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The Ranga Reddy District Consumer Commission has ruled in favor of buyers in two real estate disputes, reinforcing builder accountability. In one case, Rajitha Guduru was awarded a refund of INR 25 lakh with 9% interest after a firm failed to deliver promised returns on undivided land shares. In another, a couple was granted possession of a flat in Narsingi, plus INR 50,000 in compensation, after developers delayed handover despite a INR 36.9 lakh payment. Both cases highlight the importance of transparency and timely delivery. The rulings underline the powers granted under the Consumer Protection Act, 2019 to protect homebuyers.
The district consumer disputes redressal commission in Ranga Reddy, Hyderabad, has recently issued rulings in favor of consumers in two separate real estate disputes. These decisions underscore the increasing accountability of builders and investment firms. Advertisement
In the first case, Rajitha Guduru had deposited INR 25 lakh with a real estate firm, based on a promise of monthly returns from "undivided land shares." However, no payments were ever made, and she was not provided with proper documentation or the location of the land. The commission found the firm guilty of misleading the consumer. It ordered the firm to refund the INR 25 lakh with 9 percent annual interest, pay INR 50,000 for mental distress, and cover INR 10,000 in legal costs.
In the second case, N Gayathri and N Rajasekhar Reddy filed a complaint against two developers. The developers had failed to hand over a flat in a Narsingi project, even after the couple had paid INR 36.9 lakh. The commission ordered the developers to hand over the flat within three months, after collecting the remaining amount due. Additionally, they were instructed to pay INR 50,000 in compensation and INR 10,000 towards litigation costs.
These rulings by the consumer court emphasize the importance of transparency, timely delivery, and adherence to promises in real estate transactions. They serve as a reminder to builders and investment firms of their obligations and the legal consequences of delays, false promises, and lack of clarity. The Consumer Protection Act, 2019, empowers such commissions to protect consumer interests and provide redressal against unfair trade practices by developers.
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