Consumer forum imposes Rs 2L fine on GMC, APRSCL

Vijayawada: The Guntur

consumer forum

pulled up

Andhra Pradesh Rajiv Swagruha Corporation Ltd

(

APRSCL

) and

Guntur Municipal Corporation

(

GMC

) for not allotting a house under Rajiv Gruhakalpa Phase-II to one Nidumukkala Prasad Rao even after payment of deposit amount. The forum ordered payment of Rs 2 lakh compensation to Prasad Rao for the agony that he went through.

Prasad Rao applied for a house under Rajiv Gruhakalpa Phase –II after GMC issued invited applications in the year 2007. He paid Rs 5,000 as processing fee besides Rs 250 as application fee. The Rajiv Swagruha Corporation stated that it would complete construction within two years after land acquisition.

However, no house was allotted to Prasad Rao and he did not receive any compensation even after 11 years. After this, Prasad Rao lodged a complaint with the consumer forum seeking orders to compensate him with Rs 7.2 lakh towards the rent he paid for 11 years and Rs 5 lakh for the mental agony he has gone through. In his complaint to the Forum, Prasad Rao said that he never received a reply to the several representations that he made to GMC.

Responding to the complaint, Rajiv Swagruha Corporation argued that the housing project was not launched in Guntur as no land was available. The corporation said that in spite of financial crisis after state bifurcation, it decided to give refunds but Prasad Rao did not receive it since he had not applied for it.

On the other hand, GMC argued that Prasad Rao is a beneficiary and not a consumer. It also stated that GMC has no role in house allotment and only forwards applications to Rajiv Swagruha Corporation.

Upon hearing both sides, the Forum turned down the arguments of Rajiv Swagruha and GMC and said it is their responsibility to keep all the applicants informed about the project.

However, the forum turned down the request of repayment of rent.

The forum also ordered allotment of an independent house under Pradhan Mantri Awas Yojana (PMAY) to Prasad and repayment of the processing fee with Rs 2,000 for costs of the complaint.