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September 2, 2011

Parsvanath developers told to refund Rs 10.42 lakh


Chandigarh, September 2
The Chandigarh District Consumer Disputes Redressal Forum has asked Parsvanath Developers Limited to refund Rs 10.42 lakh deposited by a complainant as earnest money for allotment of a flat in the controversial Prideasia project.Delivering directions on the application of a Jaipur resident, the forum comprising president PD Goel and members Rajinder Singh Gill and Madanjit Kaur Sahota also directed the developer to pay 15 per cent interest per annum on the amount along with Rs 25,000 towards the
litigation cost.
“It’s a classic case where a consumer is being duped from all angles. The developer had been enjoying the benefit of the amount deposited by the complainant. They are not paying him any interest on the said amount and are not raising construction over the site. The developers are not in a position to handover the possession of the flat to him and when he asked for the refund of the amount, they are deducting half of the amount. The entire episode took place due to the unfair trade practice adopted by the developer in collecting the money, without getting any clearance from the authorities and without ascertaining the title to the land. The developers, therefore, cannot be permitted to take the benefit of their own wrongs and get richer at the expense of the buyers,” observed the forum.
The complainant, Ajay Kumar, a resident of Jaipur, applied for a residential flat with Parsvanath Developers Limited and deposited Rs 10.42 lakh as earnest money along with the application form. However, the developer failed to make any development at the site and the complainant sought cancellation of the allotment and refund of the earnest money along with interest.
Parsvanath Developers Limited, however, pleaded that if the complainant wanted the refund, he had to apply for the cancellation of the allotment and in that eventuality Rs 5,90,750, the five per cent of the basic price of the flat would be forfeited.

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