Parsvnath Developers Ltd has been directed by a consumer forum here to pay over Rs 13 lakh to a Delhi-based firm, holding that it collected money from people under "false temptation and misrepresentation" and victimised thousands of consumers "financially" and mentally."
New Delhi District Consumer Disputes Redressal Forum asked Parsvnath Developers to pay Rs 13,10,615 to Telexcell Information Systems Ltd and said it was a case of deficiency and unfair trade practices.
The firm had filed the complaint, saying that it had booked a flat with the construction company in October 2007, but even after three years it failed to construct the project.
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"At the same time the construction company also assured the complainant to complete the project as soon as possible which proves a case of deficiency and unfair trade practices on the part of the Opposite Party which collected money(while) neither sanction of project (was there) nor any sanctioned site, just to collect money from the complainant under false temptation and misrepresentation," the forum, presided by C K Chaturvedi, said.
It also noted that the real-estate developer misused the complainant's hard earned money for its own use without any fear for a number of years, while the firm has been wandering from pillar to post but all efforts were in vain and it remained silent with folded hands helplessly for justice.
"The approach of Opposite Party (OP) is totally malafide, consequently, thousands of consumers are financially, physically and mentally victimized by it.
"OP is directed to refund Rs 12,00,615...We also award Rs one lakh as compensation for harassment and Rs 10,000 as litigation charges," the forum, also comprising members S R Chaudhary and Ritu Garodia, said.
The firm had told the forum that it had booked a flat with the construction company with a sum of Rs 12,00,615.
However, at a later stage the firm came to know that the project as well as site plan had not been approved by the competent authority. The complainant then served a legal notice to the construction company and later filed the complaint with the consumer forum.
The construction company in its written statement to the forum said that in case of delay, the complainant would be entitled for compensation of Rs 5 per sq.Ft.