COMPLAINTS FILED ON: 18.06.2010<br /> DISPOSED ON: 28.08.2010 <br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM AT BANGALORE (URBAN)<br /> <br /> 28TH AUGUST 2010<br /> <br /> PRESENT:- SRI. B.S. REDDY PRESIDENT<br /> SMT. M. YASHODHAMMA MEMBER<br /> SRI. A. MUNIYAPPA MEMBER <br /> COMPLAINT Nos.1382, 1387, 1392, <br /> 1393 & 1396/2010<br /> <br /> COMPLAINT NO.1382/10<br /> COMPLAINANT<br /> <br /> <br /> <br /> Anjan Banerjee,<br /> S/o Anil Kumar Banerjee,<br /> Aged 39 years,<br /> R/at No.301, <br /> SR Blue Diamond Apartments, <br /> Lottegolla Halli, Devinagar,<br /> RMV Extn, 2nd Stage,<br /> Bangalore – 560 094.<br /> <br /> <br /> COMPLAINT NO.1387/10<br /> COMPLAINANT<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Shishir S. Shetty,<br /> S/o Mr. Sadashiva Shetty,<br /> Aged about 28 years,<br /> <br /> Rep: by his GPA holder,<br /> Mr. Sadashiv Shetty,<br /> S/o Late T. Raju Shetty,<br /> Age 61 years,<br /> R/at Flat No.209,<br /> Mukund Apartments,<br /> Palmgrove Road,<br /> Victoria Layout,<br /> Bangalore – 560 047.<br /> <br /> COMPLAINT NO.1392/10<br /> COMPLAINANT<br /> <br /> <br /> Mr. Arvind R. Sharma,<br /> S/o R. Raghunand,<br /> Aged about 23 years,<br /> R/at 002, K.T. Apartment-15, 10th Main, Malleswaram,<br /> Bangalore – 560 003.<br /> Rep: by GPA holder <br /> Dr. R. Raghunand,<br /> S/o Mr. C.S. Rangnatha Rao,<br /> R/at No.002, K.T.Apartment-15,<br /> 10th Main, Malleswaram,<br /> Bangalore – 560 003.<br /> <br /> <br /> COMPLAINT NO.1393/10<br /> COMPLAINANT<br /> <br /> <br /> <br /> Wg. Cdr. P.Ramakrishna,<br /> (Retd.),<br /> S/o Late Dr. P. Narasimha Rao,<br /> Aged about 52 years,<br /> B-204, Shriram Shristi Apartments,<br /> Sumangali Sevashram Road,<br /> Anand Nagar, Hebbal,<br /> Bangalore – 560 032.<br /> <br /> <br /> COMPLAINT NO.1396/10<br /> COMPLAINANT<br /> <br /> <br /> Sachin Upadhya,<br /> S/o Srikrishna Upadhya,<br /> Aged 32 years,<br /> R/at No.113, Lakshmi Nilaya,<br /> Ground Floor, 7th Cross, Railway Track Parellel Road,<br /> Munnekolal, Marathhalli,<br /> Bangalore – 560 037.<br /> <br /> Advocate: Sri.M.V. Charti<br /> <br /> <br /> V/s.<br /> <br /> <br /> OPPOSITE PARTY<br /> <br /> Sri. Vijay Tata Ravipathi,<br /> Proprietor,<br /> M/s Orange Construction & Infrastructure,<br /> Having its registered Office <br /> At 114/1, Outer Ring Road,<br /> Vijaya Bank Colony,<br /> Dodda Banaswadi,<br /> Bangalore – 560 043.<br /> <br /> Ex-Parte<br /> <br /> <br /> <br /> O R D E R<br /> <br /> SRI. B.S.REDDY, PRESIDENT<br /> <br /> These are the complaints filed U/s. 12 of the Consumer Protection Act of 1986, by the respective complainants seeking direction against Opposite Party (herein after called as O.P) to refund the amounts with interest at 18% p.a. and pay the arrears of rental and expenses incurred in visiting the office and for compensation on the allegations of deficiency in service on the part of the OP. <br /> <br /> As the OP in all the above complaints is common, the question involved, relief claimed being the same, in the interest of justice, in order to avoid the repetition of facts and multiplicity of reasonings, these complaints stand disposed of by this common order. <br /> <br /> The brief averments, as could be seen from the contents of these complaints, are as under:<br /> <br /> 2. The complainants being lured away with the advertisement and propaganda issued by the OP regarding a scheme towards the construction of residential apartments to be constructed in the schemes called as “Orange Township” and “Orange Villa” at Sannamanikera Village, Devanahalli Town, Bangalore Rural District; booked flats and villa paid initial advance amount to the OP. OP executed agreement to sell with an undertaking to complete construction within 18 months from the date of approval of the plan from the competent authorities and deliver the possession of the flat