Commission directs DDA to pay ~1L to city resident

Tribune News Service

Chandigarh, August 28

The State Consumer Disputes Redressal Commission, Chandigarh, has directed Delhi Development Authority (DDA), New Delhi, to pay a compensation of Rs 75,000 and litigation cost of Rs 25,000 to a city resident for refunding the amount of a cancelled flat. The commission has also directed it to pay interest at 9 per cent p.a.on Rs 7,63,398 from the respective dates of deposit till April 11, 2017.

The commission has passed the order while dismissing an appeal filed by the DDA against the order of the commission dated August 1, 2023.

Vidya Shankar Pandey, a resident of Sector 39-B, Chandigarh, in the complaint said in 1979, he deposited Rs 4,500 with the DDA for New Pattern Housing Scheme and was accordingly issued allotment letter on December 26, 2001, for a flat.

As per demand of DDA, he deposited Rs 7.58 lakh for the flat after taking a loan from a bank. He said he had paid an interest of Rs 5,03,51 up to 2013 on the loan amounting to Rs 8,17,670. He said the DDA issued a show-cause notice to him on June 23, 2006, informing that he was not eligible for allotment of the DDA flat as he had already been allotted a flat in Sector 23, Dwarka, in another scheme.

He said as the New Pattern Housing Scheme was not making any progress he had applied for another scheme. The DDA then allotted his flat to someone else without any intimation and neither returned Rs 7.63 lakh.

He approached the DDA for a refund, and the DDA refunded Rs 7,63,398 on April 11, 2017. However, DDA did not pay any interest on the amount for such a long period.

On his complaint the district commission directed the DDA to pay interest at 10 per cent p.a. on this amount for the delay in refund. The commission had also directed it to pay Rs 25,000 to the complainant as compensation and litigation expenses.

Not satisfied with the decision, the DDA filed an appeal against the order. After hearing the arguments the state commission modified the order and directed the DDA to pay to the complainant interest at 9 per cent p.a. on Rs.7,63,398.

The commission has also directed to refund the amount of Rs 99,600 spent for purchase of stamp paper for conveyance deed along with interest at 9 per cent p.a. from the date of cancellation of the allotment. The commission has also directed it to pay a compensation of Rs 75,000 for causing mental agony and harassment and Rs 25,000 as litigation cost.