The Karnataka State Consumer Disputes Redressal Commission has directed a housing society to pay compensation for not allotting sites and has criticised the way housing societies are functioning in the State.
The commission observed that housing societies were collecting money from a large number of members promising allotment of sites. But after collecting the money, the societies start acquiring land, form layouts and allot sites only to a select few. The remaining members are made to wait. Members are made to run from pillar to post even to get back their money, the State Commission said.
State Consumer Disputes Redressal Commission’s President Chandrashekaraiah and Member M. Shama Bhat observed this while deciding against BEML (HRS-MKT) SC/ST Employee’s Welfare Association.
The association, with a view to forming a layout, asked its members to pay a certain sum of money with the promise that it would allot sites to them. The members paid the full amount between 2002 and 2004 but the association did not allot them sites in the BEML Shirdi Sai Layout. Instead, in 2006, it asked them for an additional sum to meet the cost of escalation of the land and the hike in development costs.
This made 27 members of the association approach the Third Additional District Consumer Forum, Bangalore Urban, charging the association with deficiency in service.
The District Forum directed the association to refund the amount received from the members with 18 per cent interest and asked it to pay compensation of Rs. 1 lakh to each of the members.
The forum also asked the association to pay Rs. 10,000 each as the cost of the litigation. Members and the association filed separate appeals before the State Consumer Disputes Redressal Commission.
The secretary of the association who appeared before the state commission said all the sites formed in the layout had been allotted and no sites were available for the complainants (members).
Commenting on the association’s act, Mr. Chandrashekaraiah and Mr. Bhat said the complainants have been deprived of sites because of the fact that the society (association) has not come forward to allot sites in their favour. We take judicial notice of the value of the site as on today in and around Bangalore.
In the event if the complainants were to purchase a site measuring 30’ X 40’ as on today they have to pay the price somewhere between Rs. 15 lakh and Rs. 20 lakh, they said.
The commission has directed the association to refund the amount paid by complainants towards sale consideration of sites with 18 per cent interest.
It has also asked the association to pay compensation of Rs. 10 lakh to each of the complainants in relation to the site measuring 30’ X 40’ within three months.
This is a wake-up call for all housing societies operating in the state as well as all over India, where the societies do take deposits from many members than the available/yet to form housing sites and do no keep their promise and the members lose the opportunity to to own a lifetime dream housing site. The above information was re-posted for the benefit of citizens, courtesy The Hindu Newspaper, and the same could be accessed from,
