VUDA directed to allot flat at original price

National Consumer panel issues order

November 09, 2017 12:36 am | Updated 12:36 am IST - VISAKHAPATNAM

The National Consumer Disputes Redressal Commission has, in its order on an appeal by VUDA, directed that an allottee in the Harita Housing Project be provided flat as per the original allotment letter.

Commission Presiding Member Prem Narain upheld the State Commission’s direction that VUDA should allot HIG flat in Godavari Block-1 as per the original allotment letter to Charva Sheela Reddy, professor in Indian Institute of Public Administration, New Delhi.

In his order on Wednesday, he said: “As there is no clause regarding increase in price of the flat in the allotment letter, I find no error in the order of the A.P. State Consumer Disputes Redressal Commission that VUDA is liable to hand over the possession in terms of allotment letter dated 18.10.2010. It means that the complainant is required to pay the price as per the letter of allotment only.”

However, setting aside the State Commission awarding a compensation of ₹2 lakh, he said the question of compensation for delay does not merit consideration because the 5th and 6th instalments were not paid and the possession was not due on the account.

The Commission said if Ms. Reddy had not paid 5th and 6th instalments as per the rescheduled dates, she would be liable to pay the interest. The payment of the two instalments should be governed by letter of VUDA dated 31.7.2013.

Ms. Reddy approached the State Commission in June 2013 seeking delivery of the flat as per the allotment agreement, rent of ₹15000 a month till handing over the flat and a compensation of ₹3.6 lakh towards mental agony. VUDA went in appeal against the State Commission’s order.

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