CHENNAI: A district consumer forum has directed a property developer to provide a compensation of Rs 8.3 lakh to a city resident after the real estate firm kept delaying the construction of an apartment and also revised the price of the property despite accepting an advance of Rs 10 lakh. CJ Siva Shankar, a resident of Adambakkam, in a petition submitted to the forum, said that he had seen an advertisement put out by Ambojini Property Developers Pvt. Ltd on its new project at Taramani and entered into an agreement with the firm to purchase a 1,176-sq foot apartment at a cost of Rs 76 lakh on October 29, 2012. He had also paid an advance of Rs 5 lakh on the same day.
In December 2013, he again paid Rs 5 lakh, taking the total advance amount to Rs 10 lakh. On February 14, 2014, the property developer issued a modified booking form showing the total cost of the flat measuring 1,259 sq. ft as Rs 84.08 lakh.
As the construction was yet to take off and Shankar was also not satisfied with the company, he sent an email to the firm seeking cancellation of booking and refund of the advance. After sending several reminders, the construction firm paid him Rs 2 lakh.
Siva Shankar sent several legal notices to the company, but in vain. He then filed a petition at District Consumer Disputes Redressal Forum, Chennai (South), seeking compensation of Rs 15 lakh from the firm.
Considering the oral and documentary evidence, the forum, presided by M Mony and comprising R Baskar Kumaravel, observed that the construction firm, after filing written version, had failed to file a proof affidavit on the contentions raised in the written version for a long time and also had not started the construction within the stipulated time.
This proves deficiency in service, the forum said. The forum directed the construction firm to provide a sum of Rs 8 lakh collected as booking advance along Rs 20,000 towards compensation for mental agony with the cost of Rs 10,000 to the complainant.
Allegations denied
Denying the allegations, the construction firm told the forum that the complainant had been duly informed that the project was going on in full swing and all necessary approvals were sought before beginning the construction.
If the complainant desired to cancel the booking, the advance amount would be refunded once the flat is sold to another person.