The commission has issued non-bailable warrants against Tejinder Singh Bhatia of Sukhm Infrastructures Private Limited.
CHANDIGARH: The UT Consumer Disputes Redressal Commission has sentenced a managing director (MD) of a real estate firm to a three-year jail term and a fine of Rs 10,000 each in two cases for failing to comply with its orders on December 12, 2015.
The commission has issued non-bailable warrants against Tejinder Singh Bhatia of Sukhm Infrastructures Private Limited, Chandigarh, for his arrest and production before the commission on July 25 to undergo the sentence.
In an unprecedented move, the commission has also convicted the company and imposed a fine of Rs 10,000 each on it, to be paid separately.
Ashok Kumar Jain of Kalka had filed a complaint alleging the company floated a scheme for allotment of residential/IT/ITES/industrial plots under the name, “YellowStone Landmark Infocity”, at Sector 66A, Mohali. The complainant booked IT/industrial plot of 400 square yards by depositing Rs 3.7 lakh and Rs 8.14 lakh on January 5, 2011. The company also issued the allotment letter dated January 5, 2011, for the plot for a basic price of Rs 29.60 lakh.
Pankaj Chandgothia, counsel for the complainant, contended that the development was to be completed and possession offered within 18 months, otherwise a penalty of Rs 12 per square yard per month was to be given.
Even the buyer’s agreement did not contain the plot number, which amounts to unfair trade practice, said Chandgothia. He pointed out that the builders have indulged in unfair trade practice, from the very start, as they have taken huge sums of money even though there was no concrete scheme or licence or land available with the company for the intended project. Such pre-launch offers and bookings do not stand the scrutiny of law, legal validity or any sanctity.
The complaint was allowed vide orders dated December 12, 2015 on the basis of compromise statement of Bhatia. According to the orders, the company was to pay Rs 30.14 lakh along with interest @12% per annum plus Rs 50,000 as compensation. The total amount of around Rs 50 lakh was to be paid in four equal monthly instalments, the first of which was to be paid on or before March 10, 2016 by a demand draft.
The orders said in case of failure to comply, the amount deposited by the complainants would be returned with interest @15% per annum plus compensation of Rs 3 lakh.
The company in its reply stated that the income tax department had seized the account of the company due to which no payment could be made. The commission in its order noted that the company did not produce any such order. The commission headed by Justice Jasbir Singh said that the company is taking false pleas to defeat the rights of the complainants.
The commission also held that for the default of the company, its directors can be held personally liable. Similar orders were also passed in case of Manbir Singh Sethi of Sector 19 D, Chandigarh.