Developer took advance by lying and returned after 6 months
We booked a plot 6 months ago in Bangalore on a written confirmation form the builder stating that we would be allowed to put a fence in our plot for privacy. This was the only reason why we booked the plot, we gave a big advance of about 23 lakhs and after sometime we saw the agreement from the builder stating we cannot put any fence. We were disappointed and went back to the builder, after several months of ping pong the builder (sales MD) told us over the phone that they have reviewed our case and cannot allow putting a fence. They returned the advance money but we incurred a significant loss of lawyer fees for reviewing papers and a major interest income loss as it would have been in FD in our bank otherwise. The builder said their representative gave us false confirmation initially while taking advance and they cannot allow a fence.
I would like to understand if there is any possibility of getting some refund of interest loss (almost 70-80k)?
Asked 2 years ago in Property Law from Singapore
1) you are lucky that builder refunded your money of Rs 23 lakhs without you having to go to court .
2) make representation to builder to pay at least bank rate of interest on advance paid by you .
3) going to court/ consumer forum would be an expensive proposition as you would have to have to incur litigation costs
4) it takes around 2 years for cases to be disposed of before consumer forum
You have the remedy to file a lawsuit for recovery of money which you spent on availing the services of your lawyer along with compensation from the builder for breach of promise. It was unwise in the first instance to have agreed to pay the advance unless and until the agreement was reduced to writing and signed by both parties. The builder is bound by the promise made by his representative as the representative is deemed to have acted for and on behalf of the builder.
Since you have received back the amount from the builder you can issue a legal notice asking him to pay interest on the amount paid by you for the plot for the period the builder held the money uptill payment made to you, if he agrees to pay alright, otherwise you can file a consumer complaint against the builder and his representative for unfair trade practices and deficiency of service, you will be entitled to get compensation as well as damages for the loss caused to you in this transaction.
1. Yes, if you have irrefutable evidence that yu were initially confirmed that you can put a fence around your plot which has been denied later on, then you can file a complaint case before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming the interest on the amount refunded, damage and cost,
2. Engage a local lawyer having expertise in this field.
You can first issue a legal notice to the builder to compensate the loss for the amount they have received as advance on the promises made and later on when they refused to keep up their promise, they returned the money cancelling the booking at your request. However they are held liable for the expenses ( you may quote them one by one) that incurred due to this venture and also loss of interest for six months for the amount lying idle with them.
If they do not respond or comply with your demand, you may drag the builder to consumer forum with a complaint about the breach of contract or promise due to which you were made to suffer loss of money, time and energy and seek monetary compensation due to the mental agony you suffered
Hi, it is nothing but a cheating you have to lodge a Complaint in the consumer forum for deficiency of service.
2. First you have to issue a legal notice and then you can file a complaint in the consumer forum.
Thank you all lawyers for the valuable advice!
Just to add, how difficult would it be to send a notice or handle a case remotely since I don't reside in India? Will it require frequent travel or can a lawyer represent me and drive it?
Thanks a lot once again!
Asked 2 years ago
the consumer complaint can be filed in your absence and your presence would not be required even for a single hearing.
all that is needed would be the vakalatnama to be duly signed and sent by you to your advocate who can then proceed to file it on your behalf here in Bangalore.
1) you can furnish your instructions and lawyer will draft and file case on your behalf
2) you need to appoint constituted attorney preferably a family member to attend court on your behalf
3) yiur presence would be required only Curial evidence stage
Hi, in consumer Court your presence is not required you can manage through Advocate.
After having served him with a legal notice you may drag him to consumer forum for enforcing your demand as well as for other reliefs.
For conducting the case in the court, your presence may not be required on each and every court dates of hearing in your case. Your advocate shall take care of your case in your absence. You may be in touch with your advocate so that he does not miss the dates owing to his busy schedules.
1. You can execute a POA from Singapore in favour of any body in India including your lawyer to deal with your case and register the said POA before the Indian Consulate at Singapore,
2. Your POA holder can send the notice,file the consumer case and attend the hearings also with or without a lawyer (in consumer forum) for which you wont have to bother,
3. Consumer cases are disposed of much faster than regular cases filed before the Civil Courts.
It is going to be a civil proceeding in which the parties are not required to appear personally in the court except on their witness deposition. On all other hearings the presence of your lawyer alone in the court shall suffice.