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Housing construction' is a consumer service: Court

The Forum granted relief to a flat buyer, asking the builder to return part of the sale consideration to the tune of Rs 6 lakh.

Hyderabad: The Ranga Reddy District Consumer Disputes Redressal Forum on Friday struck down the argument of a builder that “housing construction” would not come under consumer service. The Forum granted relief to a flat buyer, asking the builder to return part of the sale consideration to the tune of Rs 6 lakh.

The buyer, G. Srikantha, wife of D.G. Shankar, a government employee and resident of Saraswathinagar Colony in Alwal had filed a complaint against builder P.V. Prasada Rao of Vasavinagar Colony in Old Alwal. In the complaint it was stated that she had agreed to purchase a flat for Rs 22,44,000 lakh and had paid '6 lakh. But when she applied for a house loan, she had came to know that the building construction was not in accordance with the approved plan. She had thus requested the builder to refund the amount.

The builder claimed that the civil court should decide the matter and the forum had no jurisdiction to try the case. He alleged that there was no violation and the complainant had failed to pay the balance sale consideration and that he had sold flat to others who had got loans from ICICI Bank. He alleged that the sale agreement was void and not binding.

The forum observed the term “housing construction” was included as one of the services as defined U/S 2 (O) of the Consumer Protection Act by way of amendment in 1993. The forum found deficiency in service of the builder and asked him to refund Rs 6 lakh with interest.

( Source : Deccan Chronicle. )
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