The consumer commission has directed GMADA to pay interest on ₹7 lakh it retained for over four years from a man who was kept on the waiting list for an industrial plot in IT City, Mohali, and later refunded the principal amount. The commission also ordered GMADA to pay him ₹45,000 as compensation and litigation costs.
The commission, comprising president SK Aggarwal and member Paramjeet Kaur, partly allowed the complaint filed by Om Parkash Verma and directed GMADA to pay interest on the ₹7 lakh earnest money from June 1, 2018, to October 4, 2022, when the authority refunded the principal amount.
The commission said GMADA was not justified in retaining the amount beyond the waiting period. It also observed that the authority could have taken another six months for the refund considering possible delays in official processing, but kept the money indefinitely.
Verma had applied for a 500-square-yard industrial plot in IT City in October 2016 and deposited ₹7 lakh as earnest money. The draw of lots were held on November 30, 2016, and his name figured at number one on the waiting list.
He later sought information from GMADA through an RTI application regarding the allotment status and cancellations. In April 2022, he sought a refund of his earnest money. GMADA approved the request and issued a cheque for ₹7 lakh dated October 4, 2022.
{{/usCountry}}He later sought information from GMADA through an RTI application regarding the allotment status and cancellations. In April 2022, he sought a refund of his earnest money. GMADA approved the request and issued a cheque for ₹7 lakh dated October 4, 2022.
{{/usCountry}}Verma approached the consumer commission seeking 18% interest on the amount from the date of deposit, ₹2 lakh compensation for mental agony and harassment, and ₹75,000 as litigation expenses.
GMADA argued that Verma opted to retain his application and earnest money for 12 months after the draw because his name figured on the waiting list.
The commission, however, noted that GMADA failed to produce documentary evidence supporting its claim that another draw was held in January 2021. It relied on Verma’s January 2017 application, which specifically recorded that his name was number one on the waiting list in the November 2016 draw.
The commission directed GMADA to pay 6% annual interest on ₹7 lakh for the specified period, along with ₹25,000 compensation for mental agony and harassment and ₹20,000 towards litigation expenses. If GMADA fails to make the payment within one month of receiving the certified order, the interest rate will rise to 9% per annum until actual payment.