| ORDER | BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION: AT HYDERABAD. C.C.No.76 OF 2010 Between Consumer interests Protection and Research Association (CIPRA) 004, Vigneswara Heavens Apartment Khairatabad, Hyderabad – 4. (on behalf of 11 defacto complainants) Complainants And Mr.K.Sreenivasula Reddy, R/o.Flat No.301, Sai Sannidhi Residency, Road No.44 C, Chaitanyapuri Dilsukhnagar, Hyderabad-500 060. Opp.party . For the Complainant : CIPRA rep. by Mr.K.Venkateswarulu For the Opp.party : served through paper publication. QUORUM: THE HON’BLE SRI JUSTICE D.APPA RAO, PRESIDENT, SMT.M.SHREESHA, HON’BLE MEMBER, AND SRI S.BHUJANGA RAO, HON’BLE MEMEBR. TUESDAY, THE TENTH DAY OF JULY, TWO THOUSAND TWELVE Order (Per Smt.M.Shreesha, Hon’ble Member) ***
The brief facts as set out in the compliant are that the complainant filed the complaint on behalf of 11 defacto complainants stating that the complainants have invested in the opposite party company for purchase of plots between 200 sq. yds to 400 sq. yds., and so on, the details of which are as follows: DETAILS OF INVESTMENTS OF CONSUMERS IN M/S. VIRAT MARKETING & | SMART FUTURE SHOPPING & SERVICES PVT.LTD | Sl.No | Name of the Investor | Amount invested with Data Rs. | Committed Compensation | Received Amount Rs | Balance Rs. | Schemes/Units | Documents given by the SVM/Future | Tentative Ownership/Proposed Project | M/s. Virat Marketing | M/s. Smart Future Shopping | Receipt | MOU | Ext. Funding | 1 | a) N. Sangeeta | 2,50,000/- 16.06.2009 (24M) | 5,00,000/- | 1,66,000/- | 3,33,000/- | √ | | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400+200= 600 Sq. Yds. in a proposed project/preference shares | | b) N. Sangeeta | 1,25,000/- 23.03.2009 (24M) | 2,50,000/- | 1,25,000/- | 1,25,000/- | √ | | √ | √ | | 2 | N. Prameelamma | 2,50,000/- 02.11.2009 (24M) | 5,00,000/- | 62,500/- | 4,37,500/- | √ | | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 3 | N. Nagesh | 2,50,000/- 04.03.2009 & 23.03.2009 (1.25+1.25) SF+SVM (18M) | 5,00,000/- | 2,50,000/- | 2,50,000/- | √ | √ | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 4 | Juluru Rajender | 5,00,000/- (3.60+1.40) 05.03.2009 (18M) | 7,00,000/- | 3,60,000/- | 2,40,000/- | √ | | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 1 Acre. in a proposed project/preference shares | 5 | J. Suvarna | 2,50,000/- 13.03.2009 (21M) | 5,00,000/- | 2,50,000/- | 2,50,000/- | √ | √ | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 6 | Narahari Srikumar | 1,25,000/- 03.03.2009 (18M) | 2,50,000/- | 1,25,000/- | 1,25,000/- | √ | √ | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. in a proposed project/preference shares | 7 | N. Sreenivasulu | 1,25,000/- (18M) | 2,50,000/- | 1,29,000/- | 1,21,000/- | | √ | √ | √ | √ | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. in a proposed project/preference shares | 8 | Raju Immadisetti | 1,00,000/- 24.09.2009 (24M) | 2,00,000/- | 76,000/- | 1,24,000/- | √ | | √ | | √ | He is given external funding partner letter for 1.00 lakh amount and promised amount is Rs. 12,750/- per month for 24 months | 9 | Seshamamba | 1,00,000/- 10.09.2009 (24M) 2,00,000/- 05.01.2010 (24M) 1,00,000/- 13.02.2009 (24M) | 3,06,000/- 4,12,000/- 3,06,000/- | 1,02,000/- | 9,22,000/- | √ | | √ | | √ | She is the tentative owner in a proposed project and she is also given external funding partner letter as enclosed | 10 | a) Bharathi Reddy | 1,00,000/- 09.02.2010 (12M) | 3,06,000/- | 25,500/- | 2,80,500/- | √ | | √ | | √ | She is the tentative owner in a proposed project and she is also given external funding partner letter as enclosed | | b) Bharathi Reddy | 1,00,000/- 22.04.2009 (21M) | 2,01,600/- | 33,600/- | 1,68,000/- | √ | | √ | | √ | 11 | M. Pundarika | 1,00,000/- 22.04.2009 (21M) | 1,99,992/- | 91,663/- | 1,08,000/- | √ | | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. | | TOTAL OF 11 CONSUMERS | 26,75,000/- | 56,31,592/- | 17,35,000/- | 36,94,000/- | | | | | | | | | | | | | | | | | | | | |
