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The Hindu
The Hindu
National
The Hindu Bureau

State Consumer Commission dismisses complaint for refund against realty firm

The Telangana State Consumer Disputes Redressal Commission (TSCDRC) set aside an order of a district consumer commission that directed a real estate company to refund payments made for two plots of land on the grounds that the complainant had filed a complaint after over 2,300 days and was barred by limitation.

The TSCDRC, comprising In-charge president Meena Ramanathan and member (Judicial) K Ranga Rao, was dealing with an appeal filed by Janaharsha Estates N Constructions. The respondent was B Ramchander Reddy.

Previously, the District Consumer Disputes Redressal Commission - I, Hyderabad, directed the real estate company to refund payments made with an interest calculated at 18% per annum, pay compensation of ₹25,000 and costs of ₹10,000.

Mr Reddy had applied for membership in the real estate company’s scheme of developing housing plots for sale. He paid ₹3.04 lakh for two plots of 120 square yards each. The scheme was in force from March 2008 and the last payment was made in August 2010.

The TSCDRC noted that Mr Reddy could not make payments after August 2010 and sought a refund, but no evidence was filed in the regard. The TSCDRC underscored that the payments were not made regularly.

The district commission, the TSCDRC stated, failed to take into consideration that Mr Reddy approached them after several years, and pointed out that the Consumer Protection Act lays down a period of limitation to file a complaint. An abnormal delay in filing the complaint must be substantiated. The TSCDRC also stated that a “delay of 2,381 days cannot be condoned.”

Setting aside orders of the district commission, the TSCDRC dismissed the complaint Mr Reddy had filed.

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