The State Consumer Commission has directed Mulund-based Nirmal Lifestyle Ltd to refund ₹22 lakh with interest to two homebuyers. The Gurgaon-based complainants had booked a flat when they were working in Mumbai in 2014 but did not get it.
Nirmal had asked buyers to cancel their booking
Nirmal had asked the buyers to cancel their booking and seek refund, stating that buyers did not have money to give and that they would not even get interest for the amount they had paid. However, no refund was given and the commission held that the complainants were entitled for a further compensation of ₹5.5 lakh for mental agony and litigation cost they had to suffer.
The order was passed on a complaint by Gurgaon-based Rakhee Prasand and Vivek Srivastava against Nirmal Lifestyle Ltd (through its managing director Dharmesh Jain).
Complainants paid booking amount 9 years ago
Nine years ago, the complainants were working in Mumbai and were in search of a residential accommodation and came to know about ‘Panorama’, a Nirmal project in Mulund. They booked a flat measuring 410 sqft on the 14th floor and paid ₹5 lakh as booking amount. Over a period of time, they paid ₹22 lakh as demanded by Nirmal and got a receipt. The total consideration of the flat was ₹75.37 lakh.
When they sought to know a definite timeline for entering into an agreement, progress in the construction, completion and actual possession, they did not get any clear response. Fed up with the callous attitude and evasive replies, they visited the site in October 2015 and were surprised to see that no construction had begun. They were still hopeful of getting the flat.
Complainants were informed of indefinite delay in 2016
In March 2016, they were informed of an indefinite delay and were encouraged to cancel the booking and claim refund. A pre-typed form with three options was sent to them seeking signature. The first option stated that the complainants were unable to pay the remaining amount so wanted to cancel the booking and that the refund will be available after the flat is sold by the complainant. The second stated that the opponent is entitled to retain 4% of total consideration value as cancellation charges and all damages suffered in sale of flat to a new purchaser. The third stated that no claim will be raised, including interest, on delay of refund or any right in favour of the flat to another person.
Commission points out deficiency in Nrimal's service
When the complainants did not get the refund in reasonable time, they sent a legal notice in February 2017. Nirmal contended that the buyers were not consumers as they had booked the flat for investment and that the commission is not a recovery forum to hear the case.
The commission stated that Nirmal accepted more than 20% but did not give agreement which is deficiency in service. It added that having the aforementioned clauses amounted to unfair trade practices.
