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Refund amount to flat allottee, forum tells firm

Wed, Feb 18, 2009

Chandigarh Property

The allottee said he was forced to cancel his flat booking owing to change in layout by the builders without intimation

HOLDING SMV Agencies Private Limited, Jaipuria Group Real Estate Division, deficient in services, the UT Consumer Disputes Redressal Forum has directed them to refund Rs 3.92 lakh along with 12 per cent interest to the allottee who was forced to cancel his flat booking owing to change in layout by the builders without any intimation.

Mukat Bihari Jain, a resident of Sector 48, Chandigarh, had approached the consumer forum alleging deficiency in services on the part of SMV Agencies Private Limited and had sought refund of the money deposited by him for booking a flat consisting of drawing-cum-dining room and three bedrooms.

In his complaint, Jain maintained that he had deposited Rs 3.92 lakh on September 3, 2006, while booking the flat and was assured that he would get its possession within two years of allotment.

He stated that he was allotted a flat but later, without any information or his consent, SMV Agencies changed the earlier layout/site plan of the other and failed to do the needful, alleged Jain.

SMV Agencies, however, denied any deficiency in services and contested the complaint. “Since the project was at the concept stage, it was made clear to Jain that all building plans, specifications and layout plans were tentative and subject to variations and modifications by the company or the competent authority sanctioning the plants.” SMV Agencies said this information was even men project as was shown at the time of booking. Moreover, following inquiries conducted by the complainant, it was revealed that the requisite licence from the Pollution Control Board for the building project was also not obtained.

He decided to cancel his booking and requested refund of the amount deposited by him, but SMV Agencies dillydallied on one pretext or the tioned in the brochure, adding that as per the terms and conditions of the allotment letter, they were entitled to forfeit 10 per cent of the basic price of the unit. They maintained that they had offered refund to Jain after deducting 10 per cent on the booking amount but he had declined to accept it and demanded full refund.

Disagreeing with the argument of SMV Agencies that as per the agreement between the parties they were free to modify the layout plan in view of the terms and conditions, the president, consumer forum, Jagroop Singh Mahal, said, “These terms and conditions were drafted by them later to justify the changes made by them unilaterally . These are not signed by the complainant and, therefore, cannot bind him nor would these authorise SMV Agencies to change the layout plan.” Mahal, while directing SMV to refund the entire amount, said they had no right to deduct anything from the total price or of the earnest money .

The forum held that the interest of 12 per cent per annum on Rs 3.92 lakh would be paid from September 2006 till its actual payment to the complainant.

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