Magicbricks Realty asked to pay Rs 12,000 to Hyderabad resident for faulty service

Hyderabad: District Consumer Disputes Redressal Commission-I, Hyderabad has directed Magicbricks Realty Services Ltd to pay Rs 12000 to a Hyderabad resident for faulty service.

It includes Rs 6,000 refund, Rs 3,000 as compensation, and Rs 3,000 as costs.

Case details

Sameer Tummalagunta, a resident of Thirumalgherry in Hyderabad had taken a premium membership (including relationship manager (RM) service) of Rs 12,000 from Magic Bricks Realty Services Ltd. On November 24, 2023, Magic Bricks Realty Services Ltd sent a mail to Sameer that the RM of their company would give the best outcome of the service about posting for selling off his property between November 24, 2023, and February 12, 2024.

Magic Bricks failed to honor all services promised to Sameer

Although Magic Bricks Realty Services Ltd assured him that their RM would take care of all the calls from buyers to sell his property, Sameer did not receive any of the services they assured him. The property description was updated after sending the legal notice to Magic Bricks Realty Services Ltd. On the other hand, except for receiving one or two services, Sameer did not receive the listed services promised by Magic Bricks Realty Services Ltd when buying the membership. Therefore, he contacted the company representatives and escalated the issue.

Despite several communications with the representatives of Magic Bricks Realty Services Ltd to either resolve the issue or refund the amount, the company did not give a proper reply. It is further averred that Magic Bricks Realty Services did not provide proper service and the same caused mental agony and stress to Sameer. Despite paying the full amount by Sameer, Magic Bricks Realty Services Ltd failed to provide the assured services. With no option left, Sameer filed the complaint to the Commission seeking justice.

Magic Bricks didn't respond to legal notice

Even after receiving the notice from the Commission on March 3, 2024, representatives of Magic Bricks Realty Services Ltd did not appear before the Commission. They even failed to file a response within the time prescribed under the Consumer Protection Act, 2019. Hence, the right to file a written version of Magic Bricks Realty Services Ltd was forfeited vide docket proceedings on April 15, 2024, and the proceedings were conducted in the absence of Magic Bricks Realty Services Ltd.

After going through the document evidence submitted by Sameer, the Commission noted that Magic Bricks Realty Services Ltd did not contact him to give the status of the response of selling his property (as assured by them). Apart from that, Magic Bricks Realty Services Ltd had not given correct information within the timelines to Sameer as assured to him when taking the payment and then shirking away from the responsibility/liability by saying that they never offered any guarantee or warranty that there would be a satisfactory response or any response at all from the buyers certainly amounts to unfair trade practice.

Therefore, the Commission also noted that not contacting Sameer once a week to give the status of the response amounts to a deficiency in service. Also retaining the amounts paid by Sameer for services not rendered by Magic Bricks Realty Services Ltd amounts to commission of deficiency of service and adoption of unfair trade practice. Hence, Sameer is entitled to a refund of Rs 6,000 part of the amount paid by him from Magic Bricks Realty Services Ltd and Rs 3,000 as a refund, and another Rs 3,000 towards costs to Sameer.