Real estate company ordered to refund Rs 5.18 lakh to customer

Hyderabad: The Hyderabad District Consumer Disputes Redressal Commission-I has ordered Incredible India Projects Private Limited, a city-based realtor, to refund Rs 5.18 lakh to a de facto complainant for not developing the site and selling the property without obtaining mandatory approvals.

The de facto complainant K.L.V. Prasad, a Secunderabad resident, approached the Consumer Rights Organisation (CRO)/Uphokta Adhikar Sangthan to file a petition against the city-based realtor for selling two plots without approvals from the relevant authorities. Vikas Pandey, CRO (president AP chapter, in-charge president for Telangana chapter), informed the Commission that the client had paid Rs 12,000 as an initial payment for the purchase of two plots measuring 150 square yards each at Rs 3,999 per square yard in survey No. 801/P in Raigir Village, Bhongir Mandal, Nalgonda district.

The realtor agreed to sell the plots in monthly payments. Subsequently, K.L.V. Prasad had paid Rs 2,59,250 (pass book No. 0868) and Rs 2, 59,250 (pass book No. 1415) between November 8, 2015 and April 29, 2017.

Further, contrary to Incredible India Projects Private's managing director's claims, the de facto complainant discovered that the layout had not been approved by the HMDA, TTDA, or DTCP. “As per the oral agreement on November 8, 2015, the opposing party has agreed to develop the site and hand it over by the end of August, 2019. When the realtor failed to develop the site and obtain approval from the relevant authorities, the de facto-complainant requested a refund from. However, the opposing party failed to refund the money,” Vikas Pandey stated.

However, the city-based realtor claimed that K.L.V. Prasad paid Rs 2,59,250 out of a total cost of Rs 5,99,850 for each plot, which is less than half the price. The de facto complainant was late in making payments and had stopped making payments on April 29, 2017.

After hearing arguments, the Commission ordered the opposing party to refund the customer Rs 5.18 lakh, pay compensation of Rs 10,000, and pay litigation costs of Rs 5,000.