Housing firm to pay Rs 2.5 lakh for "illegally" cancelling flat
The New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked Central Government Employees Welfare Housing Organisation (CGEWHO) to pay the money
Sep 27, 2014
Source : The Financial Express
Residential Housing Project


New Delhi: A consumer forum has directed a housing firm to pay a compensation of Rs 2.5 lakh to a ex-government employee for "illegally" cancelling the booking of a flat alloted to him after accepting full price.

The New Delhi District Consumer Disputes Redressal Forum, presided by C K Chaturvedi, asked Central Government Employees Welfare Housing Organisation (CGEWHO) to pay the money to one Rameshwar Dayal Sharma, saying the company attempted to make capital out of his misfortune by adopting "arm twisting methods"

"We are shocked at the illegal and arbitrary style of functioning of Opposite Party (firm), which is promoting itself in name of fair deal to retired government servants. The facts reveal bundle of shocking facts, and unfair trade practice," the forum noted.

The forum noted that it was settled law that where more than 80 to 90 per cent cost is paid for the flat, the contract is specifically enforceable and such sale cannot be cancelled.

It said that in this case, the whole price was paid, and Sharma tendered Rs one lakh demand draft and wanted only two months to pay balance of maintenance charges of Rs 14,958 only as he had undergone eye surgery and had lost his brother.

"The OP management has attempted to make capital out of the misfortune of complainant, by arm twisting methods to demand more money and changing another flat no at higher cost," it said, while quashing the cancellation.

"We...hold OP guilty of deficiency, imperfection, and unfair trade practice for charging money in the name of restoration etc., by illegally cancelling the booking first, after accepting full price," the forum said.

Besides asking the firm to hand over possession of the flat to Sharma after he paid balance of Rs 1,14,958 of remaining charges, the forum also asked the firm to pay a compensation of Rs 2.5 lakh to him for deficiency and litigation expenses.

Sharma had told the forum that he had booked a flat with the firm in 2005 in Lucknow for a total initial cost of Rs 12,70,000. Later on this cost was increased to Rs 14,65,519 due to extra built up area.

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