Failure To Provide Property Documents For Title Verification Amounts To Deficiency In Service: Bangalore Consumer Commission
Pranav B Prem
The District Consumer Disputes Redressal Commission, Bangalore (Urban), comprising H. Channegowda (President), K. Anita Shivakumar (Member), and Suma Anil Kumar (Member), has held Merusri Developers Pvt. Ltd. and its officials liable for deficiency in service for failing to furnish all necessary property documents to the buyer for legal verification of title before execution of a sale agreement.
Background
The complaint was filed by M/s Trade Chart India Pvt. Ltd., represented by its Managing Director, Aniketh Jha, who intended to construct a villa near Kempegowda International Airport, Bengaluru. The complainant came across the developer’s advertisement for its project titled “Merusri Sunlit Grove Annex” and decided to proceed after being assured possession by December 2025.
Pursuant to discussions, the complainant paid a booking amount of ₹51,000 to obtain title papers of the property for legal verification. The complainant’s advocate, after examining the documents, raised several queries and requested additional papers to confirm the authenticity of the title. However, the developer failed to furnish all the requested documents and instead demanded payment of ₹42 lakh (25% of the total sale consideration) before entering into a sale agreement.
The complainant alleged that the builder insisted on payment before addressing concerns in the draft sale agreement and, due to the lack of transparency, sought cancellation of the booking and refund of the advance. When the refund was refused, the complainant approached the Commission seeking recovery of the amount along with compensation for mental harassment. Despite service of notice, only the builder appeared through counsel and failed to file its written version within the statutory 45 days. The remaining opposite parties were proceeded ex parte.
Findings of the Commission
Upon examining the documents and emails exchanged between the parties, the Commission observed that the complainant had sought additional documents solely for legal verification of the title. Instead of complying, the developer continued to demand 25% of the property value, which no prudent purchaser would agree to pay before verifying the ownership and title.
The Bench held that when a purchaser requests property documents for verification, the developer is bound to furnish them. Failure to do so amounts to deficiency in service. It further noted that the complainant was justified in seeking a refund when the builder failed to provide complete documents for verification. The Commission stated that “withholding the booking amount of ₹51,000 by the opposite parties, despite their failure to furnish all documents for title verification, amounts to deficiency in service.”
Directions
Holding the builder and its officials liable, the Commission directed:
- Refund of ₹51,000 (booking amount) with 9% interest per annum from 07.03.2024 until realization.
- ₹20,000 as compensation for mental agony and harassment.
- ₹10,000 towards litigation expenses.
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The Commission further ordered that if the amounts are not paid within 45 days, they shall carry 12% interest per annum from the date of default until full realization. The Commission concluded that the builder’s failure to provide essential documents for title verification before demanding a substantial payment was a clear act of deficiency in service and unfair trade practice. Accordingly, the complaint was allowed, and relief was granted in favor of the complainant.
Cause Title: M/s Trade Chart India vs M/s Merusri Developers Pvt. Ltd.
Case No: Complaint No. 301/2024
Coram: H. Channegowda, President, K Anita Shivakumar, Member, Suma Anil Kumar, Member
