Fortune 99 Homes asked to pay Rs 18.25 lakh with 9 percent for causing mental agony to Hyderabad resident

HYDERABAD: The District Consumer Disputes Redressal Commission Hyderabad orders Fortune 99 Homes to pay Rs 18.25 lakh along with nine percent interest to a Hyderabad resident for causing inconvenience and mental agony.

Chilka Satwik Reddy (29), a private employee and resident of Hasthinapuram Central, Hyderabad came across a brochure of Fortune 99 Homes about their venture ‘NCS Fortune MediCity’ at Mucherla village, Ranga Reddy district. Satwik Reddy decided to purchase a plot measuring 267 sq.yards at a cost of Rs 9,000 per sq.yard.

Accordingly, Satwik Reddy paid an amount of Rs 12 lakh through cheque and Rs 1,500 in cash. Thereafter, Madhirala Rosi Reddy on behalf of Fortune 99 Homes executed an agreement of sale dated April 8, 2021 and allotted plot No.228 in favour of Satwik Reddy. On demand of Fortune 99 Homes, a payment of Rs 6 lakh was made through cheque dated May 12, 2021.

Rosi Reddy and Kota Vijaya Babu from Fortune 99 Homes assured Satwik Reddy that they would soon obtain Hyderabad Metropolitan Development Authority (HMDA) approvals. On enquiry, Satwik Reddy came to know that Fortune 99 Homes were not the absolute owners of the subject plots in the venture. When Satwik Reddy approached Fortune 99 Homes, they agreed to reimburse the sale consideration to Swatik Reddy and issued a cheque dated August 11, 2022 for Rs 18.02 lakh.

Since Fortune 99 Homes requested Satwik Reddy not to present the cheque before the bank he accepted the request. Once again, on his visit to Fortune 99 Homes office, another cheque dated October 10,2022 was issued to Satwik Reddy. The representatives from Fortune 99 Homes again requested him not to present the cheque before the bank. Therefore, Satwik Reddy issued a legal notice dated December 11, 2022, but Fortune 99 Homes did not reply to the legal notice.

Although Fortune 99 Homes received 75 per cent of the total sale consideration of the subject plot, they failed to register the property in favour of Satwik Reddy. Fortune 99 Homes even pushed Satwik Reddy to fear and the threat of losing the money he paid for due to the action of Fortune 99 Homes. Satwik Reddy filed a complaint on Fortune 99 Homes and alleged deficiency of service and unfair trade practice of Fortune 99 Homes.

Satwik Reddy approached the Consumer forum as Fortune 99 Homes failed to deliver the service even after receiving the 75 per cent of the total sale consideration towards the purchase of the subject plot, which amounts to deficiency of service. The Court noticed that Fortune 99 Homes failed to register the plot for Satwik Reddy and also asked him not to present before the same in the bank due to insufficient funds.

The Court ruled that Fortune 99 Homes was deficient in providing services to Satwik Reddy since they failed to execute registered sale deed upon receiving the balance sale consideration within a reasonable time period. Hence, the Court ruled in favour of Satwik Reddy and the Commission directed to refund Rs 18,02,250 along with nine percent interest from the date of respective payments received from Satwik Reddy. The Court also asked Fortune 99 Homes to pay Rs 20,000 compensation for the inconvenience and mental agony and Rs 20,000 costs to him.