Hyderabad Consumer Panel Orders Refunds in Sandalwood Investment Cases

The District Consumer Disputes Redressal Commission-II, Hyderabad, has ordered Squares and Yards Infra Pvt Ltd to issue refunds and resume monthly payments across three separate cases linked to its sandalwood cultivation investment schemes. The orders, delivered on August 21, came after investors approached the panel over unfulfilled land registrations, stopped returns, and bounced repayment cheques.

In the first case, complainant Suresh Kumar Chinta stated that he invested ₹17.5 lakh with the company in March 2023 and obtained registration for 534 square yards of farmland. Under the agreement, the firm paid him ₹30,000 per month from April to September 2023 before abruptly stopping payments. Chinta further submitted that the project site was subsequently locked and left unmaintained. Since the respondents failed to appear and were set ex-parte, the commission ordered the company to pay him ₹60,000 per month from October 10, 2023, to June 10, 2031, with 9 percent interest on defaulted instalments. The panel also awarded ₹25,000 in compensation and ₹5,000 towards litigation costs.

In the second dispute, investor Prasannanjaneyulu K claimed he invested ₹33.5 lakh in the company's Sandal Meadows project located at Bala Nagar in Mahbubnagar. Although the deal covered two plots, only one plot was registered, and the promised monthly returns ceased. After reviewing the case, the consumer forum directed the firm to refund the entire ₹33.5 lakh investment along with 12 percent annual interest calculated from March 31, 2023. The company was also ordered to pay ₹50,000 as compensation and ₹5,000 in costs.

The third complaint was filed by Soma Nitish Reddy, who paid ₹17.5 lakh to the firm for a 267-square-yard unit that was never registered in his name. Three repayment cheques issued to him under a memorandum of understanding signed in March 2024 subsequently bounced. The commission dismissed the company's contention that the matter constituted an exempt commercial transaction. It ordered a complete refund of ₹17.5 lakh with 9 percent interest from July 1, 2024, alongside ₹25,000 in compensation and ₹5,000 in legal expenses.

The consumer commission directed the firm to comply with all three orders within 45 days of receiving the directions, while dismissing claims filed against certain individual respondents.