CHENNAI: A city consumer forum pulled up Tata Value Homes and directed the company to refund Rs 8.9 lakh to a complainant for not refunding him after he had refused to sign a contract that he felt was too ‘one-sided.’ The complainant, Rajkamal Singh R, booked a 2BHK flat in Tata Value Homes’ project ‘Santorini - Spanish Styled Homes’ at Poonamallee near here and made an online payment of Rs 30,000 and subsequently made another payment of Rs 8.6 lakh.
However, Singh allegedly refused to sign the agreement of sale, construction agreement and power of attorney as the contents of documents were ‘one-sided’ and hence ‘prejudicial’ to his interests.
The complainant felt that the clause relating to mortgaging of the property was problematic. The forum agreed with his contention.
“In the said clause 10 (a) (i) the opposite parties/developer reserve their right that in future, if necessary they can mortgage the property which is to be purchased by the purchaser (complainant),” said the District Consumer Redressal Forum, Chennai (North), presided over by president K Jayabalan, on May 15.
“If the opposite parties get the right from the complainant to mortgage his property, he will not have full title in his name. Certainly this clause prejudices the right of the complainant and also establishes an unfair trade practice.”
Further, the forum said the power of attorney was also against the interest of the purchaser.
“The purpose for which the power of attorney is to be executed is solely for execution and registration of cancellation deed in the event of cancellation of allotment of the flat,” Tata Value Homes said.
The company went a step further by arguing that the complainant should have approached a civil court and not the forum. However, the forum dismissed this claim.
“The opposite parties agreed to provide service to the complainant by allotting flat to him after receiving the booking amount,” the forum said. “Hence the complainant is a consumer and the complaint is maintainable in this forum.” The complainant had sought a refund of `10.5 lakh but the forum said there was ‘no pleading or proof’ for the same.
Allegations baseless, says Tata Value Homes
Tata Value Homes, in their defence, said none of the terms and condition of the documents is against the complainant and is prepared only in accordance with law. The company further said that the allegations raised by the complainant were ‘baseless’.