Company informs of disability to proceed after fund transfer
State Consumer Disputes Redressal Commission, Chennai, directed theproperty developer to pay them a compensation of Rs83 lakh including a refund of Rs 72.52 lakh
Chennai: Pulling up a Coimbatore based property developer for failing to construct a flat even after collecting the entire amount in advance from a couple settled in the US, the State Consumer Disputes Redressal Commission, Chennai, directed the company to pay them a compensation of Rs83 lakh including a refund of Rs 72.52 lakh. The petitioners, Sajan Thandaserry and his wife Madhulatha Dharma, now residing at Madison, USA, planned to purchase a flat at Coimbatore. They approached R. Rajaram, managing director of Sri Renga Property Developers Pvt. Ltd., Saibaba Colony, Coimbatore.
They availed a home loan of Rs 40 lakh from ICICI Bank, Coimbatore, and paid an advance amount of Rs 10 lakh to the company in June 2008. Their power of attorney Suraj Tandasserry, Sajan’s elder brother, entered into an agreement with the company in June 2008. As per the construction agreement dated June 21, 2008, the developer proposed to accept the transfer of funds in a phased manner.
However, the ICICI bank released Rs 40 lakh - the entire loan amount to the company even before the laying of the foundation stone. The company was scheduled to complete construction before December 31, 2008, and hand it over to the petitioners, but later informed them of their inability to proceed with the project.The NRI couple filed a petition before the Commission seeking a direction to the company to refund a sum of Rs 74.62 lakh with interest of 18 per cent per annum from August 1, 2008, Rs 9.60 lakh towards loss of rental income from December 2008 and Rs11 lakh for causing mental agony and hardship.
The bench comprising its presiding judicial member J. Jayaram and member P. Bakiyavathi said, “Sri Renga Property Developers cannot shirk their liabilities and responsibilities on a false pretext.” The bench directed the company to refund Rs72.52 lakh to the complainants and pay '10.50 lakh for causing financial loss and mental agony to them.
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