BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAS NAGAR, MOHALI

                                  Consumer Complaint No.  26 of 2015

                                 Date of institution:          13.01.2015

                                               Date of Decision:            27.07.2015

Arvind Kumar son of Parkash Chand resident of village Kachhwin, P.O. Sohari, Tehsil Bijhari, District Hamirpur, Himachal Pardesh.

    ……..Complainant

                                        Versus

1.     The Sky Rock City Welfare Society, SCO 672, Sector 70, SAS Nagar,  Mohali Punjab through its President Navjeet Singh.

2.     Navjeet Singh, President, The Sky Rock City Welfare Society, SCO 672, Sector 70, SAS Nagar, Mohali Punjab

                                                                ………. Opposite Parties

Complaint under Section 12 of the

Consumer Protection Act, 1986.

CORAM

Mrs. Madhu. P. Singh, President.

Shri Amrinder Singh, Member

Mrs. R.K. Aulakh, Member.

Present:    Shri Vishal Ahuja, counsel for the complainant.

None for the OPs.

(Mrs. Madhu P. Singh, President)

ORDER

                The complainant has filed the present complaint seeking following direction to the Opposite Parties (for short ‘the OPs’) to:

(a)    refund the amount of Rs.3,30,625/- with interest @ 12% from the date of deposit till payment.

(b)    pay him Rs.1,00,000/-  compensation for mental and physical harassment.

(c)    pay him Rs.20,000/- as costs of litigation.

                The case of the complainant is that the OPs invited applications for taking members of the OP society and for booking of plots in Mullanpur.  The complainant filed application form Ex.C-1 for becoming member of the society and paid Rs.10,000/- as membership fee vide receipt dated 20.10.2011 Ex.C-1. The complainant also paid Rs.3,20,625/- to the OPs  vide receipt dated 06.07.2012 as first installment towards the cost of plot of 150 sq. yards as is evident from bank statement Ex.C-3.  At that time the OPs assured that they have all the approvals and clearances for starting the project.  The complainant was shocked to find that the promoter license issued to the OPs by the GMADA was cancelled and the further OPs were also not issued any license by the GMADA for the project.  The complainant contacted the OPs regarding status of the project but no satisfactory reply was given to him.  The complainant then sought refund of the amount from the OPs and the OPs undertook to refund the money by March, 2013 and then sought extension of time till 20.04.2013.  The complainant also sent legal notice dated 12.12.2014 to the OPs vide which refund of the deposited amount was sought but till date no refund has been made to him.  

2.             After admission of the complaint, notice was sent to the OPs.  The OPs have pleaded that the OPs are welfare society registered under the Societies Registration Act vide certificate dated 04.08.2010.   The GMADA also issued certificate of registration dated 10.08.2011 to the OPs. Change of Land Use was also issued by the GMADA in favour of the Ops on 14.09.2011.  The layout plan was also approved and granted on 09.01.2012. No Objection Certificate with regard to 25 acres of land was granted in favour of the OPs by various departments such as Forest Department, Pollution Control Board, Electricity Board, Indian Air Force, Municipal Counsel Kharar, PWD Department Punjab, Deputy Commissioner Mohali as well as by GMADA.  Letter of intent dated 23.09.2013 was issued by the GMADA for setting up a residential colony namely M/s. Sky Rock City. The OPs in furtherance of clause (ii) of letter of intent dated 23.09.2013 furnished bank guarantee on 08.10.2013 for Rs.1,50,25,000/- i.e. 25% of the estimated cost of the development works of the society and also deposited Rs.22.70 lacs as 15% of the total EDC charges, Rs.0.02 lacs as Urban Development fund and Rs.23.78 lacs as Social Infrastructure Fund in favour of the GMADA.  Department of Forest and Wild Life Protection, Punjab and Drainage Department also issued No Objection Certificates in favour of the OPs on 30.09.2013 and 01.10.2013 respectively.  Lastly the GMADA vide letter dated 06.05.2014 issued license for developing the colony at Sector 111-112, SAS Nagar Mohali.    The complainant became member of the society by paying Rs.10,000/- on 26.01.2012  and also deposited Rs.25,000/- and both the amounts are non refundable.  As per Clause 17 of the Memorandum of the Society the matter can be adjudicated by the Arbitrator.  The OPs have sought dismissal of the complaint.