It is the complainant’s case that the opposite party collected funds in the name of investments and issued receipts in the name of fake companies M/s.Shri Virat Marketing and also Smart Future Shopping and Services Pvt. Ltd., company and maintained both these schemes at one address i.e. 6-3-662/B/4, Second floor, Sangeetnagar, Erramanzil, Hyderabad. The complainant submits that M/s.Shri Virat Marketing is not even registered with the Registrar of Companies but has entered into Memorandum of Understanding (MOU for short) with the investors herein. The investors did not get any monthly benefit right from March, 2010 and hence this complaint seeking directions to the opposite parties to refund the amounts paid along with interest, to register the lands as stated in the table and also as per the MOU for which the complainants are tentative owners and to refund the excess amount paid for the land after comparing the land value as per the records together with compensation of Rs.20,000/- and costs of Rs.5,000/- to each complainant. Notice sent by post and personal notice were both returned unserved and the complainant was permitted to take substituted service by publishing the notice in Ándhra Jyothi’ and the matter was posted on 11-4-2011 for their appearance but none appeared. It is the complainant’s case that 11 investors had invested in the opposite party company, the details of which are as follows: DETAILS OF INVESTMENTS OF CONSUMERS IN M/S. VIRAT MARKETING & | SMART FUTURE SHOPPING & SERVICES PVT.LTD | Sl.No | Name of the Investor | Amount invested with Data Rs. | Committed Compensation | Received Amount Rs | Balance Rs. | Schemes/Units | Documents given by the SVM/Future | Tentative Ownership/Proposed Project | M/s. Virat Marketing | M/s. Smart Future Shopping | Receipt | MOU | Ext. Funding | 1 | a) N. Sangeeta | 2,50,000/- 16.06.2009 (24M) | 5,00,000/- | 1,66,000/- | 3,33,000/- | √ | | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400+200= 600 Sq. Yds. in a proposed project/preference shares | | b) N. Sangeeta | 1,25,000/- 23.03.2009 (24M) | 2,50,000/- | 1,25,000/- | 1,25,000/- | √ | | √ | √ | | 2 | N. Prameelamma | 2,50,000/- 02.11.2009 (24M) | 5,00,000/- | 62,500/- | 4,37,500/- | √ | | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 3 | N. Nagesh | 2,50,000/- 04.03.2009 & 23.03.2009 (1.25+1.25) SF+SVM (18M) | 5,00,000/- | 2,50,000/- | 2,50,000/- | √ | √ | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 4 | Juluru Rajender | 5,00,000/- (3.60+1.40) 05.03.2009 (18M) | 7,00,000/- | 3,60,000/- | 2,40,000/- | √ | | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 1 Acre. in a proposed project/preference shares | 5 | J. Suvarna | 2,50,000/- 13.03.2009 (21M) | 5,00,000/- | 2,50,000/- | 2,50,000/- | √ | √ | √ | √ | | She is also called a tentative owner of a proposed project also having tentative ownership for 400 Sq. Yds. in a proposed project/preference shares | 6 | Narahari Srikumar | 1,25,000/- 03.03.2009 (18M) | 2,50,000/- | 1,25,000/- | 1,25,000/- | √ | √ | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. in a proposed project/preference shares | 7 | N. Sreenivasulu | 1,25,000/- (18M) | 2,50,000/- | 1,29,000/- | 1,21,000/- | | √ | √ | √ | √ | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. in a proposed project/preference shares | 8 | Raju Immadisetti | 1,00,000/- 24.09.2009 (24M) | 2,00,000/- | 76,000/- | 1,24,000/- | √ | | √ | | √ | He is given external funding partner letter for 1.00 lakh amount and promised amount is Rs. 12,750/- per month for 24 months | 9 | Seshamamba | 1,00,000/- 10.09.2009 (24M) 2,00,000/- 05.01.2010 (24M) 1,00,000/- 13.02.2009 (24M) | 3,06,000/- 4,12,000/- 3,06,000/- | 1,02,000/- | 9,22,000/- | √ | | √ | | √ | She is the tentative owner in a proposed project and she is also given external funding partner letter as enclosed | 10 | a) Bharathi Reddy | 1,00,000/- 09.02.2010 (12M) | 3,06,000/- | 25,500/- | 2,80,500/- | √ | | √ | | √ | She is the tentative owner in a proposed project and she is also given external funding partner letter as enclosed | | b) Bharathi Reddy | 1,00,000/- 22.04.2009 (21M) | 2,01,600/- | 33,600/- | 1,68,000/- | √ | | √ | | √ | 11 | M. Pundarika | 1,00,000/- 22.04.2009 (21M) | 1,99,992/- | 91,663/- | 1,08,000/- | √ | | √ | √ | | He is also called a tentative owner of a proposed project also having tentative ownership for 200 Sq. Yds. | | TOTAL OF 11 CONSUMERS | 26,75,000/- | 56,31,592/- | 17,35,000/- | 36,94,000/- | | | | | | | | | | | | | | | | | | | | |
