Date:20/10/2007 URL: http://www.thehindu.com/2007/10/20/stories/2007102060190300.htm

Karnataka - Bangalore

Housing society told to pay Rs. 22 lakh

Staff Reporter

BANGALORE: The Karnataka State Consumer Disputes Redressal Commission ordered a housing cooperative society to pay compensation of Rs. 22 lakh for allotting a site to an applicant on land not owned by the society.

K. Subramanya, a resident of Lalbagh Road, paid Rs. 40,000 to Vishwabharathi House Building Cooperative Society for a site measuring 60 X 40 feet in the layout said to have been formed by the society. A sale deed was then executed in his favour in May 2002. The society also issued a possession certificate in November 2003. Later, Mr. Subramanya came to know that his site was not on the land belonging to the society but was in the name of the Bangalore Development Authority. He came to know that the BDA had not made any allotment to the society though it had made several requests for bulk allotment. Litigation in this regard was pending before the Karnataka High Court.

In the judgment, Commission President Chandrashekaraiah said the society ought not to have collected the money from the complainant and executed the sale deed in respect of the site which is not the property belonging to the society. “Executing sale deeds in favour of certain persons, forming the layout on the land not belonging to the society is nothing but cheating the general public,” he observed.

Club told to pay

The Bangalore Urban District Consumer Disputes Redressal Forum ordered Country Club to pay compensation of Rs. 1.5 lakh for failing to allot a site promised to a customer.

M.J. Ravindra, a life member of the Club, was offered to become member of “Mr. Cool Privilege” by paying Rs. 85,000. Along with other benefits of the new membership, he was assured of allotment of four guntas of land in the 10th phase of Country Club Coconut Groove Tumkur. He paid up in December 2006. But despite his repeated requests the club failed to allot a sit.

Mr. Ravindra filed a complaint before the Forum but the club failed to participate in the proceedings.

Forum President A.M. Bennur and members Syed Usman Razvi and M. Yashodhamma ordered the club to pay compensation of Rs. 1.5 lakh. It further ordered the club to pay litigation cost of Rs. 2,000 to Mr. Ravindra.