Realty firm ordered to refund amount, pay penalty

Srikakulam: District consumer disputes redressal commission (DRC) ordered a real estate company on Thursday to return deposit with interest, compensation along with litigation costs to the consumer.

According to the complainant’s Ch Laxmana Rao, an agriculture scientist KVR Murthy deposited Rs4 lakh through two different cheques on two occasions with a real estate firm VV Infra Developers with its main office in Visakhapatnam and branch office in Srikakulam for purchase of a residential house site in its venture at Bheemunipatnamin Visakhapatnam district. But later the real estate firm failed to execute the sale agreement and even after his repeated requests. Vexed with the attitude of the real estate company, the complainant issued legal notice to them but they did not respond.

Finally, the complainant filed a case before the DRC through his advocate. After conducting trial,commission president Raghupatruni Chiranjivi, members GRadhaRani and Ch Shanmukha Rao issued orders against the real estate firm for payment of the deposited amount Rs 4 lakh with nine percent interest within 45 days from the date of orders and the DRC also imposed a penalty of Rs25,000against representatives of the real estate firm. It also directed the representatives the firm to pay another Rs10,000as litigation expenses to the complainant.