Consumer forum slaps 2 cr penalty on Emaar Group

Consumer forum slaps 2 cr penalty on Emaar Group

THE HANS INDIA |   Aug 03,2017 , 05:38 AM IST

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Hyderabad: The Telangana State Consumer Disputes Redressal Forum (TSCDRF) slapped a penalty of nearly Rs 2 crore on Emaar Hills Township, Emaar MGF (Private construction agencies) here on Wednesday in a common order issued in the two cases for not completing the construction works of flats within the stipulated period.  

It may be recalled that the Emaar Group gave wide publicity for sale of flats and villas in the ‘Boulder Hills Excelsior Project’. In this connection, customers like Sweenie Reddy, P Radhive Reddy,  Prabhakar Solipuram  and  Veena  were  misguided by the  advertisement  as Andhra Pradesh Industrial Infrastructure Corporation Ltd  (APIIC) was fully involved in the said project. 

They fully trusted the APIIC.  They separately paid an amount of Rs. 6,57,029 as advance for purchase of the flat.   The Emaar MGF issued a letter on October, 17, 2008 allotting a flat measuring 2612.62 square feet for a sum of Rs. 1,31,40,576 along with two car parking areas. The complainants paid an amount of Rs. 98,45,270 for this. 

However, Sweenie Reddy, P. Radhive Reddy, Prabhakar Solipuram and Veena told  the Disputes Redressal Forum that the private construction agencies stopped  construction activity with  a mala-fide intention though they received a major part of the sale amount. 

In their complaint, they said that in spite of the fact that several representations were made to start the construction work, the builders behaved in a high-handed manner and challenged the complainants to approach any court of law.  

In the case of Sweenie Reddy and P Radhive Reddy, the Forum directed the private construction agencies to pay Rs. 98,45,270 within one month and a compensation package of Rs. 25,000 also covering the legal costs of Rs. 10,000.  

Similarly, in the case of Prabhakar Solipuram and Veena, the Forum headed by B N Rao Nalla, president, State Consumer Forum and member Patil Vithal Rao directed Emaar Hills Township Pvt. Ltd and Emaar MGF Land Ltd to pay Rs. 95,64,225 and awarded a compensation of Rs. 25,000 including Rs. 10,000 as legal costs.