HYDERABAD: The Ranga Reddy district consumer disputes redressal commission has favored consumers in two distinct real estate cases — one concerning delayed flat possession and another about promised returns on land-linked investments. Refunds and compensations were mandated in both instances.
In the initial case, Rajitha Guduru from Bachupalli paid Rs 25 lakh in installments to a real estate company engaged in land ventures in Warangal. Despite receiving certificates that assured monthly returns on “undivided land shares,” no payments were made.
Rajitha stated that she was never informed about the land’s location or provided with adequate documentation. Despite her continual inquiries, the company neither refunded her funds nor responded to her concerns. She also claimed to have assisted the firm by bringing in others for their chit fund schemes.
The company contended that Rajitha failed to finalize the transaction or comply with exit procedures, asserting that other referenced companies were uninvolved. However, the commission determined that the certificates lacked crucial details like location and transaction terms.
Finding the firm guilty of misleading behaviors, the commission ordered a refund of Rs 25 lakh with an annual interest of 9%, in addition to Rs 50,000 for emotional distress and Rs 10,000 for legal expenses. The other firms associated were exonerated.
In the second case, N Gayathri and her spouse N Rajasekhar Reddy lodged a complaint after two developers failed to deliver a flat in Narsingi. The couple had already paid Rs 36.9 lakh of the total Rs 68 lakh following a sale agreement signed in January 2022. Despite this, the developers neither completed the flat nor responded to legal notices.
With the developers absent during the hearing, the commission ruled to proceed in their absence, ordering them to hand over the flat within three months upon acceptance of the remaining payment. They were also instructed to compensate Rs 50,000 and cover Rs 10,000 in litigation costs.
These rulings demonstrate the increasing accountability of builders and investment firms by consumer courts for delays, misrepresentations, and insufficient transparency in real estate dealings.
