BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE URBAN

 29^th DAY OF FEBRUARY 2016

O R D E R

SRI. P.V SINGRI, PRESIDENT

All these complaints have been filed by different complainants against one and the same OPs seeking similar relief.  Issues involved in all these complaints are one and the same.  Therefore, all these complaints have been taken up together for disposal under this common order.

2. The complainants have filed these complaints U/s.12 of the Consumer Protection Act, 1986 against the Opposite Parties (herein after referred as OPs) claiming refund of the advance amount paid by each of them towards purchase of sites together with interest, compensation and cost of the litigation.

3. The brief averments made in all these complaints are as under:

The OP is a real estate promoter and property developers engaged in the business of developing, marketing and selling residential sites in and around Bangalore.  The OPs promised to form residential layout under the name and style;

“Royal Enclave” in various survey numbers situated at Maratti Kyathanahalli Village, Jaipura Hobli, Mysore Taluk, Mysore District.

“Royal County” in various survey numbers situated at Chikka Hullur Village, Kasaba Hobli, Hoskote Taluk, Bangalore Rural District.

“Presidency Royal” in various survey numbers situated at Muddapura, Karenahalli Village, Ramanagara Taluk and District.

“Presidency Elite” in various survey numbers situated at Doddamarahalli, Yelluvahally, Varamallenahalli, Nandi Hobli, Chickaballapura Taluk and District.

The complainants and others were lured by the OPs to purchase sites to be formed in the said layouts.  Believing that the OPs would form the layouts within stipulated period and handover possession of sites immediately after registration agreed to purchase the sites in the “Royal Enclave” / “Royal County” / “Presidency Royal”  “Presidency Elite” layouts.

          The complainants have paid advance amount as mentioned above, through cheques/cash and OPs received said advance amount from each of the party on the dates mentioned above.  The OPs promised and assured that they will execute sale deed in favour of the complainants within 30 days from the date of approval of layout plan from the competent authority.  However, the OPs went on postponing the registration of the sale deed on one or the other pretext.  The complainants visited the OPs several times with a request to execute the sale deed in their favour by taking the balance amount.  However, the OPs went on taking time for execution of the sale deed.  Frustrated by the attitude of the OPs, the complainants were compelled to issue legal notice to the OPs demanding refund of the advance amount as the OPs failed either to complete the formation of the layout within a reasonable time much less within stipulated time and execute registered sale deed.  Despite the said legal notice, the OPs failed to refund the advance amount.  OPs deliberately avoiding refund of the advance amount.  The conduct of OPs amounts to grave deficiency in service on their part.  The OPs with a sole intention to cheat the complainants are avoiding the repayment of the advance amount.  Therefore, the complainants had to approach the Forum for redressal.

For the aforesaid reasons, each of the complainants prays for refund of the advance amount paid to OPs together with interest @ 24% p.a and compensation of Rs.1,00,000/- for mental agony, harassment and inconvenience caused together with litigation cost.

4. The notice of the complaints were issued to the OPs however the same were returned with an endorsement by the postal authorities that the OPs have ‘left’ the address.  Thereafter, the complainants took substitute service by publishing the notice of the complaint in the local news paper.  Despite publication of the notice in the news paper, OPs failed to appear and contest the complaints.  Therefore, the OPs were placed ex-parte.

5. Thereafter, each of the complainants were called upon to file their affidavit evidence.  Accordingly each of the complainants have filed their affidavit evidence in lieu of oral evidence to substantiate the allegations made in their respective complaints.  The complainants have also submitted their written arguments.

6. Perused the allegations made in the complaint, the sworn testimony of the complainants, copies of receipts and other materials placed on record.

7. As already stated above, the OPs for the reasons best known to them despite publication of notice of the complaint in the local newspaper failed to appear before the Forum and contest the claim of the complainants.  The copy of the receipts produced by each of the complainants confirms the payment of advance amount by each one of the complainants as stated in their complaints.  It appears that, the OPs did not form the layout at all as promised by them.  It appears that, the OPs have purchased certain lands but failed to get the same converted for the purpose of laying residential layout.  From the conduct of OPs, it appears that they received the advance amount much before purchase of lands with an oblique motive of cheating the complainants.  The OPs have collected huge advance amount from each one of the complainants promising them their dream sites at an early date.  However, the OPs cheated the complainants and failed to form any residential layout.  The OPs having failed to form the layout and execute the registered sale deed in favour of the complainants ought to have refunded the advance amount collected from each of the complainants.  However they did not do so.  The conduct of the OPs amounts to grave deficiency in service and also amounts to unfair trade practice.  It is apparent from the conduct of the OPs that, they collected huge advance amount from each of the complainants with an oblique motive of cheating them.  Therefore, the said act of OPs also amounts to cheating punishable U/s.420 of Indian Penal Code.

8. We do not have reasons to disbelieve the sworn testimony of the complainants coupled with the documents such as receipts produced by the complainants.  For the discussions made above, we are of the opinion that, the OPs have to be directed to refund the advance amount received from each one of the complainants together with interest @ 18% p.a.  The conduct of OPs must have caused mental agony, harassment and lot of inconvenience to each of the complainants.  Therefore, the OPs have to be directed to pay compensation of Rs.1,00,000/- towards deficiency in service on their part together with litigation cost of Rs.3,000/-. 

9. The order could not be passed within the stipulated time due to heavy pendency.  

10. In the result, we proceed to pass the following:   

                         O R D E R

The complaints filed by the complainants U/s.12 of the Consumer Protection Act, 1986 are allowed in part.

The OPs in complaint No.50/2014 are directed to refund advance amount of Rs.15,00,000/- to the complainant together with interest @ 18% p.a from the date of receipt till the date of realization.

The OPs in complaint No.53/2014 are directed to refund advance amount of Rs.2,75,000/- to the complainant together with interest @ 18% p.a from the date of receipt till the date of realization.

The OPs in complaint No.12/2015 are directed to refund advance amount of Rs.7,00,000/- to the complainant together with interest @ 18% p.a from the date of receipt till the date of realization.

The OPs in complaint No.13/2015 are directed to refund advance amount of Rs.7,00,000/- to the complainant together with interest @ 18% p.a from the date of receipt till the date of realization.

The OPs shall pay compensation of Rs.1,00,000/- to each of the complainants together with litigation cost of Rs.3,000/- to each.

The OPs shall comply the order passed by this Forum within eight weeks from today.

          Send the copy of the order to both the parties free of costs.

This original order shall be kept in the file of the complaint No.50/2014 and a copy of it shall be placed in other connected files.  

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Forum on this 29^th day of February 2016)

MEMBER                           MEMBER                     PRESIDENT

Vln* 

Witnesses examined on behalf of the complainant/s dated 07.08.2014 & 23.01.2016.

Documents produced by the complainant:
    (Complaint No.50/2014)

Documents produced by the complainant:
    (Complaint No.53/2014)

Documents produced by the complainant:
    (Complaint No.12/2015)

Documents produced by the complainant:
    (Complaint No.13/2015)

OPs - Absent

MEMBER                            MEMBER                    PRESIDENT

Vln*