The Haryana State Consumer Forum, Panchkula, convicted Vinod Bagai, the managing director of a real estate firm, Ess Vee Apartments Samar Estates, Sector 20, with one year imprisonment and a fine of Rs 10,000 for violating the Consumer Protection Act, Tuesday.
Bagai failed to pay the compensation to the applicant. He was taken into police custody and then to the Central Jail, Ambala.
Bagai is a resident of Sector 7. His brother Virender Bagai was convicted in September and the decision about Vinod was reserved. The decision came following the complaint of Ranbir Singh of Barwala, Panchkula.
According to the detailed orders, Vinod Bagai had been instructed to pay Rs 47.72 lakh with a 12 per cent interest per annum to Ranbir in 2017. At that time, the consumer forum had also directed that if the real estate owner failed to pay the money within the stipulated time, the complainant will be entitled to get an additional 15 per cent interest per annum.
Ranbir said that Vinod Bagai had once paid him only Rs 11 lakh and failed to pay him the money which was more than Rs 1 crore. He then filed an execution application in the consumer forum in March, 2020. During the course of the proceedings, non-bailable warrants were also issued against Vinod Bagai.
The order stated that Vinod had not been paying the outstanding balance to Ranbir and it is clearly an abuse of the Consumer Protection Act.
“As per CP Act, the opposite party, Vinod Bagai is punished with one year imprisonment and with a fine of Rs 10,000,” it was stated.
Sources said Vinod appeared in the consumer forum with his advocate and claimed that wrong facts are being presented against him in the forum.
His counsel appealed in the forum that a police investigation has also been launched against his client but the forum maintained that the police investigation and Consumer Protection Act are separate.