within 24 months from the date of approval of the plan. OP assured to pay certain amount every month towards monthly rentals till the completion of the project through ECS to the accounts of the complainants in complaint Nos.1382 and 1396/2010. OP failed to complete the projects, the complainants demanded for refund of the amount, OP agreed to refund the same within three months. Later OP was absconding for considerable period. The complainants lodged police complaint before the CCB Police and a case was registered against the OP. OP approached the Hon’ble High Court and filed Criminal Petition No.3866/2009, during the pendency of that petition. OP has made some part payments to the complainants. Ultimately the said Criminal Petition was dismissed. OP failed to comply the terms of the agreement deeds and has not rendered proper service. The complainants invested the amount anticipating that they would get the amount monthly to suit their day to day financial needs. Due to the abandonment of scheme, the complainants are left in lurch; OP neither delivered the flat nor refunded the amount. The complainants are entitled for the interest on the amount at the rate of 18% p.a., as the OP had benefit of the same which benefit is deprived to the complainants. The details of the flats and villa booked by each of these complainants, amount paid and the amount refunded and the total amount claimed is noted in the below chart for convenience sake: <br /> <br /> Sl. No. Complaint<br /> No. Flat No. and<br /> Project Name Total Advance amount paid with Date Amount Refunded Total Amount<br /> Claimed with<br /> interest &<br /> compensation<br /> 1 1382/10 A6 – 410<br /> Orange Township Rs.2,00,000 25.12.2008<br /> Rs.40,000 Rs.4,95,000<br /> 2 1387/10 A – 210<br /> Orange Township Rs.4,23,557<br /> (Rs.2,00,000<br /> 28.12.08<br /> Rs.1,99,257<br /> 14.01.09<br /> Rs.24,300<br /> 14.01.09) Rs.40,000 Rs.6,77,857<br /> 3 1392/10 A – 010<br /> Orange Township Rs.3,91,377<br /> (Rs.2,00,000<br /> 04.01.09<br /> Rs.1,91,377<br /> 01.04.09) Rs.40,000 Rs.5,91,377<br /> 4 1393/10 B – 19<br /> Orange Villa Rs.10,00,000<br /> (Rs.10,00,000<br /> 31.12.08) Rs.2,80,000 Rs.13,15,000<br /> 5 1396/10 204 <br /> Orange Township Rs.2,00,000<br /> (Rs.1,50,000<br /> 31.12.08<br /> Rs.50,000<br /> 28.12.08) Rs.40,000 Rs.4,95,000<br /> <br /> 3. The notices issued to the OP by registered post returned as information delivered not claimed. Service held sufficient OP called out absent and placed ex-parte. <br /> <br /> 4. In order to substantiate the complaint averments, the complainants and their power of attorney holders filed affidavit evidences. Arguments heard from complainants side. <br /> <br /> 5. After going through the complaint averments, affidavit evidence of the complainants and their power of attorney holders, the documents produced, it becomes clear that the complainants being lured away with the advertisement and propaganda issued by the OP with regard to schemes “Orange Township” and “Orange Villa” booked flats and villa paid initial advance amount to the OP as shown in the above chart. OP executed agreement deeds agreeing to sell the flats which were to be constructed with an undertaking that the construction would be completed within 18 months from the date of approval of the plan from the competent authorities and deliver possession of the flats within 24 months from the date of approval of the plan. In complaint No.1382/10 and 1396/10 OP has not executed any agreement deeds, but has issued the receipts acknowledging the receipt of advance amount paid through cheques. OP failed to commence the projects, the complainants demanded for refund of the amount, though OP agreed to refund the same within three months, but later he was absconding for considerable period. All these complainants lodged police compliant against the OP, CCB Police registered the case