Housing organisation told to pay over ₹6L compensation

‘Complainant paid 90% of the cost of flat’

A District Consumer Disputes Redressal Forum here has directed the Central Government Employees Welfare Housing Organisation to compensate a complainant by paying over ₹6 lakh for canceling the allotment to a flat despite the latter having paid 90% of the total cost.

‘No unit available’

The panel said: “The cancellation was not warranted after receipt of amount of 90% of the total cost of the flat. Since the counsel for the opposite party has categorically argued that the said scheme had already been closed and no unit or flat is available, therefore we hold the OP to be deficient in service and adopting unfair trade practice.”

The organisation had however contended that while it had received ₹5.74 lakh for the flat, the allotment was canceled for “non-payment of outstanding amount.”

However, dismissing contentions put forth by the opposite party, the Bench directed compensation of ₹5.74 lakh to be paid to the complainant at an interest of 10% from January 2006 till the date of realisation.

The consumer panel added that an amount of ₹15,000 was to be paid to the complainant as cost towards litigation and “mental tension.”

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Printable version | Jul 7, 2020 7:17:52 PM |

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