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KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
K.B. Sangannanavar, Judicial Member and
M. Divyashree, Lady Member
Biswajeet Rana and Anr. – Complainants
versus
GK Infra Pvt. Ltd. – Opp. Party
CC No.253 of 2016
Decided on 12.11.2024

Advocates:
Counsel for the Parties:
For the Complainants:Smt. Ayantika Mondal, Advocate
For the Opp. Party:Sri. K.T. Dakappa, Advocate

Headnote:

Allotment of villa – Deficiency in service – Refund of amount – Complainants 1 and 2 have failed to prove that loan amount availed was paid or disbursed in favour of OP/builder/developer that too when vendors are not made as parties in this complaint – Question of buy back of property in question do not survive for consideration – Inaction on part of OP/builder to proceed with construction works as agreed even after holding some amount received from complainant has to be held as deficiency in service & is liable to be refund such amount, since complainants have shown amount of Rs.5 lakhs was paid to OP – OP/builder develpoper directed to refund Rs.5 lakhs along with interest 8% p.a. from date of receipts till realisation & pay Rs.50,000/- towards compensation for mental agony & physical inconvenience & Rs. 25,000/- as litigation cost.(Para 5)

Result: Complaint partly allowed.

ORDER

K.B. Sangannanavar, Pri. Dist & Session Judge (R) - Judicial Member.—This is a complaint filed by Complainants.1 & 2 against OP to direct to refund the booking amount of Rs.1 lakh along with interest at 24% p.a. from the date of deposit till realisation.

To buy back the plot no.47 sold to the Complainant in order to construct the villa for an amount of Rs.6,60,000/- + registration charges of Rs.60,000/- and refund the said amount along with interest at 24% p.a. from the date of payment till realisation.

To refund the deposited amount of Rs.4 lakhs with interest at 24% p.a. from the date of deposit till realisation. To refund Rs.2,64,666/- (paid as interest to bank) along with future interest till realisation of the deposited amount. To refund Rs.80,000/- (charged as penalty on home loan); to pay Rs.15,750/- p.m. (loss incurred due to payment of rent) from 01.04.2015 till realisation of the deposited amount; to pay Rs.10 lakhs towards harassment, mental agony and hardship. And to pay Rs.1 lakh towards litigation cost.

2. The facts in brief as stated by Complainants.1 & 2 are stated below:

The OP offered to sale luxurious Spanish villas that they were developing as part of the project under the name of style ‘Anu Felicity’ and as a part of the advertisement campaign, OP published and circulated with colorful brochures both online and offline and in consequence, the Complainants approached OP to buy a villa. They entered into an agreement to purchase of villa for Rs.57,50,000/- on 19.05.2014 and have booked villa no.47 for such price. They have paid Rs.1 lakh on 1.6.2014 through cheque drawn on ICICI bank was encashed on 3.6.2014. Further have paid Rs.2,20,000/- each through DD in favour of T.Muniyappa, T.Thimmara-yappa and T.Ravi drawn on IDBI bank dt.18.9.2014 and have also paid Rs.60,000/- towards miscellaneous expenses. Thus they have paid Rs.7,20,000/-. Further have paid Rs.3,40,000/- each through DD in favour of T.Muniyappa, T.Thimmarayappa and T.Ravi drawn on IDBI bank dt.18.9.2014 As per the assurance and pre-discussion with the OP’s representative Mr.Ashok Gowda, Managing Director. The construction of the villa was supposed to commence from 27.09.2014 and conclude in six months, but OP has not even built the necessary infrastructure for the construction of the villa. Entire project area is barren and is without electricity, pathways, roads and other necessary requirements as required for human habitation. OP had requested for fund assistance from the Complainant in order to commence the construction and believing the words of the OP and without any other alternative have agreed to pay an amount of Rs.4 lakhs in order to get his villa.

Rs.4 lakhs was paid through cheque dtd.29.9.2015 drawn on ICICI bank was encashed on 29.09.2015 itself. However, OP not only has failed to complete construction and delivery within six months has purposefully delayed the project for the reasons best known to them. The home loan availed from IDBI bank was for an amount of Rs.16,80,000/- and they have paid interest amount of Rs.2,64,666/- as on 31.03.2016. The Complainants continued to pay rent of Rs.15,750/- which could have been totally avoided had OP constructed the villa and handed over and delivered as promised. In such circumstances, Complainants with no alternative have approached consumer Commission to direct OP to refund the amount paid towards booking at Rs.1 lakh + 7,20,000/- + 10,20,000/- + 4 lakhs along with interest at 24% p.a. and to pay Rs.2,64,666/- paid as interest to bank, Rs.15,750/- per month for the loss incurred due to payment of rent and to pay compensation of Rs.10 lakhs along with litigation cost of Rs.1 lakh.

3. OP has contested the complaint contending that brochure is not an agreement, however admits Complainants have booked site bearing no.47 on 19.05.2014 for a total sale consideration of Rs.57,50,000/-. OP admits receipt of Rs.1 lakh towards booking of site. Further admits receipt of Rs.2,20,000/- each

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