Collected Payments Without Necessary Approvals, Hyderabad Consumer Commission Directs’ Fortune 99 Homes’ To Refund And Pay Compensation

While acknowledging the company's failure to deliver possession as per the agreement, the Commission held Fortune99 Homes liable for deficient services, directing them to refund the entire paid amount of Rs. 25,00,000/- with 9% interest along with Rs. 50,000/- compensation and Rs. 25,000/- towards costs.

Brief Facts

Joseph Fernandes (Complainant) was attracted by an advertisement by Fortune99 Homes (Opposite Party) offering plots for sale. He decided to buy two plots in a venture called "NCS Fortune Medi City" after discussions and payment of Rs. 25,00,000/- out of the total cost of Rs. 35,00,000/-. The remaining amount was to be paid after Fortune99 Homes obtained necessary approvals. However, the company failed to secure these approvals and Joseph discovered that they were not the absolute owners of the plots they were selling.

When Joseph approached them, the company offered different plots in another project but did not provide essential documents for legal verification. As per the complaint, they also failed to fulfill their duty to obtain approvals for registering the plots in Joseph's name as per the agreement. Despite multiple requests and a legal notice, the company didn't refund the money. As a result, the complainant filed a consumer complaint.

Arguments by Fortune99 Homes

Fortune99 Homes, represented by its managing directors, argued that the complaint against them lacked merit. They explained that their company's role was to market and sell plots in an approved layout. Initially, they entered into an agreement with a representative claiming to act on behalf of the landowner, Mr. C. Suresh Kumar Agarwal, for certain lands. Fortune99 Homes paid an advance for developing, marketing, and selling this land. However, upon discovering that the representative did not fulfill the necessary formalities, they canceled that agreement and directly engaged with the original owner, applying for land approval in February 2023.

According to them, they informed the purchasers about the delay, seeking more time for plot registrations. They asserted that the complainant did not approach them or indicate readiness to pay the remaining amount for plot registrations. As a result, they rejected claims of service deficiency or unfair trade practices, urging the Commission to dismiss the complaint.

Observations of the Commission

The commission stated that consumers can't wait indefinitely for property benefits. "It is settled law that the complainant cannot be expected to wait for an indefinite time period to get the benefits of the hard-earned money which he / she has spent in order to purchase the property. "

Further, the Commission observed that the opposite party (Fortune99 Homes) collected payments before securing necessary approvals, constituting unfair trade practice. They found that Fortune99 Homes was deficient in providing services and directed them to refund the entire amount of Rs. 25,00,000/- with 9% interest per annum. They also ordered compensation of Rs. 50,000/- for inconvenience along with Rs. 25,000/- as costs. The company was given 45 days to comply with the order, failure of which shall attract an interest @ 3% p.a. from the date of the order till its actual payment.

Case Title: Sri. Joseph Fernandez vs. Fortune99 Homes

Counsel for the Complainant: Vijaya Sagi, Advocate

Counsel for the Fortune99 Homes: Habeeb Sultan Ali, Advocate

Click Here To Read/Download The Order