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Thane realty firm pulled up for not entering into legal contract, fined Rs1 Lakh

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The Thane district's consumer dispute redressal forum recently pulled up a Thane-based realty firm, Siddhi Developers, for failing to hand over the possession of two shops, which a consumer had booked after paying almost 90% of the total cost of the commercial space.

The forum thus ordered the firm to accept the remaining amount from the complainant and accordingly, to hand over the possession of the space and its legal documents to the consumer. Additionally, the firm was also directed to pay a fine of Rs1 lakh to the complainant for the mental agony which he had to undergo from 2011.

As per Thane resident Hansaram Chaudhri, he had booked two shops with the firm's project and thus, entered into a verbal deal with the firm. According to the deal, the total space of 368 sq ft was purchased for a sum of Rs14,75,500. However, the firm had not entered into any legal contract with the complainant, but the deal was entirely on the basis of verbal communication and assurances.

By September 2011, the complainant had paid Rs11,75,500 to the firm. The complaint copy reads: "The complainant kept on asking the developer to enter into a legal contract, but the firm kept on ignoring it."

In June 2012, after waiting for almost 9 months, the complainant finally issued a legal notice to the firm, asking them to enter into a legal contract and accordingly, hand over the possession of the space. The firm still did not pay heed to the notice.

Aggrieved by the firm's behaviour, the complainant approached the forum in July 2013 and filed a complaint. After going through the complainant's version, the forum asked the firm to file its reply, but the firm once again, did not bother to respond.

In its order, the forum held that it was clear from the bank statements that the complainant had paid a majority of the amount to the firm. However, since the firm did not hand over the possession of the shop, it was clear that the firm must have used the money for its own purpose.

After accepting the money, it was the firm's duty to enter into a legal contract with the consumer. Failing to do so, has resulted in negligence in providing the required services to its consumer.

The forum's order further maintained: "The forum thus directs the firm to accept the remaining amount of Rs3 lakh from the complainant and hand over the legal contract papers of the said deal. The firm is also directed to hand over the possession of the space to the complainant."

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