HC dismisses GMADA plea, upholds refund with 12% interest
Dec 27, 2024 09:50 AM IST
The commission had upheld a 2018 State Consumer Disputes Redressal Commission ruling, which found the GMADA at fault for incomplete development work as outlined in the letter of intent. Consequently, the GMADA was directed to refund the full amount paid by the allottee, who declined possession due to the plot’s undeveloped state, with 12% annual interest.
The Punjab and Haryana high court has dismissed a plea from the Greater Mohali Development Authority (GMADA) challenging a 2023 National Consumer Disputes Redressal Commission order. The order upheld a refund to an allottee who refused to take possession of a plot due to its undeveloped state.
The commission had upheld a 2018 State Consumer Disputes Redressal Commission ruling, which found the GMADA at fault for incomplete development work as outlined in the letter of intent. Consequently, the GMADA was directed to refund the full amount paid by the allottee, who declined possession due to the plot’s undeveloped state, with 12% annual interest.
The GMADA argued in court that the letter of intent for the plot was issued in 2012, followed by the final allotment letter in 2017, even though the allottee had only paid 95% of the total amount in installments. Since the allottee neither paid the remaining 5% nor sought a refund within the stipulated 18-month period outlined in the agreement, the GMADA contended that he was not entitled to a full refund.
The allottee, Jiwan Kumar, submitted that the residential plot scheme in Mohali was launched in May 2012, requiring full payment within 18 months, with GMADA expected to complete development work by April 2014. However, the allotment letter was issued only in April 2017. Kumar wrote to the GMADA, arguing that possession could not be handed over as the plot remained undeveloped, and requested a full refund. When the GMADA denied the refund, Kumar approached the consumer panel for redressal.
The court found that the GMADA is charging interest ranging between 12 to 18% for delay in payment of the installments by the allottees. “Therefore, we do not find any illegality in the order of National Commission awarding interest at the rate of 12% per annum for the refund of entire amount as the GMADA themselves are charging interest at the rate of 18% for the delay in payments,” the bench of justice Anupinder Singh Grewal and justice Lapita Banerji said while dismissing the plea from the GMADA.
