PUNE: The district consumer forum has ordered a construction firm to refund Rs four lakh after it had unilaterally cancelled the agreement with a customer for purchasing a flat.
Sahebrao Narke and his son Sandeep, both residents of Katraj, had filed the complaint against M/s Sugandh Tara joint venture between M/s Sweety Associates, Nana Peth and M/s Gayatri Developers, Dhankawadi.
As per the complaint, in 2010 the developer was constructing a residential building ‘Sugandh Tara Heights’ at survey no.83 in Katraj. The complainants wanted to buy a flat worth Rs 14.22 lakh and had already paid Rs four lakh for various charges and taxes. An agreement was signed in 2011. However, the construction of the building was stopped due to the notice of the Pune Municipal Corporation (PMC), for a period of 18 months.
The complainants were intending to pay the balance consideration by obtaining a loan. However, the builder did not initiate any action for the loan transaction. On November 30, 2012, the builder issued a notice through an advocate and cancelled the agreement unilaterally.
“The builder wanted to sell the flat to another person for higher profit. The cancellation of the agreement amounts to deficiency in service,” they submitted before the forum.
On the other hand, the builder submitted that the complainants did not pay VAT and service tax as demanded on the total cost of the flat. “A cheque of Rs four lakh was issued but it was not encashed by the complainants,” the builder submitted.
They also produced the occupancy certificate to prove that the construction of the building is complete in all respects.
The forum ordered both the builders to refund Rs four lakh to the complainants with nine per cent interest since 2015.