Consumer Forum in Nagpur issues bailable warrant against Sahara chairman Roy

Nagpur: The State Consumer Disputes Redressal Commission, Nagpur bench, has issued a bailable warrant and summoned Sahara chairman Subrata Roy and his son Sushanta in their capacity as directors of Sahara Prime City Ltd. The construction firm has failed to comply with the commission’s 2015 order asking them to pay Rs15.96 lakh in damages to a flat buyer.

Deciding the complaint filed against them under the Consumer Protection Act by Vibha Mehadia, the forum had asked Sahara Prime City to refund Rs12.46 lakh with 12% interest from May 7, 2009, Rs3 lakh in compensation, and Rs50,000 towards legal expenses within 30 days of its verdict passed on September 18, 2015.

State commission president justice AP Bhangle and judicial member US Thakre issued a bailable warrant against a bond of Rs10,000 to Sahara builders as a result of not abiding by the order. Mehadia had booked a flat in Sahara Prime City scheme on Wardha Road in 2009. However, Sahara builders cancelled the flat booking alleging non-payment of instalments in 2010.

Though she had regularly paid the instalments, Mehadia was never given any receipts for the cheques she issued to an agent of Sahara. Mehadia then filed a complaint with Nagpur bench of the commission with a prayer to declare the purchase cancellation letter illegal in 2010. The commission had ordered Sahara builders to refund the amount paid by Mehadia along with 12% interest, among other costs.

As the builders failed to comply with the order, Mehadia again lodged a complaint against the Roys under section 27 of Consumer Protection Act. Even after giving opportunity, the firm did not acknowledge the order, forcing the commission to issue the warrant and summon the Roys to state the reason for not complying with the order, on June 7. Nalin Majithia represented the complainant Mehadia.

Besides Mehadia, several people have moved the forum after they failed to get possession of flats in the Sahara scheme on Wardha Road. In most of the cases, the forum has asked the firm to return the booking amount along with interest to the aggrieved buyers.