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Judgment
A Housing Society even after collecting sital value from its members as long back as 2002-2004 has not allotted sites to the members on "first come first serve basis" on one pretext or the other nor is it in a position to allot alternative sites even now.
FOR the sake of clarity, the parties in this order are referred to according to their position in the complaint filed before the District Forum. Appeal Nos. 1051 to 1077/2007 are by the complainants and Appeal Nos. 1113 to 1139/2007 are by the O. P. challenging the common order dated 24. 4. 2007 passed by the District Consumer Forum, Bangalore Urban III Additional, in Complaint No. 3296/2006 and connected complaints.
The complainants were all associated members of the O. P. Society having been admitted by the Committee of Management of the Society. The Society with a view to form a layout asked the members to pay certain money with a promise that the Society would allot sites in their favour. Pursuant to that offer, the complainants have paid the full consideration for allotment of sites during the period ranging from 2002 to 2004. But the Society after collecting the money has not allotted sites to the complainants. From the records it is seen that since the Society was not in a position to allot sites in the Layout called "beml Sirdi Sai Layout" it wrote a letter to the complainants in the year 2006 calling upon them to pay an additional cost for allotment of sites in a layout to be formed stating that due to escalation of the land value and hike in the development charges, the complainants were required to pay additional cost. After receipt of the said letter the complainants moved the District Forum alleging "deficiency in service" on the part of the Society in not allotting sites to them despite payment of sital value.
FROM the above said facts it is seen that the Society, from the money collected from the complainants, had formed the layout but has not allotted sites to the complainants. The reason for not allotting sites appears to be that the sital value in and around Bangalore has gone up very high. In all probability the Society might have allotted sites to third persons by collecting extra money and thereby deprived the complainants of getting sites in the layout formed by the Society. The Secretary of the Society who is present before this Commission submits that all sites in the Sirdi Sai Layout have already been allotted to other members and no sites are available at present for allotment to the complainants. From this it is clear that the Society is not in a position to allot sites to the complainants. The complainants have paid the money to the Society out of their life savings with a fond hope of owning a site in order to have a roof over their head. As on today, if one wants to purchase a site of the dimension of 30''x40'' in and around Bangalore he has to shell down at least Rs. 15,000 to Rs. 20,000. If the complainants had been allotted sites as promised by the Society in the years 2002 to 2004, now their sites would have fetched Rs. 15,00,000 to Rs. 20,00,000. This high rise in the cost of sites may be the reason for the O. P. to avoid allotment of sites to the complainants. The Society might have allotted sites to certain favourites out of turn by collecting more money. The Counsel for the complainants produced a Xerox copy of Sale Deed executed by the Society in favour of one member in the year 2005. The Society has not produced the list of members before the District Forum to show that sites have been allotted to its members on the basis of seniority. Therefore, in the absence of such material produced before the District Forum, we are of the view that all is not so well in the Society. The District Forum in the impugned order has directed the Society to refund the amount received by it from the complainants with interest at 18% per annum from the respective dates of payments in addition to payment of compensation at the rate of Rs. 1,00,000 to each of the complainants and cost of Rs. 10,000 to each of the complainants. Both the complainants and the Society have filed these appeals challenging the impugned order, to the extent they are aggrieved.
THE Secretary of the Society who is present before us along with other Committee Members of the Society submitted that all the sites formed in the layout have already been allotted and no site is available to allot in favour of the complainants. The District Forum is also of the view that since there are no sites available no purpose would be served by directing the O. P. to allot sites and, accordingly, the District Forum has directed the O. P. to refund the money paid by the complainants with compensation of Rs. 1,00,000 to each of the complainants for mental agony and hardship. The Society had determined the cost of sites on the basis of land value and other expenditure to be incurred for the development of layout as was prevalent when the complainants started paying the money to the Society seeking for allotment of sites. Accordingly, the complainants were called upon to pay the sital value and pursuant to that the complainants have also paid the cost of the site to the Society. Despite the same, the complainants are now deprived of the sites because of the fact that the Society has not come forward to allot sites in their favour. We take judicial notice of the value of the sites as on today in and around Bangalore as stated supra. In the event if the complainants were to purhase a site measuring 30'' x 40'' as on today they have to pay the price somewhere between Rs. 15,00,000 and Rs. 20,00,000. Taking this fact into consideration, we are of the view that the complainants are entitled for compensation of Rs. 10,00,000 in respect of each site applied by them of the dimension of 30''x 40''. The District Forum has awarded a sum of Rs. 1,00,000 to each of the complainants towards mental agony and hardship. Since we are awarding compensation in favour of the complainants taking into account the present market value of sites as stated above, we find no reason to award any compensation towards mental agony and hardship. We would like to observe that most of the Housing Societies in Karnataka are not functioning properly. They collect money from large number of members promising allotment of sites and after collecting money they start acquiring some land, form a layout and allot sites only to a few members of their choice. When the remaining members demand for allotment of sites they are told that no sites are available and they have to wait till a new layout is formed. Thereafter for one or the other reason the Societies would not allot sites and the members are made to run from pillar to post even to get back their money. In several cases sites are allotted out of turn to the favourites of the Office Bearers of the Society at the cost of genuine members who would have paid money and waiting for allotment of sites. This amounts to unjust enrichment. It is for these reasons people are afraid of becoming members and paying amount to Societies. If the functioning of these Societies is not improved, people will lose faith in Societies. In the result, we pass the following Order: appeals are disposed of in the following terms: (1) The O. P. is directed to refund the amounts paid by the complainants towards sale consideration of sites along with interest at 18% per annum from the respective dates of payment till realization within three months from today. (2) The O. P. is also directed to pay Rs. 10,00,000 (Rupees ten lakh only) as compensation to each of the complainants in relation to site measuring 30'' x 40'' applied by the complainants within three months from today. (3) In the event if the O. P. fails to pay the compensation and the amount ordered to be refunded within three months as stated above, the O. P. shall be liable to pay interest at 18% per annum on the said sums payable from the date of filing of the complaints before the District Forum till realization. (4) In addition, the O. P. is also directed to pay Rs. 5,000 as cost of litigation to each of the complainants. Appeals disposed of.