Consumer Panel Orders Developer To Pay 6% Interest On Refund Amt, ET RealEstate

October 24, 2023

DEHRADUN: The state consumer commission ordered a Haridwar-based developer of Antriksh NRI City to pay a refundable amount of Rs 3 lakh along with interest of 6% to petitioner Vikas Malik, who had booked a piece of land but later withdrew the deal. The commission was not satisfied with the argument of the developer that it was unable to pay the refund due to Covid-19.

Malik had paid a partial consideration amount of Rs 6.4 lakh to the developer to purchase a plot worth Rs 34 lakh. According to the terms and conditions, “if the allottee is unable to pay the consideration amount and wishes to cancel the allotment, he can submit his desire to cancel the allotment. In such cases, 10% of the sale price of the plot, being the earnest money, will be forfeited and the balance will be refunded without any interest”.

Malik submitted an application to the developer in May 2020, stating that he was not interested in getting the plot allotted and requested cancellation of the booking. He was supposed to get a refund of his deposit as per the company’s norms.

The developer argued that the balance amount could not be refunded due to Covid-19, which the commission refused to accept. It said that during Covid-19 all banks and government institutions remained open and were carrying out transactions for account holders.

“The grounds taken by the developer for not refunding the balance amount due to Covid-19 is not sufficient,” the commission said. The developer was also ordered to pay Rs 10,000 towards litigation charges to the petitioner.

  • Published On Oct 24, 2023 at 09:28 AM IST

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