Panel directs builder firm to refund customer who didn't get promised flat
THIRUVANANTHAPURAM: The Kerala State Consumer Disputes Redressal Commission has directed a builder company to give full refund and compensation to a customer who did not get the promised apartment.
The commission rejected the company's argument citing insolvency proceedings before the National Company Law Tribunal (NCLT).
The complainant, a Thiruvananthapuram native, had booked a 3-bedroom apartment in a project proposed at Karakulam village in the district. The total cost was Rs 55,17,277. As per the agreement, construction had to be completed within 18 months from the date of agreement i.e., March 18, 2017.
Though the complainant paid Rs 43,00,123, the work was not carried out by the builder. The builder also did not respond to the communications sent by him.
The complainant had availed a housing loan of Rs 41 lakh at 8.5 per cent rate of interest from the Punjab National Bank Housing Finance.
The former managing director of the company filed an affidavit before the SCDRC along with the order passed by the NCLT Kochi branch. He cited that the NCLT has appointed an Insolvency Resolution Professional and they are incapacitated in participating in the proceedings of the company.
The SCDRC bench comprising its president Justice B Sudheendra Kumar, judicial member Ajith Kumar D and member KR Radhakrishnan heard the case. Advocates Ponnan Alex and Sreevaraham NG Mahesh appeared for the petitioner.
The commission, however, observed that Section 3 of the Consumer Protection Act, stipulates that an aggrieved consumer can approach the Consumer Disputes Redressal Commission in addition to the existing remedies.
Proceedings pending before the NCLT is not a bar for the complainant to approach the commission for redressal of grievances, it said.
The commission found deficiency in service on the part of the builder. It directed the company to refund Rs 43 lakh with 9 per cent interest besides Rs 3 lakh as compensation and Rs 20,000 for litigation costs.
Case file
Apartment project at Karakulam in Thiruvananthapuram
Consumer paid Rs 43 lakh
He availed a housing loan for Rs 41 lakh @ 8.5 pc interest
Builder failed to deliver apartment
Commission's direction to builder firm
Refund Rs 43 lakh at 9 per cent interest
Rs 3 lakh compensation
Rs 20,000 as litigation costs
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
13 minutes ago
- India.com
RBI Cuts Repo Rate: Major Banks Slash Lending Rates; Know Objective Behind It
RBI Repo Rate Cut: In a bid to boost economic momentum, several major banks have followed the Reserve Bank of India's (RBI) lead after it cut the repo rate by 50 basis points. Among them, Punjab National Bank (PNB), Bank of India, and UCO Bank have announced reductions in their lending rates. The RBI's move is aimed at making borrowing easier and more affordable for both individuals and businesses. Wasting no time, Punjab National Bank was quick to respond, bringing down its repo-linked lending rate from 8.85% to 8.35%, setting the tone for others to follow. Bank of India Repo Rate: Bank of India responded to the RBI's repo rate cut by lowering its repo-linked lending rate from 8.85% to 8.35%, as disclosed in a stock exchange filing. However, the bank chose to keep its base rate and marginal cost of funds-based lending rate (MCLR) unchanged. UCO Bank Reduces MCLR Across All Loan Tenures Taking a slightly different path, UCO Bank opted to reduce its MCLR by 10 basis points across all loan tenures. This move, effective from June 10, aims to ease borrowing costs for various types of loans, including home and personal loans. Specifically, UCO Bank trimmed its overnight MCLR from 8.25% to 8.15%, the one-month rate from 8.45% to 8.35%, and the three-month rate from 8.6% to 8.5%. The six-month and one-year MCLRs were also adjusted to 8.8% and 9%, respectively. Bank of Baroda Repo Rate: Adding to the trend, Bank of Baroda announced a 50 basis point cut in its repo-linked lending rates for select loan tenures. These rate revisions follow the RBI's latest decision—announced by the Monetary Policy Committee led by Governor Sanjay Malhotra—to lower the repo rate, the key policy rate at which the central bank lends to commercial banks. The broader goal: to ease borrowing costs and stimulate economic activity. Objective Behind Cut In Repo Rate The objective behind the rate cut is to energise the economy by encouraging spending and investment through cheaper loans. In addition to the repo rate cut, the RBI also reduced the Cash Reserve Ratio (CRR) by 100 basis points, from 4 per cent to 3 per cent. Repo Rate Reduction In Four Phases This reduction will be rolled out in four phases and is expected to inject Rs 2.5 lakh crore of liquidity into the banking system. The CRR is the portion of bank deposits that must be maintained with the RBI, and lowering it allows banks to lend more. (With Inputs From IANS)
Time of India
14 minutes ago
- Time of India
Chhattisgarh high court declines to intervene in tata projects and CHiPS bank guarantee dispute