The complainant has also filed the MOU’s entered into between the 11 investors and the opposite party evidenced under Exs.A3 to A31. As per the terms of this MOU’s, the owner is a tentative owner and is allotted redeemable preference shares of Rs.2,50,000/- from its authorized capital out of which Rs.62,499/- will be redeemed after 20 months and the balance will be redeemed with monthly benefits. (Ex.A3). To safeguard the interest of the tentative owner against the preference shares, owner/opposite party hereby allots the tentative owner partial ownership of the area equivalent to preference shares value in the proposed project being 400 sq. yds. to the tentative owner in the project for 24 month, the period for which commences from 25-4-2009. Tentative ownership will not be treated before the end of this period, except as provided on mutual consent by giving three month’s notice from either side. After the expiry of six months, it is deemed a confirmed MOU and in event of cancellation, the amount paid by the tentative owner will be forfeited. It is also stated in the terms that the tentative owner is eligible for compensation/benefit from the owner i.e. Rs.11,281/- per month and Rs.3918/- towards redemption of preference shares amounting to Rs.62,499/- and Rs.624/- towards profit on preference share. Under payment terms 2 B, 3,4,5,6 to 6c it is stated as follows: 2 Payment: b) The owner shall see to it that the monthly compensation/benefit amount is paid to the Tentative owner without any delay, regularly and punctually on the 25th day of every month. If the owner fails to give the committed compensation/benefit continuous there (three) months the tentative owner is eligible to get the three instalments with interest. If the owner fails to pay the compensation/benefit for continuous 6 months, without any prior intimation, the tentative owner can handover the mortgaged land. 3. Maintenance/Development/Building costs and Expenses etc. a) The Maintenance charges, Electricity charges, Water charges and all the taxes, outgoing in respect of the said property/proposed project shall be solely looked after by the owner and it shall be the responsibility of the Owner to pay the same. 4. Assignment by Owner: The owner agrees that during the term of this memorandum of understanding, they are not entitled to sell, transfer, relinquish right in the said proposed project assigned in favour of tentative owner unless and until it is according to this indemture. But the total area/sq. ft. cannot be compared/equated against the amount received. 5. Terms Binding on: The owner shall let the said area to any person/corporate entity of their choice as per their business needs and the tentative owner does not have any rights to interfere in any mater related to the renting of the said areas. 6. Terms binding on Tentative owner: a. The Tentative Owner understands and agrees that the ownership allotted to him by the Owner is Tentative and just to safeguard his rights and to secure the redemption of preference shares and he/she is not entitled to claim the ownership rights in the said area except the Redemption of preference shares from the owner after 20 months and monthly compensation against the tentative ownership of said area. b.The Tentative Owner agrees that not withstanding anything contained in the provision herein written, the Tentative owner is just entitled to the compensation amount against the said area only till twenty months upto the date of redemption of preference shares and thereafter he/she shall surrender the Memorandum of Understanding to the Owner and preference shares certificate and get the amount of Rs.62,499 (20833 x 3 months) of redemption of preference shares back from the owner. c. The Tentative owner agrees with the fact that the Ownership allotted to him is just the period of twenty months and as soon as the period of Ownership as provided in these presents is over he/she shall get the redemption of preference shares back from the owner on surrendering the documents available with the tentative owner in respect and in connection with the transaction provided in these presents. From the aforementioned MOU terms which are not refuted as the opposite party did not choose to appear before this Commission and as the amounts were not paid to the 11 investors as promised in the MOU, the act of the opposite party amounts to deficiency in service and the opposite party is directed to refund the amounts invested together with interest at 9% p.a. from the respective dates of investment till the date of realization together with costs of Rs.5,000/- to each of the complainants. The prayer of the complainant to register the lands as stated in the