Consumer forum enforcesRs 86.70 lakh cost on Sahara Prime City
Denying any leniency to the Sahara India’s city arm, the State Consumer Disputes Redressal Commission’s circuit bench imposed a heavy cost of Rs 86.70 lakh on it for allegedly defrauding 17 customers by not handing them flats after entering into contracts and accepting huge amounts.
A bench led by presiding officer BA Shaikh and member JayashreeeYengal also ordered Sahara Prime City Limited, a subsidiary of Lucknow-based Sahara India, to repay booking amount of all customers ranging from Rs11 lakh to Rs52 lakh with 18% interest from 2007 to 2011, when they had paid amount towards purchasing flats, row-houses, and penthouses, at company’s scheme on Wardha Road.
“We hold that the Sahara has rendered deficient service to complaints by not refunding their deposited amounts with interest and compensation. It has also shown inability to fulfil contract by handing over possession of their flats/houses within stipulated period. No leniency can be shown to them while considering rate of interest over the amounts to be refunded to the customers,” the judges said.
The forum held that the company is liable to pay compensation of Rs5 lakh each to 17 complainants for physical and mental harassment for loss suffered by them due to cost escalation in the price of residential units since, the date of proposed allotment to them at Sahara City Homes.