Meanwhile, it directed the firm to pay an interest rate of seven per cent for a one year tenure on the amount of Rs 25 lakh, which the complainant had paid
Suburban Mumbai district's additional consumer dispute redressal forum has pulled up a Goregaon-based real estate developer who failed to pay interest rate on the cancelled booking amount, while returning the amount to the complainant. The developer had utilised the amount for a year's time.
The forum thus asked the developer to pay an amount of Rs 20 lakh to the complainant for causing the family mental agony. Meanwhile, it directed the firm to pay an interest rate of seven per cent for a one year tenure on the amount of Rs 25 lakh, which the complainant had paid.
The forum's order copy reads that the complainant, Rajiv Krishnan, resident of Chembur, had booked a flat worth Rs 80 lakh with Ayyappa Constructions in the year 2009, and had paid the amout for the flat in two instalments.
However, on realising that construction work had not been initiated in a years time, he cancelled the agreement and sought a refund.
The firm, in November 2010 paid the money back, however, didn't pay the interest amount, rather utilised the money for a year's time and later gave it back. The complainant had sought for the interest rate amount, but the firm did not pay any heed.
Thus a complaint was filed before the forum, which sought a reply from the firm. The firm held that the cancellation of the agreement was solely the Complainant's decision.
"The firm alleged that the relationship between the complainant and the opposite party ceased to exist as terms of the commercial contract was going to end," read the firm's reply.
The forum, after going through its evidence held that the firm is bound to pay back the seven per cent interest rate on the amount, which the firm utilised for a years time, thus directing to pay a yearly interest with seven interest rate to the complainant on both the amounts.
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