Now Reading: Consumer panel orders refunds in 3 sandalwood investment cases
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Consumer panel orders refunds in 3 sandalwood investment cases
The District Consumer Disputes Redressal Commission-II, Hyderabad, has ordered refunds or monthly payouts in three cases against Squares and Yards Infra Pvt Ltd and its sandalwood cultivation schemes. The orders passed on…
The District Consumer Disputes Redressal Commission-II, Hyderabad, has ordered refunds or monthly payouts in three cases against Squares and Yards Infra Pvt Ltd and its sandalwood cultivation schemes. The orders passed on August 21 require the company to refund investments or continue monthly payments with interest in disputes over land registration and promised returns.
In the first case, Suresh Kumar Chinta paid ₹17.5 lakh in March 2023 for 534 sq yards of farmland. The company paid him ₹30,000 monthly from April to September 2023 before stopping. The commission directed payments of ₹60,000 per month from October 10, 2023 to June 10, 2031, with 9% interest on defaults, plus ₹25,000 compensation. In the second case, Prasannanjaneyulu K invested ₹33.5 lakh in the Sandal Meadows project but only one plot was registered. The commission ordered a ₹33.5 lakh refund with 12% annual interest from March 31, 2023, plus ₹50,000 compensation. In the third case, Soma Nitish Reddy paid ₹17.5 lakh for a 267 sq yard unit that was never registered. The commission ordered a refund with 9% interest from July 1, 2024, plus ₹25,000 compensation.
All orders must be complied with within 45 days of receipt.
Indian Opinion Analysis
Sandalwood cultivation schemes marketed as investment products have drawn regulatory scrutiny before. In 2023, the Reserve Bank of India warned the public against such unregistered collective investment schemes, which often promise high fixed returns and land registration. The three complainants here lost between ₹17.5 lakh and ₹33.5 lakh each. The Consumer Commission's orders carry the force of a decree under the Consumer Protection Act 2019. The key number to watch is whether the company complies within the 45-day deadline or triggers enforcement proceedings.
Source: timesofindia.indiatimes.com
This brief was synthesised by AI from the source linked above.
