Hyderabad: Consumer panel orders EVK Projects to refund Rs 11.95 lakhs advance for undelivered property

Hyderabad: Real estate firm EVK Projects based in Jubilee Hills was directed to pay Rs 11.95 lakhs for not delivering property to a customer at Kollur despite collecting a substantial amount.

The firm had allegedly collected Rs 16.95 lakhs from the complainant but only paid back Rs 5 lakhs after stating its inability to deliver the project.

The District Consumer Disputes Redressal Commission-III here has ordered the refund of the balance along with an annual interest of 9 per cent to the complainant.

K Amulya, a private employee and a resident of Padma Rao Nagar Colony in Secunderabad, signed a deal with the representatives from the EVK Projects Pvt. Ltd. on December 11, 2021, for the purchase of a flat in Kollur, Ramachandrapuram Mandal, Medak District.

The property is a west-facing 3BHK in C-Block, 15th floor, at Rs 2,800 per square foot, totalling 1,780 square feet, with a total sale consideration of Rs 49,84,000. The firm received a sum of Rs 15 lakhs from Amulya on October 28, 2021, as an advance and issued receipts for the same.

EVK Projects had agreed to pay back the advance

However, EVK Projects, which is owned by Guntapalli Srinivasa Rao, was unable to deliver the agreed property and informed the same to the customer. The firm agreed to pay back the advance with a nominal interest, bringing the total refund to Rs 16.95 lakhs.

Accordingly, three cheques were issued by EVK Projects – two cheques for Rs 5 lakhs each and another for Rs 6.95 lakhs. When the first cheque dated December 12, 2022, was dishonoured on December 13, 2022, it was brought to the attention of the firm.

EVK Projects then transferred Rs 5 lakhs to Amulya’s bank account; Rs 3 lakhs on December 23, 2022 and Rs 2 lakhs on January 6, 2023, from an account named ‘GSR Infra Group Pvt Ltd’. However, an amount of Rs 6.95 lakhs remained due as of January 6, 2023, as mentioned under the cheques.

EVK Projects at the time of issuing the cheques assured Amulya that funds would be arranged and that the cheques would be honoured on the due dates.

The customer sends legal notice

However, to date, the customer has only received Rs 5 lakhs from the total payable Rs 16.95 lakhs, leaving Rs 11.95 lakhs due. Two cheques amounting to Rs 11.95 lakhs were subsequently dishonoured due to insufficient funds and remain unpaid.

Amulya issued a legal notice, demanding the firm to pay the remaining amount within 15 days of receipt of the legal notice, failing which, Amulya would initiate legal proceedings under Section 138 of the NI Act.

Despite receiving the notice, EVK Projects did not respond, forcing Amulya to approach the consumer forum. Srinivasa Rao also failed to appear before the forum or file a written version.

After hearing the arguments, the consumer forum stated that the firm ‘exhibited a severe degree of negligence.’ “The opposite party’s (EVK Projects) negligence and laid-back attitude towards the consumer necessitated the intervention of the commission,” the forum said.

The forum ruled that the breach of contract by EVK Projects has resulted in deliberate financial loss to Amulya.

“In view of the above findings and discussions, we conclude that, despite Amulya having paid substantial amounts for the purchase of the flat, EVK Projects failed to either execute the sale deed or refund the agreed balance amount to her. This failure constitutes not only a deficiency in service but also an unfair trade practice on the part of EVK Projects,” the forum ruled and ordered the firm to refund Rs 11.95 lakhs to the customer, as agreed upon earlier.

The firm was also ordered to pay Rs 30,000 for the complainant’s mental agony and Rs 1,000 towards litigation costs.