company are Mr. Shiek Khadar Basha and Mr.Vijay Kumar and they have changed name of the company periodically and enticed people to become members and cheating them. Complainant also came to know that earlier said Mr. Shiek Khadar Basha and Mr.Vijay Kumar were arrested by police and seized their computers, documents , gift coins and coupons with some cash. Later the said case handed over to Punjagutta Police. Hence the complainant lodged a complaint at Panjagutta Police Station against the opposite party and where they were informed that their names will be included in the list of victims and accordingly their names were incorporated and thereafter there was no progress.
The complainant visited the office of opposite party at Khairatabad and spoke to Mr.Anuj Panday who is the Administrative Manager of the company and sought for a site visit and copy of layout. Upon that a second site visit was arranged for him and his wife and again no plot number no layout, no boundaries and it was different place . Hence complainant sought for refund of the money collected Mr.Anuj Kumar Panday who informed they have no authority to take any decision with regard to refund of the amount. Mr. Anuj Kumar Panday promised refund of the amount if he fails to construct boundary wall and complete plotting within four months. He gave the same in writing on the letter head of the company but thereafter nothing happened. He agreed to take them to the site in a week time but more than a month he never responded and till now nothing happened. Hence the present complaint for a direction to opposite parties to refund the amount with interest at 24% P.a from the date of collecting the amount to the date of realization.
- Opposite parties despite service of notice of this complaint did not turn up hence complaint is proceeded in exparty.
In the enquiry the complainant got filed his evidence affidavit reiterating the material facts of the complaint and to support the same got exhibited nine (9) documents. Complainant filed written arguments and made oral submissions.
Now points for consideration :
- Whether the complainant could make out a case of unfair trade practice or deficiency of service on the part of the opposite parties ?
- Whether the complainant is entitled for the amount claimed in the complaint?
- To what relief?
Point No.1&2: Ex.A1 is agreement for membership in the club of the opposite parties dated 19-4-2017 and it evidences that the final amount agreed to be paid by the complainant was Rs.2,35,000/-. Ex.A2 & A3 receipts evidencing the payment of Rs. 2,35,000/- by the complainant on 19/4/2017 & Rs.62,000/- on 20/05/2017 and additionally Rs.3,000/- by cash as service charge. As per terms of Ex.A1 membership agreement the person who enrolled as a member with opposite parties club are entitled holiday package for International destinations of two nights three days and in the case of domestic six nights seven days. It further stipulates the liability of member to pay Rs.9,000/- as Annual Maintenance Charges while continuing as a member with other features which are not relevant for the present complaint. But fact remains that the complainant paid Rs.3,00,000/- towards membership as well as the cost of the plots. Ex.A2 & A3 receipts evidences that complainant paid Rs.3,00,000/- towards Holiday membership and registration charges for two plots. Ex.A4 is Xerox copy of the sale deed executed in favour of the complainant by Shaik Nazeer Basha in his individual capacity for two plots of 120 Sq.yards each situate at Peddapur Village and Marpally Mandal, Vikarabad District. Ex.A7 is copy of FIR registered by Panjagutta Police Station and the contents of FIR reveals that one Mr. Koteshwar Rao also received a phone call from executives of the opposite parties that he too won a lucky draw and was asked to come to hotel and collect it and where the presentation was made and he was induced to become a member and collected Rs.1,20,000/- through credit card on 02-08-2017 and later he learnt that he was cheated by opposite parties executives then lodged a complaint . It fortifies that the promoters of opposite party under the guise of allotting house plots in the event of taking membership in the club collected huge amounts from the complainants without providing any services. Thus the collecting of amounts from the complainants by giving fake promises like providing the plot, holiday packages amounts to unfair trade practice and deficiency in service and also cheating because the plot of the sale deed is not existing. The documents placed on record remained un rebutted as there is no contest from the opposite party, hence there is no reason to dis-believe the same. The material brought on the record by the complainant has clinchingly proved that the opposite parties were indulged in unfair trade practice and collected huge amount from the complainant. Thus the complainant has made out a case of unfair trade practice and deficiency of service on the part of the opposite parties and is entitled for the amount paid with interest. Accordingly these points are answered infavour of the complainant.
Point No.3: In the result, the complaint is allowed directing the opposite parties to refund an amount of Rs.3,00,000/- to the complainant with interest @ 24% P.A from the date of agreement i.,e on 19-04-2017 to the date of payment. The opposite parties are further directed to pay Rs.10,000/- towards cost of this complaint
Time for compliance : 30 days from the date of service of this order
Dictated to steno, transcribed and typed by her, pronounced by us on
this the 3rd day of March , 2020.
LADYMEMBER MALEMEMBER PRESIDENT
APPENDIX OF EVIDENCE
Exs. filed on behalf of the Complainant:
Ex.A1- copy of the membership purchase agreement
Ex.A2&A3 are payment receipts dated 19-4-2017 & 20-5-2017
Ex.A4 – copy of priority services membership card
Ex.A5- copy of the sale deed
Ex.A6-copies of 4 different assurance email/letters, dated19-1-2018, 02/7/2018, 18/7/2018 and 30/3/2019 respectively
Ex.A7-copy of the FIR No.259/2018 dt.14-6-2018
Ex.A8- copy of the Commissioner’s Task force, North Zone Team, Hyderabad City police raided fortune Group of Estates and services on 22nd June, 2018
Ex.A9- A copy of proof of Mr.Shaik Nazeer Basha being one of the Directors of Priority Services registered at the Ministry of Corporate of Affairs, Government of India, Hyderabad
Exs. filed on behalf of the Opposite party : Nil
LADYMEMBER MALEMEMBER PRESIDENT
