Realtor fined for undue charges, harassment

Sanjeev Singh Bariana

Tribune News Service

Chandigarh, June 6

In a strong message to builders taking investors for a ride with false promises, the Punjab State Consumer Disputes Redressal Commission has ordered TDI Infratech Limited (formerly Taneja Developers & Infrastructure Ltd) to refund illegally charged amounts on at least five questionable accounts to seven complainants.

The “unjustified” charges were levied on account of VAT, service tax, external development charges, car parking and club membership varying between Rs 2.24 lakh and Rs 6.50 lakh for flats in its project Wellington Heights, TDI City, Mohali.

Allowing 9 per cent interest on the amount, wherever applicable, president of the commission Justice Paramjeet Singh Dhaliwal (retd) also ordered the builder to pay Rs 50,000 each for mental harassment to the complainants.

Justice Dhaliwal said the demand for VAT was unjustified because applicants had not purchased any material for building rather a built-up apartment. Fee charged for car parking was ordered to be refunded because stilt parking cannot be sold by the promoters.

The order pointed out that external development charges were paid at the rate of 120 per sq ft originally and later reduced to Rs 40 per sq ft. On refund of service tax, the commission ordered that the builders were at liberty to claim refund from the government. The commission held that the builders could not charge for club since it was not functional. A spokesperson for TDI Infratech, based at Delhi, said: “We have not received the orders yet. We will evaluate our position on the issue and approach the national commission for an appeal.”

Taken for a ride? Approach Regulatory Authority

Besides consumer forum, an aggrieved customer has an option to approach the Real Estate Regulatory Authority (RERA), which was established last year to protect the rights of home buyers and simplify remedial measures for the wrongs committed by the developers. 

A consumer can, with the permission of the commission, withdraw his complaint and approach RERA. A consumer also has the option to keep pursuing his complaint in the consumer court and file a complaint under RERA, with the consumer forum permission.

RERA offices in region

Punjab Punjab Mandi Bhawan, Mohali

Haryana HUDA complex, Sector 6, P’kula

Chandigarh UT, Secretariat, Sector 9