for the offences punishable U/s 406 and 420 IPC. OP challenged the same before the Hon’ble High Court by filing criminal petition No.3866/09. During the pendency of that petition, OP has made part payments; later the said criminal petition was dismissed. When OP was not able to commence the project and could not get the plan approved, it would have been fair enough on his part to refund the amount received from these complainants. There is nothing to discard unchallenged sworn testimony of the complainants. Which find full corroboration with the contents of the undisputed documents produced. The evidence of complainants appears to be very much natural, cogent and consistent. The very fact of OP remaining ex-parte, leads to draw an inference that the complaint averments are admitted by OP. Under these circumstances we are of the view that as the OP has failed to full fill its obligation in completing the project or to refund the advance amount received, the same amounts to deficiency in service and unfair trade practice on the part of the OP. <br /> <br /> 6. The complainants in all these complaints are seeking for refund of the advance amount paid less the amount received by way refund with interest at 18% p.a. and expenses incurred in visiting the office of OP and for compensation. The complainants in complaint No.1383/10 and 1396/10 in addition are also claiming arrears of monthly rentals at the rate of Rs.7,500/-, but there is no any deed of agreement executed by OP agreeing to pay monthly Rs.7,500/- till completion of the project. Therefore the complainants are not entitled for arrears of monthly rental claimed. With regard to claim towards expenses incurred and for compensation and damages; we are of the view that awarding interest at 18% p.a. on the advance amount is to be treated as compensation and expenses. OP by withholding the advance amount received utilized the same for his benefit thereby accrued wrong full gain to himself and caused wrong full loss to the complainants; as such OP is liable to pay interest at the rate of 18% p.a. from the date of respective payments, till the date of realization along with litigation cost. Accordingly we proceed to pass the following: <br /> <br /> O R D E R<br /> <br /> The complaints are allowed in part.<br /> <br /> 1. In complaint No.1382/2010 OP is directed to refund an amount of Rs.1,60,000/- with interest at 18% p.a. from January – 2009 till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.<br /> <br /> 2. In complaint No.1387/2010 OP is directed to refund an amount of Rs.3,83,557/- with interest at 18% p.a. from 15.01.2009 till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.<br /> <br /> 3. In complaint No.1392/2010 OP is directed to refund an amount of Rs.3,51,377/- with interest at 18% p.a. from April – 2009 till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.<br /> <br /> 4. In complaint No.1393/2010 OP is directed to refund an amount of Rs.7,20,000/- with interest at 18% p.a. from January – 2009 till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.<br /> <br /> 5. In complaint No.1396/2010 OP is directed to refund an amount of Rs.1,60,000/- with interest at 18% p.a. from January – 2009 till the date of realization and pay litigation cost of Rs.2,000/- to the complainant.<br /> <br /> OP to comply the order within four weeks from the date of this order. <br /> <br /> This original order shall be kept in the file of the complaint No.1382/2010 and a copy of it shall be placed in other respective files.<br /> <br /> Send the copy of this order to both the parties free of cost.<br /> <br /> (Dictated to the Stenographer and typed in the computer and transcribed by him, verified and corrected, and then pronounced in the Open Court by us on this the 28th day of August 2010.) <br /> <br /> <br /> PRESIDENT<br /> <br /> <br /> MEMBER MEMBER <br /> <br /> Snm:<br />