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The Andhra Pradesh High Court has ordered the release of realtor Syed Allabakshu, who was detained for three years by a consumer commission without proper legal procedure. The High Court emphasized that individual liberty requires strict procedural safeguards before detention. Allabakshu's company, Vijaya Saradhi Housing, failed to hand over plots after receiving advance payments. The Guntur commission had ordered refunds and compensation, leading to his detention in 2022. The High Court clarified its ruling does not prevent further inquiry if due process is followed.
The Andhra Pradesh High Court has recently ordered the release of a realtor in a case involving a consumer commission's action. This ruling comes after the realtor was detained by the commission without following proper legal procedure. The High Court emphasized that individual liberty is a fundamental right, and procedural safeguards must be adhered to before ordering detention. Advertisement
The realtor, Syed Allabakshu, had been detained for three years by a consumer commission. The High Court stated that his detention occurred without following proper legal procedure. The case originated from a complaint against Vijaya Saradhi Housing Pvt Ltd, a real estate company based in Guntur, which Allabakshu managed.
The company allegedly failed to hand over plots to buyers after receiving advance payments, as they had not purchased the land. The Guntur district consumer redressal commission initially ordered Allabakshu and his wife to refund the amounts with 12% interest, plus compensation for mental agony and litigation costs. When Allabakshu reportedly failed to comply with these orders, penalty petitions were filed in 2021. The commission then issued a warrant, and Allabakshu was produced and remanded for 14 days in July 2022. His remand was repeatedly extended thereafter.
Allabakshu's brother filed a habeas corpus petition, challenging this indefinite detention. The High Court found that the commission had sent Allabakshu to remand under Section 27 of the Consumer Protection Act, 1986 (which is similar to Section 72 of the 2019 Act), allowing for a fine or imprisonment for non-compliance. However, the High Court noted that there was no explicit finding by the commission that Allabakshu was being imprisoned specifically for default or non-compliance with the orders. In the absence of such a finding, the court ruled that his indefinite detention was improper and ordered his immediate release.
The High Court clarified that its order does not prevent the commission from completing its inquiry and passing necessary orders in the penalty petitions, provided due process is followed. This ruling underscores the necessity for consumer redressal commissions to adhere strictly to procedural safeguards, particularly those protecting individual liberty, before ordering the detention of a defaulter. Cases involving consumer disputes against real estate developers are common in India. Court rulings emphasize the importance of due process and proper legal procedures even when enforcing compliance in such matters.
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