Building approval declined, firm directed to refund Rs 16 lakh

The complaint was filed by N Thiagarajan, a 79-year-old resident of Saligramam, under Section 12 of the Consumer Protection Act, 1986, after the firm refused to refund the amount. He also alleged that the firm invested his deposit amount in its sister company.

According to the complaint, Thiagarajan entered into a construction agreement with the firm in Salaigramam on July 31, 2017, to purchase and built an apartment near Poonamallee. As per the agreement, Thiagarajan paid a sum of Rs 17.25 lakh out of the total amount of Rs 20.3 lakh for the apartment.

However, the firm later informed him that the project could not be completed because the authorities refused to give the building approval. Hence they converted the money and invested in their sister company called CEE Investments. The firm promised to give Rs 23,000 as interest for next six months.

The petitioner claimed that despite assurance from the firm, he did not receive the money. Subsequently, the firm paid Rs 1 lakh and issued a cheque of Rs 17.25 lakh. But the cheque was returned due to insufficient fund on January 30, 2019.

Recording the submissions, forum president M Mony and member Baskarkumaravel ordered the firm to refund a sum of Rs 16.25 lakh with interest at the rate of 9 per cent, pay compensation of Rs 20, 000 for mental agony, and also cost of Rs 5,000.