The Ernakulam District Consumer Disputes Redressal Commission has slapped Galaxy Homes Private Limited with a fine of ₹2.85 lakh on charge of attempting to cheat a customer by promising to sell a flat without the requisite permit.
The Commission comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N. issued the verdict on a complaint by Jeko Antony of Vyttila under Section 35 of the Consumer Protection Act.
The complainant had booked a two-bedroom apartment in a project by the opposite party and paid a booking fee of ₹25,000 on June 8, 2017, followed by a deposit of ₹7 lakh. The complainant said he was made to believe that the company had all the valid permits for the construction of nine floors, and that he could avail a bank loan.
However, it turned out that the company had no building permit for the eighth floor, and hence the loan application of the complainant’s son was rejected. The revised building permit for the eighth floor was issued to the opposite party on February 27, 2019 after the receipt of the advance amount. The company had returned ₹5 lakh in multiple instalments but did not pay the remaining ₹2.25 lakh, the complainant claimed.
The Commission observed that the opposite party’s conscious failure to file a written version of its stand amounted to admission of allegations levelled against them.
“Flat buyers are entitled to compensation for delayed handing over of possession and for the failure of the developer to fulfil the representations made to flat buyers in regard to the provision of amenities,” the Commission quoted from a Supreme Court verdict.
The Commission observed that the opposite parties had inadequately performed the service as contracted with the complainant and hence there was a deficiency in service, negligence, and failure on the part of the opposite parties in providing the desired service which in turn had caused the customer mental agony, hardship, and financial loss.
Subsequently, the Commission ordered the opposite party to pay the complainant ₹2.25 lakh at an interest rate of 9.50% from August 1, 2017 till the date of realisation. Another ₹50,000 shall be paid towards compensation for failing to provide services despite accepting an advance and ₹10,000 towards the cost of proceedings.