complaint table (MOUs) cannot be directed by this Commission as there is no documentary evidence on record to establish that these plots are still available as on today and no allotted plot numbers are mentioned either in the table or in the M.O.Us. In the absence of any allotted plot numbers, it is difficult to check if they are covered in the said surveyor numbers enlisted in the sale deeds (Ex.A33) further the sale deeds filed by the complainant have been entered into by third parties with the opposite party in the name of his company which admittedly is unregistered company and this Commission cannot go into the aspects of cheating or fraud and the prayer also includes the refund of excess amount ( if any) for the land after comparing the land value as per the records and keeping in view the facts and circumstances, such a direction of comparing the land values as per the records is beyond the scope and jurisdiction of this Commission. Keeping in view the equities, we are of the considered view, that refund of the amounts paid would meet the ends of justice. Since interest is being awarded by way of damages, we do not see any grounds to award further compensation. In the result this complaint is allowed in part directing the opposite party to refund the amounts invested from the respective dates of investment as per MOUs, receipts and agreements filed i.e. MOU’s Exs.A3-Rs.2,50,000/- A4-Rs.1,25,000/- A5-Rs.2,50,000/- A7-Rs.1,25,000/- A9-Rs.1,25,000/- A11-Rs.5,00,000/- A13-Rs.2,50,000/- A15-Rs.1,25,000/- A17-Rs.1,25,000/- A31-Rs.1,00,000/- and Agreements for External Funding Partner i.e Ex.A19-Rs.1,00,000/- A21-Rs.1,00,000/- A23-Rs.1,00,000/- A25-Rs.2,00,000/- A27-Rs.1,00,000/- A29-Rs.1,00,000/- supported by receipts A6, A8, A10, A12,A14, A16,A18,A20, A22, A24, A26, A28, A30, A32 for MOUs and Agreements of External Funding Partner together with interest at 9% p.a. and costs of Rs.5,000/- to each of the complainants within a period of one month from the date of receipt of this order. Sd/-PRESIDENT. Sd/-MEMBER. Sd/-MEMBER. JM Dt.10-7-2012 APPENDIX OF EVIDENCE For Complainants For Opposite party Affidavit evidence of the 4th complainant filed. -Nil- Witness examined For Complainants For Opposite party -Nil- -Nil- EXHIBITS MARKED for the complainants Ex A-1 Letter to Registrar of companies by District Consumer Information Centre dt :18.6.2010 Ex A-2 Letter dt : 28.6.2010 addressed to DCIC, Hyd from Govt. of India. Ex A-3 Memorandum of Understanding dt : 25.4.2009 (twelve sale deeds) Ex A-4 Memorandum of Understanding dt : 13.3.2009 Ex A-5 Memorandum of Understanding dt : 05.09..2009 Ex A-6 Receipt issued by Sreevirat marketing dt : 5.9.2009 Ex A-7 Memorandum of Understanding dt : 01.2.2009 Ex A-8 Receipt dt : 1.2.2009 issued by Smartfuture shopping and services pvt ltd Ex A-9 Memorandum of Understanding dt : 10.3.2009 Ex A-10 Receipt issued by Sreevirat marketing dt : 10.3.2009 Ex A-11 Memorandum of Understanding dt : 05.09..2009 Ex A-12 Receipt issued by Sree Virat marketing dt : 5.9.2009 (two numbers) Ex A-13 Memorandum of Understanding dt : 18.3.2009 Ex A-14 Receipt issued by Sree virat marketing dt : 18.3.2009 Ex A-15 Memorandum of Understanding dt :24.1.2009 Ex A-16 Receipt issued by Smartfuture dt : 24.1.2009 Ex A-17 Memorandum of Understanding dt : 05.2..2009 Ex A-18 Receipt issued by Smart Future dt : 5.2.2009 Ex A-19 Agreement for external Funding partner dt : 23.9.2009 Ex A-20 Receipt issued by Sreevirat marketing dt : 24.9.2009 Ex A-21 Agreement for external funding partner dt : 13.12.2009 Ex A-22 Receipt issued by Sree virat dt : 10.9.2009 Ex A-23 Agreement for external funding partner dt : 10.9.2009 Ex A-24 Receipt dt : 13.12.2009 issued by Sree virat marketing Ex A-25 Agreement for external funding partner dt : 5.1.2010 Ex A-26 Receipt dt : 5.1.2010 issued by Sree Virat Marketing Ex A-27 Agreement for external funding partner dt : 01.01.2010 Ex A-28 Receipt issued by Sree virat markeing dt : 1.1.2010. Ex A-29 Agreement for external funding partner dt 08.2.2010 Ex A-30 Receipt issued by Sree Virat dt : 9.2.2010 Ex A-31 Memorandum of understanding dt : 22.4.2009 Ex A-32 Receipt issued by Sree virat marketing dt : 22.4.2009 Ex A-33 Details of land owned by K.Sreenivasulu reddy and 12 sale deeds filed in CCIA No.1176/2012. Exhibits marked for the opposite parties : -Nil- Sd/-PRESIDENT. Sd/-MEMBER. Sd/-MEMBER. JM Dt.10-7-2012 | |
