Legend Horizon told to refund consumer

THE FORUM noted that the pleas by Legend Horizon were contradictory as Ms Sobha Rani did not need to give a cancellation deed for cancelling the booking, when there was no agreement signed.

Legend Horizon Constructions in Somajiguda faced trouble at the Hyderabad Consumer Forum when Ms G. Sobha Rani, a resident of Ranga Reddy district, established her claim that the company did not refund her booking amount after she cancelled the purchase of a flat for personal reasons.

Ms Sobha Rani said she had booked a 1,837-sq.ft flat at Attapur on September 9, 2014, for which she paid the advance of `2 lakh. The builder did not issue an acknowledgment nor any instruction for further payments.

She cancelled the booking subsequently for personal reasons for which she sent a letter on December 12, 2014, and sought a refund as per the agreed terms and conditions. These stated that whenever a party chooses to cancel the booking, 10 per cent of the paid-up amount would be forfeited towards cancellation charges and the balance refunded within 90 days.

Legend Horizon Constructions ignored the complainant’s cancellation letter and did not send a refund of the advance. After it ignored three of her letters, Ms Sobha Rani personally went to the office and demanded a refund but she was threatened.

The builder contended that the complaint was liable to be dismissed as it was filed for recovery of amount and not for deficiency of service. It stated that Ms Sobha Rani had approached the builder upon learning its vast reputation. After the payment of the advance, the company had approached Ms Sobha Rani for further payment several times, but she ignored them. She also failed to issue a discharge voucher and cancellation deed without which the refund was not possible, the company said.

The forum noted that the pleas by Legend Horizon were contradictory as Ms Sobha Rani did not need to give a cancellation deed for cancelling the booking, when there was no agreement signed.

The forum stated: “The opposite parties dragged the matter as long as possible with a view to enjoy the hard earned money of the complainant for wrongful gain, which amounts to deficiency of service on their part for which they are liable.”

The forum ruled in favour of Ms Sobha Rani and directed Legend Horizon Constructions to pay an amount of `1.8 lakh with interest of 12 per cent per annum from March 11, 2015, and `10,000 towards costs.