Coimbatore-based construction firm to compensate consumer for halting work, ET RealEstate

January 19, 2025
1 min read
Coimbatore-based construction firm to compensate consumer for halting work, ET RealEstate


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COIMBATORE: The district consumer disputes redressal commission has directed a construction firm to pay Rs5 lakh to a consumer for abruptly halting work after receiving a payment of Rs20.26 lakh, leaving the consumer in the lurch.

In his submission to the commission, M Asan Maideen stated that he had entered into an agreement with Idayarpalayam-based KR Builders on January 30, 2023 to build a new house measuring 1,507sqft on his land at Narasimanacikanpalayam. The firm assured him that the house would be constructed using AAC block method and pegged the cost at Rs23.20 lakh. The firm also told him that the work would be completed in four to five months.

Maideen subsequently paid Rs20.26 lakh to the construction firm. However, KR Builders stopped the work in-between and demanded an additional Rs5 lakh. Also, the construction was not done using the promised AAC block method.

To ascertain the value of completed work, Maideen appointed a surveyor, who estimated that the same would have cost only Rs15.06 lakh. Despite several requests from Maideen to complete the construction and account for the excess payment, which he paid, KR Builders did not respond. Left with no other alternative, he filed a petition with the district consumer disputes redressal commission, seeking a refund and compensation for the mental agony caused.

In its order, commission president R Thangavel and member G Suguna noted that as per the agreement the construction firm was ought to complete the work within five months. “Despite receiving Rs20.26 lakh, the firm failed to fulfil its obligations and unjustly collected an additional Rs5 lakh,” it said and directed KR Builders to refund the Rs5 lakh to Maideen, along with a compensation of Rs10,000 and another Rs5,000 towards the cost of legal proceedings.

  • Published On Jan 19, 2025 at 10:00 AM IST

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