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P Mohan   26 March 2016

Purchase of 2 flats

Kindly help me out in my query. 

I had purchased 2 flats from a builder through a broker. Both of them had connived to indulge in unfair trade practices against me. However, my lawyer says that the matter wont sustain in the consumer court since the judge will state that the 2 flats had been purchased for profit purposes and not for residing - thus not a genuine case for consumer court. Effectively, he has said that my case would have sustained if I had only purchased 1 unit and proved that the purchase was for living and not for profit. Is this true?

If yes, then is there no authority (for eg., Competition Comm of India) where I can approach for "Unfair Trade Practices"?

Thanks... P Mohan

 



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 9 Replies

r.sathyanarayanan   26 March 2016

i suggest u to state your problem,since i am respectfully disagree with your lawyer with this limited information.

P Mohan   28 March 2016

Thank you Mr Sathyanarayanan. I am putting forth the complete matter.

I was allotted 2 flats in a new residential project of a builder at Gurgaon (applied through their broker) after paying the advance. They demanded further time-linked instalments which I paid by cheque (the chqs had been handed over to the broker for onward delivery). However, the project got slightly delayed and there were rumours of rift between the promoters. Anyways, I decided to sell off the flats. I entered into agreement to sell. Surprisingly, I was told by the builder that there were dues on the said flats since the broker had applied my payments to another upcoming project of the same builder. The builder on his part diverted me to the broker asking me to obtain NOC from the broker. I was furious with the broker who kept aloof. I kept fighting with the builder, who finally adjusted the amounts. However, by that time, ther agreements had collapsed and there was enough badmouthing of my flats both by the broker as well as the builder. I had to incur huge losses, including selling the units at discounted prices.

When I decide to proceed to the consumer court, my lawyer tells me that the court will not see this as a genuine consumer matter since I am supposed to have purchased the flats for short term gains and not for genuine usage. I had actually purchased the flat for my 'split-up' family. However, I am of the view that whatever may be the condition, the rule of 'Unfair Trade Practices" apply on any organisation who undulges into the same - which was also one of the conditions of the erstwhile MRTPC Act.

Also, is there a possibility of applying to the Competition Comm of India for Unfair Trade Practices?

Pls suggest.

Thanks & Regards... P Mohan

 

 

 

r.sathyanarayanan   28 March 2016

Dear mr.mohan , While i really feel sorry for you,i wish to state that since u have sold the flats you won't get any relief from consumer court.if u hv not sold the flats it is different ,now even the person who purchased the flats also may have some problem may accuse you. if u want to claim any damges from the the builder/broker,i suggest you to file a suit in the regular court than going before any other forum. Regards, Shakthi.

P Mohan   29 March 2016

Thank you for your response. It was very valuable.

Kindly also reply to the other point - whether I can approach CCI for unfair trade practices?

Thanks... P Mohan

 

r.sathyanarayanan   29 March 2016

If your case is really strong,to stop the builder from indulging in unfair trade practice you can approach the consumer court itself,without claiming any compensation. To the best of knowledge and belief you don't have the case for CCI.

P Mohan   01 April 2016

Thank you again. Just one more clarification.

Your response has indicated that to approach the Consumer Court, it is not important whether I have purchased 1 flat or many flats - the court will certainly entertain my case if the builder has indulged in unfair trade practices. Thus, in my case, where I had purchased 2 flats, had I not sold off the flats, the consumer court would have entertained my case as also granted me compensation.

Pls advice on the above.

Thanks... P Mohan 

r.sathyanarayanan   01 April 2016

yes,Mr.mohan. Even though i am not aware about the real problem,from your brief submissions it appears to me that if you have not sold it ,you could have claimed compensation. Now since you have sold it ,it is a case to prevent only unfair trade practice to save the public. regards.

P Mohan   01 April 2016

I cant thank you enough for having spared so much of your valuable time in answering my queries. And this just one last question in the same matter:

Why is it that just mere selling of the units has deprived the matter of being entitled to compensation. All the facts and evidences of unfair trade practices are available with me. So, then why is it that Consumer Court wont entitle me the compensation (despite the fact that I had been cheated as a consumer), but a civil suit will ?

And this is when I had been forced to sell the unit because I had lost complete faith in the builder and his agent of further mischiefs on the 2 flats and further problems and bad mouthing so as to get my units to be completely blacklisted by the broker community. In fact, my units had already met with that kind of scenario - they had been so badly badly-mouthed that any broker would call me to specifically ask if there was any problems with my units - and then next time wouldnt call - since nobody wants to get embroiled with even the smallest kind of issue in any kind of purchase, when they are spending huge sum of money. Everybody wants to play safe.

Thanks... P Mohan

 

 

 

Thanks... Sharad

 

r.sathyanarayanan   01 April 2016

after having sold theflats,you are no more a consumer.This is to ensure that consumers are not put to hardship,but u hv transfered that to your buyer. if you file civil suit ,u hv to pay ourt fee according to the damages u claim and you and your opponent can give evidence and cross examine each other.by that process of trail the judge can conclude whether your case deserves any merit.

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