Hyderabad Consumer Forum orders Prathishta Properties to pay Rs. 8.8 lakh for delayed land registration
Hyderabad: The District Consumer Disputes Redressal Commission-III, Hyderabad, has directed Prathishta Properties to refund a total of Rs. 8,70,000 to the complainant, along with interest and compensation, for its failure to deliver on its promises regarding land registration.
In this case, Garikipati Venkata Ramanjaneyulu, a private employee from Hyderabad, entered into a Memorandum of Understanding (MOU) with the real estate company in 2022. The deal involved purchasing a 150-square-yard plot under a pre-launch offer at Rs. 5,800 per square yard in the limits of Venkatapur village, Sadasivapet Mandal, Sangareddy District.
The complainant made several payments amounting to Rs. 8,70,000, expecting the registration of the property within seven months, as assured by the company. However, despite multiple follow-ups, the company failed to deliver the land or initiate the registration process.
According to the complainant, Garikipati Venkata Ramanjaneyulu explained that he was contacted by the opposite party, Prathishta Properties, through its agents, who claimed to represent a reputed real estate business. They informed the complainant about a pre-launch offer for a venture in the limits of Venkatapur village, Sadasivapet Mandal, Sangareddy District.
The company represented that the price of Rs. 5,800 per square yard was a special offer and that prices would rise significantly once the project received approvals. Attracted by this lucrative offer, the complainant agreed to purchase a plot measuring 150 square yards at the aforementioned rate and made the payments.
Despite the payments, the company failed to honour its promise of completing the registration within the stipulated seven months. The complainant repeatedly followed up with the company, but each time he was met with evasions and delays.
The complainant's repeated efforts to reach the company were unsuccessful, with no clear answers provided. In December 2022, after being informed that the registration process was delayed, the complainant continued to contact the company, but each attempt to get a status update was ignored. Even after March 2024, when the company assured him that either the registration would be completed or his money would be refunded, there was no further communication.
Furthermore, the company failed to accept official notice from the Commission, further showing its lack of accountability and disregard for the legal process.
Commission’s Findings and Orders:
After reviewing the evidence and considering the absence of a defense from Prathishta Properties, the District Consumer Disputes Redressal Commission-III concluded that the company's actions constituted unfair trade practices and deficient services under the Consumer Protection Act, 2019.
The Commission ordered the company to refund the full amount of Rs. 8,70,000 to the complainant, Garikipati Venkata Ramanjaneyulu, along with interest at the rate of 12% per annum, calculated from the date of the last payment until the amount is fully realised.
Additionally, the Commission recognised the mental agony and financial loss suffered by the complainant due to the company’s failure to fulfill its promises. As compensation for this distress, the Commission directed Prathishta Properties to pay Rs. 1,00,000 to the complainant.
Furthermore, the Commission also ordered the company to cover the legal expenses incurred by the complainant, amounting to Rs. 10,000. The company has been given a deadline of 45 days from the receipt of the order to comply. Failure to comply within this timeframe will result in further legal action.