RAIPUR: The Chhattisgarh high court disposed of a writ petition filed by Tata Projects Limited, directing the company to seek remedy before the Commercial Court. The petition concerned the encashment of a performance bank guarantee of Rs 167.46 crore by the Chhattisgarh Infotech Promotion Society (CHiPS), the nodal agency for driving IT growth and implementing IT and e-Governance initiatives in the state. A division bench of Justice Narendra Kumar Vyas and Justice Amitendra Kishore Prasad heard the petition filed by Tata Projects. The company sought restoration of the status quo ante, asking for the return of the Rs 167.46 crore to State Bank of India and the issuance of an identical bank guarantee. Alternatively, Tata Projects requested CHiPS to deposit the amount in an interest-bearing account until the dispute's resolution. According to court records, CHiPS issued a Request for Proposal (RFP) for the selection of a Master System Integrator (MSI) for the BharatNet Phase-II Project in Chhattisgarh. A dispute arose between Tata Projects and CHiPS during the commercial contract. Previously, Tata Projects filed a writ petition, in which a single bench of the high court on 2 July 2024, granted interim protection, restraining respondents from encashing the performance bank guarantee. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo This writ petition was later disposed of on 30 April 2025, with the court re-delegating the parties to approach the Commercial Court. Subsequently, Tata Projects filed an application under Section 9 of the Arbitration and Conciliation Act, 1996. The Commercial Court, on 3 May 2025, ordered an interim status quo regarding the invocation of the bank guarantee. However, after the respondents filed their reply, the Commercial Court disposed of the application on 6 May 2025, vacating the status quo order. The initiation of the bank guarantee encashment process led Tata Projects to approach the highcourt. Senior Counsel Kishore Bhaduri, appearing for Tata Projects, argued that CHiPS's conduct was fraudulent and high-handed, misleading the court and misusing its power by attempting to invoke the bank guarantee. Counsel for the respondents and the state argued that the writ petition was not maintainable, as Tata Projects had remedies available under Section 9 of the Arbitration and Conciliation Act, 1996, or under the Chhattisgarh Madhyashtham Adhikaran Act, 1983. The high court observed that an arbitration clause existed in the agreement and that Tata Projects already approached the Commercial Court. The court ruled that the writ petition was not maintainable at this juncture. However, it granted Tata Projects the liberty to pursue statutory remedies before the Commercial Court. The court also clarified that the respondents were free to raise objections regarding the maintainability of any application. The high court directed the Commercial Court to consider and decide any interim application or application under Section 9 of the Arbitration and Conciliation Act, 1996, filed by the petitioner expeditiously and in accordance with the law. The high court also made it clear that it did not express any opinion on the merits of the case, leaving it to the Commercial Court to decide independently.
Time of India
18 minutes ago
- Time of India
Mohandas Pai flags lack of domestic capital for Indian startups; urges policy overhaul; calls for stronger R&D support
NEW DELHI: Indian startups are struggling to grow due to limited domestic investment and restrictive government regulations, warned industry veteran and Aarin Capital Chairman Mohandas Pai, calling for urgent policy reforms and increased R&D funding to boost the ecosystem. He cautioned that despite India's position as the world's third-largest startup ecosystem, the nation could lose ground in global innovation if existing issues remain unresolved. "We have 1,65,000 registered startups, 22,000 are funded. They created USD 600 billion in value. We got 121 unicorns, maybe 250-300 soonicorns," Pai said in an interview to PTI. "The biggest issue for startups is the lack of adequate capital. For example, China invested USD 835 billion in startups and ventures between 2014 and 2024, US invested USD 2.32 trillion. We just put in USD 160 billion, out of which possibly 80 per cent came from overseas. So local capital is not coming in," he added. He further highlighted that while American insurance firms and university endowments significantly fund startups, Indian regulations prevent endowments from such investments, and insurance companies remain uninvolved due to incomplete regulatory framework. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bu bankalar başvuran herkese kredi kartı veriyor mu? Kredi Kart Şimdi Keşfet Undo He recommended regulatory adjustments to enable insurance companies' participation in fund-of-funds and suggested increasing the government's fund-of-funds programme from Rs 10,000 crore to Rs 50,000 crore. Additionally, he noted that India's pension funds, holding Rs 40-45 lakh crore, cannot invest in startups due to conservative policies and regulatory restrictions. Pai emphasised the need to increase research funding in Indian universities substantially and urged organisations like DRDO to share their technologies with the private sector. He indicated that current research expenditure in public universities falls considerably short of global standards. "We need to remove barriers for startups to sell business to the government and public sector though the government has reformed it, it doesn't work in actual practice. It must be opened up, and I think that has to be a mind shift," the industry veteran continued. Pai further criticised the prevailing business culture in India, stating that, "The problem in India is that all the big companies try to beat down the small startups and give them less money, and force them to sell the technologies and use them, and often don't pay them on time.' "This culture of hurting the small people should change," Pai added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
