Telangana State Commission Validates Builders Claim of Outstanding Payments (Consumer Case)

M/S Narne Estates launched a project called “Narne Estates, East City” for selling plots. An initial owner bought plots and later sold them to the complainant, who paid in full and requested a membership transfer.

The builder initially demanded Rs. 50,000 but later increased the demand, eventually claiming Rs. 46,239 along with maintenance charges and interest. The complainant objected, issuing a legal notice, but the builder did not respond. The complainant then filed a case with the District Commission, which ruled in favor of the complainant, ordering the builder to stop interfering with their rights, pay Rs. 5,00,000 in compensation and Rs. 10,000 in litigation costs.

The builder, dissatisfied with the decision, appealed to the State Commission of Telangana. The Commission found that the builder provided substantial evidence showing that dues were still pending in the initial owner’s account, despite the complainant’s claim of no outstanding amounts. Documents indicated that the builder had repeatedly requested payments for overdue fees, transfer charges, development costs, and maintenance. The initial owner was aware of the dues and had interacted with the builder about the sale.

The complainant acknowledged these demands and even negotiated payments but failed to mention them in the complainant. The State Commission partially upheld the appeal, modifying the District Commission’s order. It directed the complainant to pay Rs. 37,030 with 8% interest, after which the builder must issue a “No Due Certificate” and transfer the plot ownership. The builder was also allowed to withdraw the statutory deposit with interest.

Source: – Live Law
By: – Rajat Ranjan