A property developer who allegedly sold a flat to a third party despite having entered into a sale agreement with a buyer after accepting Rs 5.75 lakh has been directed by the Howrah District Consumer Disputes Redressal Commission to refund the money and pay Rs 1 lakh as compensation.President Sanjay Mukhopadhyay and members Lipika Ghosh and Manas Bose observed that, having entered into a sale agreement with the complainant, selling the same to a third party during the subsistence of the agreement, is not only a deficiency in service but also an unfair trade practice.“So having entered into agreement for sale to sell the flat, sold out the same to other third party during subsisting of the agreement, is itself not only deficiency in service but it also comes within the purview of the unfair trade practice,” the order read.‘Unfair trade practice’The complainants (two brothers) had entered into an agreement with the developer on November 10, 2020, to purchase a 650-square-foot flat on the first floor of a multi-storey building in Howrah for Rs 10.40 lakh. It was stated that they paid Rs 5.75 lakh as advance, and the developer had agreed to hand over possession by the end of April 2021. However, the brothers later discovered that the developer had allegedly sold the entire first floor to another purchaser through a registered sale deed.It was stated that they subsequently approached the developer several times seeking possession of the flat or a refund of the advance amount. After their requests allegedly went unanswered, they issued legal notices demanding the refund. In response, the developer said that the Rs 5.75 lakh was not an advance towards the flat but brokerage charges for introducing him to the owners of another property.The developer also claimed that he had already paid or adjusted Rs 2 lakh following disputes between the complainants and that only Rs 3.75 lakh remained payable. In the written response, the developer told the commission an agreement was entered into with the complainants to sell a flat for Rs 10.4 lakhs. It was further stated that as complainants failed to pay the remaining consideration amount in time so he sold out the flat to other purchaser.The commission noted that the developer had failed to produce any document to establish that the complainants had defaulted on payment of the remaining consideration, forcing him to sell the flat to someone else. It further observed, “Opposite party admitted that complainants have paid him Rs 5,75,000 but he stated that he has paid and/or adjusted Rs 2,00,000 during the disputes between the brothers of the complainants. This submission is nothing but a concocted story of the opposite party and he failed to show any document either to pay Rs 2,00,000 to the complainants or to adjust the said amount.”Story continues below this adThe commission held that the developer had taken Rs 5.75 lakhs from the brothers to sell the flat but ultimately the flat was sold out to a third party.The commission thus allowed the complaint and directed the developer to refund Rs 5.75 lakh along with Rs 1 lakh compensation and Rs 5,000 litigation costs.TakeawayIf a developer sells a flat to another buyer after entering into an agreement for sale with a purchaser, it amounts to deficiency in service and unfair trade practice, entitling the original buyer to a refund of the advance amount with compensation.Consumers facing similar grievances may contact the consumer helpline in their respective states (West Bengal: 18003452808) or dial the National Consumer Helpline at 1915 for assistance.Story continues below this adDon’t miss out on these storiesDelhi man misses Bengaluru-bound flight, wins Rs 71,000 payout from airlineFungus found in organic butter, woman wins Rs 1 lakh payout from shop, manufacturer