Bengaluru consumer court tells housing co-op to pay Rs 12.3 lakh to citizen over unallocated site

Bengaluru: A city consumer court recently ordered the Telecom & Govt Employees Welfare Housing Cooperative Society to refund Rs 10.2 lakh it had collected from a member towards allotting a site.

The member, Vijayanagar resident Jacob Easow, alleged that the society had, in 2015, advertised and invited applications for allotment of sites at its project Telecom Green City on IVC road near Devanahalli. Easow became a society member on Nov 11, 2015 while opting to buy a 30ft x 50ft site at Telecom Green City. The society told him the project would be completed in 36 months and his site would cost Rs 13.5 lakh. It collected Rs 3.4 lakh from him and asked him to pay the rest of the sale amount in three equal instalments of Rs 3.4 lakh each. Easow paid them,

However, no site was allotted despite his repeated requests. Easow issued a legal notice on Sept 2, 2022, calling upon the society to refund with interest all that he had paid. The society neither repaid nor replied to the notice.

Easow then lodged a complaint with the Bengaluru Urban consumer disputes redressal commission. In court, the society said its terms and conditions made it clear the site allotment was subject to approval of membership and clearance of land by BDA/BMRDA/BIAAPA, and its availability.

Nevertheless, the court pointed out that though the society had received money from purchasers like Easow in 2015, it was unable to form or allot sites till date. “Without even obtaining any approvals, the society has simply issued paper publication and ads and collected a huge amount,” the court said. It directed the society to refund the deposit with interest of 10% pa from the date of payment till realisation. It also has to pay Easow Rs 2.10 lakh as compensation and litigation expenses, respectively. If the society fails to pay the money within 60 days of the order, interest will have to paid at 12% pa on the deposit.

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