Builder awarded jail term for failing to refund buyer's money

The managing director of a real estate firm has been awarded one-and-a half-year imprisonment by a district consumer forum for failing to comply with its four-year-old direction to pay over Rs 10 lakh to a buyer.

New Delhi District Consumer Disputes Redressal Forum awarded the punishment to Madhu Singh, the Managing Director of AJS Builders Ltd Promoters and Developers, on an execution petition filed by a South Delhi resident, Rajesh Bhardwaj, for recovery of the amount.

"Keeping in view overall facts and circumstances of the case, we direct Madhu Singh, the director/managing director of the company to undergo simple imprisonment for a period of one and a half years," the forum's bench headed by S K Sarvaria said.
 

However, if the amount, along with the interest and compensation, is paid by the builder, she would be entitled to be released from jail forthwith, it said.

In its 2013 order, the forum had directed the company to refund Rs 9.85 lakh to Bhardwaj, along with interest and a compensation of Rs 50,000.

However, the forum noted that the payment was not made to Bhardwaj by the firm and the liability was increasing every month due to the interest factor.

Bhardwaj had moved the forum claiming that he had already suffered a lot and was being harassed unnecessarily by prolonging execution petition.

In her reply, Singh told the forum that her company was "sick, inactive and is in liquidation and neither she, nor her company, is presently able to make payment and maybe after a few months time, they would be able to make payment after sale of the property."

Singh is already in custody in a different case.