TIRUMALA TIRUPATI DEVASTHANAM Vs. DIRECTOR GENERAL OF POSTS

JUDGEMENT

(1.) This complaint has been filed under Sec. 21 of the Consumer Protection Act, 1986 (in short, the 'Act') alleging deficiency in service by the opposite party in crediting a lower rate of interest on the investments and deposits made by the complainant with the opposite party.

(2.) The facts of the case, as stated by the complainant, are that the complainant, the Tirumala Tirupati Devasthanam (TTD) is a statutory organization governed by the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 which manages the affairs of the Sri Venkateswara Swamy Temple in Tirumala, district Chittoor, Andhra Pradesh. The TTD was construed to be a Public Trust by the Central Board of Direct Taxes which granted exemption under Sec. 10 of the Income Tax Act. It is stated by the petitioner that the Government of Andhra Pradesh issued an order instituting cash incentives for investments in various instruments of small savings with the Post Office on 24/6/1995. The Director of Small Savings and State Lotteries, Govt. of AP requested the Executive Officer, TTD to invest in small savings vide letter dtd. 17/9/1997. Accordingly, between May 2003 to February 2004, the TTD deposited Rs.29.00 crores in 11 accounts under the Post Office Time Deposit Account in Tirupati for a period of 5 years at 7.5% rate of interest per annum. Earlier, Rs.41,72,16,000.00 was invested between October 2000 to March 2003 in Kisan Vikas Patras (KVP) on different dates in varying amounts.

(3.) On 17/12/2005 the Post Master, Tirupati Post Office intimated that the Ministry of Finance had amended the Post Office Saving Account Rules on 27/7/2005 prohibiting accounts by certain categories including Trusts and that such accounts needed to be closed by 31/12/2005. The TTD sought a clarification from the Post Master whether the amendment applied to SB Accounts or included other deposits such as Term Deposits, KVPs, etc. On 28/4/2007 the Post Master, Tirupati informed that the KVPs were issued irregularly in contravention of rule 6 of the KVP Rules, 1988 and should be encashed at the earliest and that no interest would be payable. Upon taking up of the matter with the Superintendent of Post Offices, Tirupati, TTD was informed on 31/1/2008 to submit details in order to escalate the issue for a decision. However, on 19/6/2008 the Post Master, Tirupati conveyed that TTD could withdraw the principal and interest on Term Deposits involving TTD Pension, Gratuity and GPF Funds and the principal funds relating to the TTD's surplus funds. The Post Master, Tirupati advised TTD on 3/7/2008 to apply for the regularisation of the KVPs which was done.