Consumer Forum Orders Builder to Pay Rs 5 Lakh for Construction Defects
Hyderabad District Consumer Disputes Redressal Commission-I has ordered SG Developers and the landowners of Sai Ganga Residency to jointly pay Rs 5 lakh in compensation to a resident, Gottam Purna Reddy, for deficiencies in service and unfair trade practices, and Rs 10,000 as litigation costs
Hyderabad: The Hyderabad District Consumer Disputes Redressal Commission-I has ordered SG Developers and the landowners of Sai Ganga Residency to jointly pay Rs 5 lakh in compensation to a resident, Gottam Purna Reddy, for deficiencies in service and unfair trade practices, and Rs 10,000 as litigation costs.
According to the complaint, which was filed on November 15, 2023, a lot of construction defects came up within two years after Purna Reddy took possession of Flat No. 301 in Sai Ganga Residency. These included continuous waterlogging in the cellar, regular leakage of pipes, cracks in the ground floor and compound wall, damaged parking tiles, and poor construction quality.
While the developers tried to blame the careless digging in an adjacent plot as the cause for some damage, the commission, presided over by president B. Uma Venkata Subba Lakshmi and C. Lakshmi Prasanna, member, found the builders accountable.
The commission identified structural vulnerability of the building and the absence of a structural stability certificate to support their claim of high-quality construction. The commission said that the existence of such major issues shortly after construction pointed to the use of poor quality materials and poor construction, showing a clear deficiency in service.
While the complainant had sought a full refund of Rs 13.2 lakh, the commission found this unjustifiable as the flat was registered in his name. Instead, it ordered compensation for the loss and mental agony.
Telangana Real Estate Regulatory Authority (RERA) chairperson, also named as an opposite party, was not held responsible, though the complainant had sought the developer to obtain RERA certification. The developers and landowners have been given 45 days to comply with the order, in case of failure, the compensation amount will also include an interest of nine per cent per annum.