On a complaint filed by Consumer Education and Research Society (CERS), Ahmedabad, the Gujarat State Consumer Disputes Redressal Commission has ordered Rajiv M. Sutaria, a builder, to refund Rs. 8 lakh with 9 per cent interest from the date of deposit in 1996 to Shakuntala V. Thakore within six weeks.

In 1996 Shakuntala had joined a housing scheme named Shardul at Ahmedabad, promoted by Rajiv. She had paid and Rajiv had received Rs 8 lakh by cheque, for Rs 4 lakh each, on 2 November and 9 December 1996. She was allotted a flat at the proposed building which, however, could not be built and the scheme was abandoned. An ad hoc payment of Rs. 50,000 was made to Shakuntala.

It was agreed that the Rs 8 lakh would be refunded with 18 per cent interest from the date of receipt till the date of the agreement. But later the builder claimed that the amounts collected by him from other purchasers of flats at ‘Shardul’ were being utilised for the purchase of land. If he could raise funds, he would mark out the plots and build bungalows on them for sale. Otherwise, he would sell the plots and, on realisation of the sale price, refund the amounts due to Shakuntala and others not interested in the plots.

The builder failed to pay Rs 8 lakh with interest. Shakuntala approached CERS and they jointly filed a complaint to the State Commission. According to them, the amount due to her from the builder totalled Rs 8 lakh as principal and Rs. 6,02,451 as interest due up to 31 May 2001, after deducting Rs. 50,000. They also prayed future interest at the rate of 18 per cent per annum from 1 June 2001 till payment, Rs 10,000 for her harassment and mental agony by way of compensation, Rs 10,000 each to her and CERS as costs, and any other relief that the State Commission would deem fit.

The State Commission, while issuing its order, added that the amount of Rs. 50,000 refunded to Shakuntala would be adjusted against the amount payable to her. It passed no order on costs.

The opposite party has appealed to the National Consumer Disputes Redressal Commission, New Delhi. The respondents too have filed an execution application with the National Commission seeking compliance of the State Commission’s order by the builder.

Mr. Justice M. S. Parikh, President of the Gujarat State Consumer Disputes Redressal Commission, and Dr. M. K. Joshi, Member, formed the quorum. Mr. V. H. Thakore, Advocate, represented the complainants and Mr. A. O. Chudgar, Advocate, represented the opposite party.

 

Date : 17/06/2003

Editor : Pritee Shah
INSIGHT — The Consumer Magazine
Place : Ahmedabad

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CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Ahmedabad-Gandhinagar Highway,
Ahmedabad-380 054 (INDIA)
Phone : 079 - 7489945-46, Fax : 079 - 7489947,
E-mail: cerc@wilnetonline.net, Web Site: http://www.cercindia.org