Developer fined for not delivering flat

NT Correspondent

Bengaluru: A Consumer Commission in Bengaluru has imposed a fine of Rs1 lakh on a property developer after it failed to deliver the promised apartment to a buyer within the stipulated time frame. The developer 'Dreamz Infra India Pvt.Ltd' was also asked to return the advance payment of Rs10,25,000 paid by the consumer with 12 per cent interest per annum. A further Rs10,000 was awarded to the consumer to cover his litigation expenses.

"Eventhough the complainant has paid an advance amount of Rs10,25,000 on the date of entering into the Memorandum of Understanding out of the sale consideration of Rs 20,50,000, the Opposite Party (OP) has played fraud on the complainant and not yet started the project. The OP has also given false assurance to the complainant stating that she will return the advance amount if the complainant filed the cancellation letter and return all the original documents,” the District Consumer Dispute Redressal Commission said in its judgment. The complaint was filed by one Ranjeet Sharma, from Meerut, Uttar Pradesh. Disha Choudary is the MD of Dreamz Infra while Sachin Naik was the founderm chairman.

Sharma had booked a 3 BHK flat the company had advertised it was building in Doddabanenahalli, Bengaluru east taluk. Sharma paid Rs10,25,000 as advance for the Rs 20,50,000 flat measuring 1450 sq ft. The project named Dreamz Swadhya was however never commenced.

“When the OP did not start the project the complainant started enquiring about the delay in starting the project. The OP and her staff were postponing the same by giving one or the other reason and they did not start the project till date. On the request and instruction of OP the complainant filed the cancellation and returned all the original documents to the OP,” the Commission’s order notes. The Complaint alleged deficiency of service by the builder.

“It is further the g rievance of the complainant that time and again he approached the OP and all efforts went in vain, finally the OP is not available in the office at Koramangala and other branches all over Bangalore and have not refunded the advance amount. The OP from the inception had no intention to develop the project and is involved in unfair trade practice and there is clear deficiency in the service offered by the OP,” it stated.

Sharma filed a police complaint at the Madiwala police station as well. The Commission, in its order on April 24, held that there was deficiency of service and Sharma was entitled for compensation.

It said, “The complainant has given the cancellation letter with all original documents to the OP. After collecting all the original documents with a cancellation letter the OP closed their office and left Bangalore. In Spite of lodging a complaint before the Madiwala Police, the OP has neither returned the amount nor formed any layout as per their proposal and thereby committed deficiency of service, unfair trade practice. Therefore the complainant is entitled for the relief claimed in this complaint.”