Failure To Furnish All Property Documents For Legal Verification Of Title Is Deficiency In Service: Bangalore Consumer Commission Holds Merusri Developers Liable

The District Consumer Disputes Redressal Commission Bangalore (Urban) bench comprising H. Channegowda, President, K Anita Shivakumar, Member and Suma Anil Kumar, Member has held a Real estate developer- Merusri Developers Pvt. Ltd. and its officials liable for failing to furnish all documents to the buyer for legal verification of the property on which his villa was to be constructed by the developer. Brief facts: The complainant, intending to construct a villa near the Kempgowda International airport, Bangalore, approached M/s Merusri Developers Pvt. Ltd. ('builder') and decided to proceed with their project titled- 'Merusri Sunlit Grove Annex'. The sales executive of the builder ensured that the possession of the villa will be handed over to the complainant by August 2025 or maximum by December 2025. The complainant then paid a sum of Rs. 51,000/- to the builder to receive the title papers of the property. Further, a rudimentary agreement was made to be signed by the builder from the complainant for forfeiture of the advance money in case of cancellation. It was further stated that a sum of Rs.42 lacs was demanded by the builder within 24 hours of delivering the title documents. The complainant requested the builder to wait for legal verification of the title to the property and also sought some additional documents as a part of scrutiny of the property title. However, the builder failed to furnish the requested documents. As per the complainant, the builder shared a draft of the sale agreement which was to be executed between the parties. The complainant accordingly suggested some changes in the agreement. However, the builder demanded a sum of Rs. 42 lacs i.e 25% of the amount from the complainant failing which, the changes would not have been made. The builder continued to force the complainant to pay the amount even before making the changes. Thus, the complainant conveyed his intent to not proceed further due to lack of transparency and sought refund of Rs. 51,000 advance money. On failure to refund the money, the complainant filed a complaint against the builder and its officials in the district commission, Bangalore. The builder entered appearance but failed to file a reply within the 45-day statutory period. Despite service of notice to the officials of the builder, they failed to appear before the commission and hence proceeded as ex-parte. Observations of the commission: The bench examined all the facts and documents on record and observed that only when the builder failed to furnish all the documents for legal verification of the title, a refund of the advance amount was sought by the complainant. Thus, it was held to be an act of deficiency in service on the part of the builder and its officials. It was further observed that the question of entering into agreement of sale by paying 25% of the consideration amount does not arise where the buyer has not been able to check the veracity of title to the property. As per the commission, the builder failed to rebut the allegations made in the complaint and to disprove the case of the complainant. Hence, the complaint was allowed with the following reliefs: Refund of booking amount of Rs. 51,000/- Rs. 20,000 as costs for mental harassment and agony. Rs. 10,000 as litigation expenses Case Title: M/s Trade Chart India vs M/s Merusri Developers Pvt. Ltd. Case Number: Complaint No. 301/2024 Date of Decision: 26.09.2025 Click Here To Read/Download The Order

Failure To Furnish All Property Documents For Legal Verification Of Title Is Deficiency In Service: Bangalore Consumer Commission Holds Merusri Developers Liable

Aakanksha Bajoria

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