Forum asks realtor to pay compensation
The children were enrolled in the scheme when they came to participate in a cultural event on the occasion of children's day in 2009.
Chennai: Pulling up a realtor for duping children in an EMI scheme, the District Consumer Disputes Redressal Forum, Chennai (North) has directed him to pay fine of Rs 1.63 lakh for not handing over plot despite receiving the full payment.
The children were enrolled in the scheme when they came to participate in a cultural event on the occasion of children’s day in 2009.
Two minor petitioners represented by their father G. Gopalakrishnan of Selaiyur submitted that D. Singaraja, Managing Director, Kamaraj Educational Development Trust, Koyambedu, organised a competition on November 14, 2009 at Annai Anjugam Ammaiyar Thirumana Mandapam at Kodambakkam, Chennai, on the eve of children day. He took his two children to participate in the programme.
On reaching at the venue, he came to know that the function was arranged to promote real estate business. Singaraja, who was also MD of Bhoomathi Real Estates, enrolled his two children as members in an EMI scheme to purchase plot and paid Rs 18,000 for each of them. In another scheme, he paid '22,000 for four other accounts.
After making the payments, realtor had not allotted any plot to him. After a delay of five years again Singaraja demanded Rs 30,000 for service, land development, site visit and registration charges. In the petition, they sought direction to Singaraja to pay compensation for causing mental agony. In his reply Singaraja said the petitioner was satisfied with the scheme and he was also given two gold coins for both the accounts.
He never visited the site and not chosen the plot. The petitioner breached the agreement by not paying the necessary charges and also discontinued paying instalments, Singaraja said adding that he had not committed deficiency in service. The bench of president, K. Jayabalan and member T. Kalaiyarasi said, “It is crystal clear that though the realtor received full payment in three instalments, he failed to allot any plot to him”.
Singaraja did not keep up the promise and further utilised funds collected from the public to develop the business for his welfare. The bench directed Singaraja to refund Rs 58,000 and also to pay him compensation of '1 lakh for causing mental agony and cost of Rs 5,000 in six weeks.