GMADA told to pay Rs 15,000 for excess deduction

  • HT Correspondent, Hindustan Times, Chandigarh
  • Updated: Oct 25, 2014 14:34 IST

For deducting excess money while refunding the earnest amount for a surrendered allotment, the district consumer disputes redressal forum in SAS Nagar directed the Greater Mohali Area Development Authority (GMADA) to pay Rs 15,000 as compensation to a resident of Phase-1 in SAS Nagar.

The complainant Manjit Singh, a resident of Phase 1 in SAS Nagar, had applied for the allotment of a Type-1 apartment under the disabled persons category in the Purab Premium Apartments flats constructed by GMADA. However, Singh had, in November 2012, submitted an application surrendering the allotment of the apartment and had sought a refund.

According to the terms and conditions, GMADA was to deduct 10% of the earnest money of Rs 10.55 lakh.

However, it refunded only Rs 6.59 lakh after deducting nearly 30% of the earnest money.

Aggrieved by the deduction, Singh moved the consumer forum.

Denying any deficiency in services, GMADA said it has already refunded the amount deposited by Singh after necessary deductions as per the terms mentioned in the brochure and the letter of intent, which Singh had signed earlier.

The GMADA claimed that Singh was not a consumer and the complaint was, therefore, not valid.

The forum, presided by Madhu P Singh, held: “The GMADA has ventured beyond the agreed terms by issuing the refund amount to the complainant after calculating 10% of the total agreed consideration from the already deposited amount. Thus, the deduction of Rs 2.92 lakh, being an excess deduction from the already deposited amount, is an act of deficiency in service and unfair trade practice on the part of GMADA.”

The forum also directed GMADA to refund Rs 2.92 lakh with 9% interest from July 2013 when the said amount had been retained by GMADA.

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