VIVEK DODA Vs. ESTATE OFFICER, GMADA

JUDGEMENT

(1.) The present complaint has been filed under Sec. 12(a) of the Consumer Protection Act, 1986 alleging deficiency in service and unfair trade practice in respect of a plot purchased by the complainant through an auction by the in Greater Mohali Area Development Authority (GMADA) which is a State Development Authority of Punjab.

(2.) The opposite party in their brochure published on 2014 on their website for auction of 46 residential plots in Sector 65, Mohali on an 'as is where is basis', invited bids and the last date for submission of the bid was 15/4/2014. As per clause 21 of the brochure, the possession of the plot was to be handed over within 90 days from the date of issuance of the allotment letter. The complainants submitted the bid for the same and the result of the auction was uploaded on the website of the opposite party on 6/5/2014. The complainants who were declared successful bidders paid the initial 25% of Rs.28,92,133.00 of the sale price. Thereafter the opposite party issued an allotment letter dtd. 10/2/2015 bearing Memo No. 4749 in respect of plot bearing no. 579 -A in Sector 65, Mohali, ad-measuring 196.25 sq. yds. The total sale consideration of the allotted plot was Rs.1,08,96,789.00 of which 75% of the balance sale price was to be paid by the complainant in lump sum with 5% rebate within 60 days of the issue of the allotment letter or in 6 half yearly equated instalments at the rate of 12% per annum.

(3.) Time was made an essential essence of the contract with the condition that 18% interest would be levied for period of delay upto 18 months, beyond which delay shall not be condoned under any circumstances and the said plot shall be resumed. The complainants had taken loan of Rs.70,00,000.00 from HDFC Bank Ltd., at a half yearly rate of interest at 10.15%. Since there was a lapse of 90 days in payment of instalment, re-allotment letter was also issued by GMADA vide memo no. GMADA/2015/24140 dtd. 23/6/2015 whereby Smt. Jyoti Doda, the present complainant no.2 was induced as a co-allottee. The complainants states that they lost faith in the false assurances given to them by the opposite party and decided to terminate the allotment on their own. Complainants sent a legal notice dtd. 5/9/2017 asking for refund of Rs.1,07,06,133.00 along with interest @ 18% on account of mental agony and harassment to the complainants. The opposite party failed to reply to that legal notice. The conditions for willful breach of terms and conditions of the allotment letter by the opposite party are stated to be (i) failing to offer of possession of the allotted plot within the time period prescribed in the brochure / letter itself; (ii) on account of the failure to develop the allotted land of the complainants as promised; (iii) the deliberate and willful retention of the amount payable as refund to the complainant with interest in pursuance to the legal notice; (iv) the illegal use of the amounts paid by the complainant in other areas which are not part of the allotted unit.