3.             To succeed in the complaint, the complainant proved on record affidavit Ex.CW-1/1 and tendered in evidence documents Ex.C-1 to C-8.

4.             The complainant closed his evidence on 25.05.2015 and the case was adjourned to 11.06.2015 for evidence of the OPs but none appeared for the OPs to

5.             We have heard learned counsel for the parties and have also gone through written arguments filed by them.

6.             The complainant was approached by the OPs to become a member of the society and then he purchased a plot in the project in Mullanpur, New Chandigarh (Punjab). The OPs have assured that the project was approved by the competent authority as the map copy of the location of the site was shown on the website www.gamada.org (GMADA Mohali).  Believing the assurance of the OPs, the complainant became its member after paying membership fee on 20.10.2011 vide Ex.C-2 i.e. duly issued receipt by the OPs, has booked a 150 sq. yard plot @ Rs.8550/- per sq. yard as per the application form dated 06.07.2012 and vide receipt dated 06.07.2012 paid a sum of Rs.3,20,625/- being part payment of the land cost.  Before the complainant made further payments, a public notice by the Addl. Chief Administrator (competent authority) GMADA issued for the general public information that the certificate of registration as promoter issued to the OPs has been cancelled.  Therefore, the complainant vide his request letter dated 23.08.2013 sent vide registered post to the OP sought refund of the deposited amount.  The said request of refund has been duly acknowledged and replied to by the OPs vide Ex.C-7 dated 15.03.2013 wherein the OPs have agreed to refund the deposited amount by 20.04.2013. The grievance of the complainant is that the OPs being developer and service provider have failed to stand upto their own commitment of refund of the deposited amount and till date no amount has been paid to the complainant.  Therefore, the complainant has raised the present complaint alleging deficiency in service and unfair trade practice on the part of the OPs.

7.             Denying deficiency in service and unfair trade practice, the OPs have taken a stand that the promoter license which was earlier cancelled has now been restored and the work of development is in progress and the OPs are in process of allotment of plots to eligible members who have paid 90% installments. 

8.             We have perused the documents Annexure OP-4 attached with reply of the OPs and found that the license alleged to has been restored in favour of the OPs is not for the residential development project of Mullanpur village, rather it is for another project of the OPs situated at village Behrampur, District SAS Nagar (Mohali). Thus, the OPs have given misleading information during the proceedings before this Forum. 

9.             The limited question for resolving the dispute between the parties is now left to be seen is whether the OPs, once have committed to repay the deposited amount by 20.04.2013 can withhold the  refund of the said amount indefinitely as per their own whims and fancies and whether the act of the OPs in non refunding the deposited amount despite its definite assurance is an act of deficiency in service and unfair trade practice leading to mental harassment, agony and financial loss to the complainant. 

10.           The answer to the first question is quite evident from the perusal of Ex.C-7 wherein the OPs have admitted having received the deposited amount, request for its refund and assured to return the amount by 20.04.2013. The act of the OPs in non refund of the amount beyond the promised date cannot in any term be allowed to continue indefinitely as the OPs are bound by their own admission.

11.           For the next question, since the OPs have admitted to refund the amount by 20.04.2013 as per Ex.C-7 and till date has not proved on record having made the said payment to the complainant, therefore, the OPs have indulged into the act of deficiency in service and unfair trade practice by not honouring their own commitment.

12.           The acts of the OPs, therefore, have caused mental agony and financial loss to the complainant as he has been deprived of his valuable property  i.e. an amount of Rs.3,20,625/- and has further been deprived of  cheap affordable house. Thus, the complaint deserves to be allowed and the complainant deserves to be compensated.

13.           Therefore, the complaint is allowed with the following direction to the OPs to:

(a)    to refund to the complainant Rs.3,20,625/-  (Rs. Three lacs Twenty thousand  six hundred twenty five only) with interest thereon @ 12% per annum from the date of deposit till actual realisation.

(b)    to pay to the complainant Rs.25,000/- (Rs. Twenty five thousand only) for mental agony, harassment and costs of litigation.

                Compliance of this order be made within a period of thirty days from the date of receipt of a certified copy of this order. Certified copies of the order be furnished to the parties forthwith free of cost and thereafter the file be consigned to the record room.

Pronounced.                           

July 27, 2015.     

                           (Mrs. Madhu P. Singh)

                                                                        President

(Amrinder Singh)

Member

(Mrs. R.K. Aulakh)

Member