The developer is duty-bound to return the amount paid by buyer when there is delay in execution of the housing project and the buyer is well within his rights to cancel the agreement with the developer when he sees no progress in the project.
This was observed by the 3rd Additional Bangalore District Consumer Disputes Redressal Forum in the two cases against Ittina Properties Limited. “It’s the failure of the company to materialise with the project that has compelled the complainants to move for cancellation of the agreements of sale,” the forum observed.
It further said the company was not in a position to sell and deliver the possession of flats in the near future. “Therefore in the fitness of things, the company should have refunded the amount paid by the complainants at the time of booking,” the forum said.
This observation has been made in the complaints filed by Nilanjan Chakraborti and Dharmesh S. Rao. Mr. Chakraborti and Mr. Rao wanted to buy flats in the proposed Ittina Arni apartments of the Ittina Properties coming up in Hoodi village in K.R. Puram. The two paid Rs. 2.66 lakh and Rs. 2.92 lakh of the total sale consideration of Rs. 26.6 lakh and Rs. 29.19 lakh for booking the flats.
The two signed agreements of sale with the company in January 2007. On its part, the company had agreed to deliver possession of the flats on or before October 2007. Mr. Chakraborti and Mr. Rao had agreed to pay the remaining amount in equitable instalments. When they did not see any material progress in the project, they stopped paying any further amount to the company and sought cancellation of the sale and demanded refund of the booking amount. When the company refused, the two approached the forum.
The company contended before the forum that it could not complete the project as the State Government’s “Akrama/Sakrama” scheme came in the way. It also said disputes have arisen between the landowners and private parties over the title of land on which the apartments were to come up. The company said as complainants have voluntarily terminated the agreements and it can refund by deducting 30 per cent of booking amount.
In the order on August 14, the forum members Subhashini, H.M. Shivalingappa and Srivathasa Kelilaya said there was no justification by the company to retain any portion of the booking amount. They directed the company to refund Rs. 2.66 lakh and Rs. 2.92 lakh respectively with 18 per cent interest from January 20, 2007. They have also asked the company to pay Rs. 10,000 each to the two complainants and to comply with the order within 30 days.
