Date of filing :24.06.2014.

IN THE TAMIL NADU STATE CONSUMER DISPUTES REDRESSAL COMMISSION, CHENNAI Present: Hon’ble Thiru Justice R.SUBBIAH ...PRESIDENT C.C. No.110 of 2014 Order, dated: 31.12.2025 Farm Grove Srinivasa Nagar Owners & Residents Welfare Association, Rep. by its Secretary-Ramakrishnan, Plot No.188/189, Farm Grove, Srinivasa Nagar, Old Mahabalipuram Road, Padur Village, Kanchipuram District. ... Complainant vs.

1. M/s.Balachandra Builders Pvt. Limited, rep. by its MD – T.Srinivasan, having Office at A5, I floor, No.41, 1st Main Road, Gandhi Nagar, Adyar, Chennai 600 020.

2.Anjaiah, No.3/355, Venkatewara Nagar, AGS Colony Extension, Kottivakkam, Chennai 600 041. ... Opposite Parties.

For Complainant : Mr.Luisal Ramesh For OP No.1 – Mr.S.Udaya Kumar For OP No.2 - Mr.M.Devanathan (Regarding OP-2,Case, given up, vide Memo of the complainant, dt. 10.03.2015 This Complaint came up for final hearing on 30.08.2023 and, after hearing the arguments of the counsels for the contesting parties and perusing the materials on record and having stood over for consideration till this day, this Commission passes the following:-

O R D E R

R.Subbiah, J. President .

–

Alleging that the 1st OP, in collusion with the 2nd OP, despite receiving charges for development, failed to provide the facilities and common amenities in the farms/plots sold to its members as promised under the Development and Sale Agreements, thereby committing a deficiency in service, the complainant-Association has filed the present complaint, seeking enforcement of contractual obligations, payment of compensation and other consequential reliefs.

2. In brief, the case of the complainant is as follows:-

The complainant, a registered society under the Tamil Nadu Registration Act vide Certificate No.77106, dated 04.12.2006, was formed with the object of protecting the interests of its members, who are the plot owners of Srinivasa Nagar which was promoted by the 1st OP, and the association has been functioning since 2006. The second OP acted as Secretary of the association till 31.03.2012 and, after he ceased to hold the said office, certain fraudulent acts committed by him came to light and, while discussing the same in the Annual General Meeting held on 15.12.2013, service deficiencies committed by the 1st OP were also deliberated upon and, ultimately, a unanimous resolution was passed authorizing the Secretary of the Association to initiate appropriate legal action against both OPs.

The 1st opposite party promoted the project in the year 1995 consisting of 500 plots each measuring 25 cents which were developed as farm plots with 27 trees of a mix of 12 Teak, 10 Coconut and 5 Mango. Apart from the sale consideration, the 1st OP had collected a sum of Rs.50,000/- from each plot owner towards development charges for creating infrastructural facilities in the layout as listed in Schedule-B of the Agreement for Development viz., properly laid farm sites, gravel-topped roads, a sufficient number of wells, planting & maintenance of 27 trees for each plot, drip irrigation facilities, a common children’s play area, a common swimming pool, security arrangements, individual water outlets for each farm site and adequate street lighting. As per clause-2 of the agreement, the 1st OP was obligated to complete all such developmental works on or before 30.09.1996. But, at the time of handing over possession of the farm lands, the 1st OP failed to provide several essential facilities including the swimming pool, children’s play area, wells, internal roads, street lighting and recreation club, and it is specifically stipulated in the agreement that, in the event of failure to hand over the developed farm lands within the stipulated period, the developer shall be liable to pay compensation at the rate of Rs.1000/- per month from the scheduled date of handing over until completion in all respects, and the agreement being irrevocable, the obligations of the 1st OP are continuing in nature and th