BENGALURU: A consumer forum in the city has ordered a building developer to pay Rs 3.68 lakh as damages to a resident for failure to hand over the flat as promised in the agreement of sale.
In its recent order, the Bangalore Urban 2nd Additional District Consumer Disputes Redressal Forum has directed SS Properties, a partnership firm, to pay Rs 12,83,500 to U M Lokesh.
It includes a refund of the advance of Rs 9 lakh, liquidated damages of Rs 3,68,500, compensation of Rs 10,000 and litigation cost of Rs 5,000.
The forum comprising president K S Bilagi and Members Balakrishna V Masali and V Anuradha said that the complainant is entitled to 10 per cent amount as liquidated damages as the agreement of sale of the flat is for Rs 36,48,950.
According to the order, SS Properties in Hanumanthanagar had received Rs 9 lakh advance from Lokesh, resident of Vajrahalli, off Kanakapura Road, between April and June 2016, for a flat in second floor of the apartment called "SS Vrudhi' at Thalaghattapura.
According to the agreement, the developer had to complete the construction by the end of December 2016. However, the project was not completed and the complainant had moved the forum against the developer.
In a reply filed before the forum, the developer admitted to the advance received from the complainant but contended that the latter was not entitled for the relief as he had failed to pay the remaining amount.
The developer, however, failed to produce any material mentioning the date on which the complainant was
supposed to pay the balance amount.
Pointing this out, the forum said that the occupancy certificate was issued by the BBMP on November 16, 2017.
It clearly indicated that the developer had failed to complete the construction on or before December 2016, as per the agreement, the forum noted.