Hyderabad District consumer forum orders Sahiti Infratec to refund Rs 39 lakhs to a buyer

Hyderabad: Hyderabad District Consumer Redressal Commission ordered Sahiti Infratec Ventures India Pvt. Ltd. and its representative E. Bhaskar Naidu to refund Rs. 39.75 lakhs with 12% interest to an IT professional who invested in their housing project in Ameenpur, Sangareddy District.

Going further into details, the complainant in the month of February 2021 bought a flat on the 24th floor of Tower 10 in the infra firm’s project. The property was to be built on a 23 gunta plot in Ameenpur Village.

According to the complainant, in 2021 he paid an amount of Rs. 39,75,750 to the firm and executed a Memorandum of Understanding in favour of the complainant in the presence of witnesses. Despite receiving full payment in January 2021 and the MOU in February, the developers haven’t progressed on construction. The complainant has repeatedly asked the firm to execute the Sale Deed, but they keep dodging. After receiving Rs. 39,75,750, they have ignored the complainant and his calls, not executing the Sale Deed. The agreement stipulated a completion timeline of three years with an additional six-month grace period.

Upon investigation, the complainant discovered that the developer hadn’t started Tower No. 10, where his flat was supposed to be located. With the completion deadline approaching in August 2024 and no signs of development, the complainant, having lost interest in continuing the purchase as agreed in the MOU. He approached the consumer commission seeking compensation and other reliefs.

The commission noted that the developer showed a “negligent attitude” by failing to appear before the commission to explain the construction delays. Further, the commission observed that, “The negligent attitude of the Opposite parties shows their evasive nature, amounting to unfair trade practice and deficiency in service. In the given context, we are of considered opinion that they deliberately committed deficiency in service.”

In its ruling, the commission ordered the firm to refund the full amount of Rs. 39,75,750 with 12% annual interest calculated from the date of the MOU. Additionally, they must pay Rs. 50,000 as compensation for mental agony and Rs. 5,000 towards legal costs. Further the firm have been given 45 days to comply with the order. The commission held both Sahiti Infratec Ventures India Pvt. Ltd. and E. Bhaskar Naidu jointly and severally liable for the payments.