Ranga Reddy: Venkata Sai Builders ordered to return Rs 1 lakh paid as advance for flat purchase

Hyderabad: District Consumer Disputes Redressal Commission, Ranga Reddy, has directed Venkata Sai Builders and Developers to refund Rs 1 lakh (with 9 per cent interest per annum from September 9, 2022, to till its realisation) to a complainant. It also directed the payment of Rs 10,000 towards the cost of the complaint.

Case details

Modampuri Ranga Raju is a private employee and a resident of Dammaiguda, RR District. To own a flat, he approached the Venkata Sai Builders and Developers after seeing their brochure.

After discussions, Raju entered into an agreement of sale on April 2022, for the purchase of a flat bearing number 502, with a built-up area of 1,220 sq feet with an undivided share of land admeasuring 41.75 sq yards in the ‘Sri Srinivasam’ apartment project.

The project is in plot number 37 west part and 38 west part in survey numbers 472, 474, 475, 487 and 488 on a total measuring 433 square yards at PS Rao Nagar, Phase II, Dammaiguda Village and Municipality.

Raju paid Rs 1 lakh advance

On March 17, 2022, Raju made an online transfer of Rs 1 lakh as advance out of total sale consideration and later entered into an agreement of sale on April 5, 2022, and also got a loan. The complainant due to unforeseen health circumstances was constrained to change his intention to purchase the flat and informed the same to the opposite parties and sought a refund of the entire amount of Rs 1 lakh which was paid in advance.

After Raju repeatedly asked for the refund through phone calls and WhatsApp, the opposite parties agreed to give the refund but did not pay to date on some pretext or the other. Ultimately as there was no response from the opposite parties, the complainant got vexed, and sent a mail on October 2, 2022, seeking a refund.

Venkata Sai Builders didn't before Commission

The lack of response left Raju with mental agony and heavy financial loss to the complainant. Despite receiving notices from this commission, Venkata Sai Builders and Developers remained absent.

After hearing the arguments from Raju, the court noted that, as the opposite party remained absent nor filed any rebuttal evidence to prove their case, the commission is of the considered view that, the complainant is entitled to a refund of the paid advance amount of Rs 1 lakh as he is in dire need of money and also filed medical bills to that extent.

Therefore, the court directed Venkata Sai Builders and Developers to refund the amount of Rs 1 lakh received on April 5, 2022, from the complainant (with 9 per cent interest per annum from September 09, 2022, till its realisation and Rs 10,000 towards litigation cost of the complaint.