DEFENCE COLONY SAHAKARI AVAS SAMITI LTD. vs Ghaziabad Development Authority

THIS petition has been filed on behalf of the Defence Colony Avas Samiti Ltd., Ghaziabad (hereinafter would be called Society). The Society was formed and registered on 30th June, 1986 with the objective of arranging to provide housing facilities to the military personnel, ex-servicemen and their widows by obtaining land for the houses and also construct houses for those who were for some. Reasons unable to build house themselves. The Ghaziabad Development Authority (hereinafter referred to GDA) was acquiring land, developing it and selling plots. Accordingly the Society applied to GDA on 19th January 1988 to allot the requisite number of plots. The Board agreed to meet the requirements of the Society by letter No. 160/2/88 dated 9th December 1988. The Society paid at the rate of Govindpuram Scheme the 10% registration fee amounting to Rs. 68,86,400/- on 16th September 1991 to the GDA in respect of 363 members. The GDA did not allot any house to the members of the Society in spite of the fact that the GDA earmarked the plots and houses. The land in question was neither acquired nor developed nor were any houses constructed for the Society. On 10th July, 1992, the GDA sent the Society a layout plan of the plots and houses allotted to the Society but those were in Karpuripuram instead of Govindpuram, contrary to as originally booked. There was substantial increase in schedule of payments for plots. The Society having failed in its effort to get any land or houses or even refund of the amount deposited, gave a notice to the GDA on 18th March, 1994 for refund of the amount deposited with the GDA with interest but the amount was not refunded. It was further alleged that the GDA had not given the Society the land or the houses but also had increased the price of the land allotted to the Society from Rs. 635/- per sq. metre in Govindpuram to Rs. 900/- per sq. metre in Karpuripuram Scheme. The Society made several requests for refund of the registration money but the GDA had never responded to their request. The GDA had started land acquisition proceedings in August 1988 and the land for the colony was acquired finally in December, 1988. The GDA had promised to allot the houses within two years as per the Govindpuram Scheme. Under these premises, the Society has filed this complaint for directions to the GDA to accept the rate of Rs. 635/- per sq. metre as applicable at the time of allotment in 1988 for the Govindpuram Scheme and if that was not possible, the GDA may be directed to refund the balance of the amount deposited by the Society. Interest was also claimed besides compensation of Rs. 5.00 lakhs.

THE GDA contested the claim of the Society by filing written version. THE defence set up by the GDA is that in the letter dated 27.1.90, it was clearly mentioned that the plots as indicated and as desired by the Society were to be allotted in Govindpuram Phase-II. It was further mentioned that the price of the land would be communicated after acquisition of land. It was admitted that the Society had deposited Rs. 68,86,400/- and provisional receipt was issued. THE Society was permitted to apply for Scheme No. 584, in Karpuripuram, which was the actual. name of the Govindpuram Phase-II. THE first page of the brochure made it clear that the property Code No. was 584 was not in Govindpuram but was in Karpuripuram. It is further pleaded that the rate of Rs. 900/- per sq. metre was fixed within the knowledge of the Society at the time of registration. THE Society had failed to deposit the money against the demand raised in the letter-dated 3.8.92. THE refund was sought on account of default of GDA. In fact, it was Society which failed to deposit the amount as per schedule contained in the letters. THE GDA refunded Rs. 5,40,000/- and Rs. 5.00 lakhs vide cheque No. 149335 dated 9.10.92 and Cheque No. 468424 dated 10.11.95 respectively and the action for refund of balance as per Clause 10.30 of the brochure had already been taken. No interest was payable on refund of the amount as Society was a defaulter of payment. THE land could not be handed over on mere payment of registration amount. THE total land in Karpuripuram could not be developed and the scheme had to be abandoned as the Society had been defaulter in payment of balance amount. THE GDA was prepared to hand over possession of plots but Society has failed to make payment as per schedule of payment and instead they were repeatedly asking for refund. In view of the circumstances explained above, there was no deficiency on the part of the GDA. We have heard the Authorised Representative of the Society and the learned Counsel for the GDA and have gone through the records of the case.

It was contended on behalf of the complainant-Society that the GDA may be directed to accept the rate of Rs. 635/- per sq. metre as applicable at the time of the allotment in 1988 for the Govindpuram Scheme. On the other hand Counsel for the GDA contended that the GDA had never agreed to charge at the rate of Rs. 635/- per sq. metre as contended by the complainant. The price of the land was fixed at Rs. 900/- per sq. metre. It was stated by him that the question of pricing could not be gone into in these proceedings by this Commission.

WE find that the contention raised by the GDA has merit and this Commission has taken a view in various pronouncements that the fixation of price cannot be gone into under the provisions of Consumer Protection Act. In view of this, we find no merit in the contention raised by the complainant. The second relief which is sought by the complainant is for refund of amount. On this aspect, an affidavit has been filed on behalf of the GDA wherein it is stated that the GDA is prepared to pay 5% interest to the defaulter Society on the amount deposited by it. The amount would be refunded along with interest @ 5% per annum within a period of two months from the date of receipt of this order. It is also mentioned in the affidavit that the Society had withdrawn an amount of Rs. 47,26,340 out of Rs. 68,86,400/- the total deposited. Only an amount of Rs. 21,50,060/- remained to be refunded with interest. An affidavit has also been filed on behalf of the Society wherein it is stated that an amount of Rs. 32,000/- should be added to the deposit figure of Rs. 68,86,400/- for three cases and it should read as Rs. 69,18.400/-. The District Forum, Ghaziabad had allowed interest in similar cases @ 12% to 14%. 5% interest which GDA is willing to pay is most unreasonable, unrealistic and not acceptable.

WE have given our thoughtful consideration to the entire matter. The case of the GDA is that the Society was a defaulter and did not pay the balance amount as demanded. The Society was not entitled to any interest but despite this the GDA is willing to refund the amount with interest at the rate of 5%. WE feel in the circumstances of the case, justice will be met if the GDA is directed to refund the balance amount due to the Society with interest calculated at the rate of 5% from the date of deposit till payment. The payment shall be made within two months from the date of receipt of the order. If the payment is not made within the stipulated period, the Society shall be entitled to interest at the rate 12% on the principal amount till the date of realisation. In the peculiar circumstances of the case, we make no order as to costs. Ordered accordingly. _______________