‘Parsvnath cannot deduct 5% deposit as purchase price’

Kathuria served a legal notice to the firm for refund of the Rs 10.98 lakh. After the firm did not do the needful,he approached the Chandigarh Consumer Disputes Redressal Forum.

After going through the complaint,the Forum directed the firm to refund Rs 10.98 lakh along with interest at the current SBI Term Deposit rate from the respective date of deposits till its refund. The Forum also directed the firm to pay Rs 50,000 to the complainant as compensation and Rs 5,000 as litigation cost.

The firm appealed against this order with the Chandigarh Consumer Disputes Redressal Commission and requested that the Forum’s order be set aside.

While adjudicating in the case,Commission Presiding Member Jagroop Singh Mahal and Member Neena Sandhu observed that if construction is not started at a housing project,the buyers cannot be penalised for it. The Commission further held that if the buyers ask for a refund of their deposit,“no such deduction of 5 per cent can be made”.

The Commission categorically stated that the firm cannot benefit from their own wrongs and punish the buyers. It also stated that in addition to the refund of the total deposit,the firm cannot evade its liability to pay interest on the total amount deposited by the buyer.