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LIT ordered to pay Rs 1 lakh for delaying flat possession

The district consumer disputes redressal commission has directed Ludhiana Improvement Trust (LIT) to pay Rs 1 lakh to a complainant for failing to give the consumer the possession of a flat even after 14 years.

The commission has ordered the LIT to pay the compensation within 30 days from the date of receipt of copy of order to Hem Raj Kapila of Gill road, failing which they shall be further held liable to pay interest on the said amount at the rate 8% per annum from the date of order till actual payment.

As per the complainant, he applied for the allotment of HIG 108 and HIG Super 54 multi-storey semi-finished flat to be constructed in Rajeev EnclaveShaheed Bhagat Singh Nagar, under Self-Financing Scheme on Feb 26, 2005 and deposited Rs 1,50,000.

On the day of draw for the allotment of flats on April 29, 2005, the opposite parties allotted HIG flat under the development scheme in his favour. As per payments schedule, he had to deposit the cost of flat through installments amounting to Rs 14,60,000.

The opposite parties executed an agreement of sale dated June 21, 2006 in his favour regarding the allotment of flat and he paid Rs 2,74,150 vide demand draft dated Oct 4, 2005, which was returned on the account of delay.

Subsequently, the delay was condoned dated May 2, 2006. The complainant further stated that he made the payment of installment of Rs 2,19,000 dated Sept 7, 2006. He allegedly again went to deposit the draft along with banker cheque dated March 7, 2007 of Rs 2,19,000, but the official of the opposite parties refused to accept the same.

Following a letter sent by the complainant, the opposite parties sent a letter dated April 26, 2007 informing the complainant regarding stay over the flats by civil courts due to which construction work had not been started.

On Dec 11, 2006, the executive engineer ordered that till further orders, the receipt of installments were deferred and that after getting the stay vacated they would send a reschedule of installments to be deposited. According to the complainant, he visited the office of the opposite parties several times to ask for the possession of allotted flat and for issuance of fresh schedule of installments, but to no avail.

The complainant further stated that under this scheme, a total of 162 flats were to be constructed, out of which construction work of only 21 flats, including his flat, was stopped by the opposite parties due to court orders. Of the remaining 141 flats, possession of 95 flats has been handed over to the allottees and only 46 flats are still lying vacant. The complainant, along with some other allottees who were suffering due to negligence, carelessness and deficiency in service by the OPs, approached the opposite parties to hand over possession of flat, but to no avail.

However, the complainant was ready to make balance payment in installments subject to issuance of fresh schedule and delivery of possession of the flat. The complainant issued a legal notice dated June 12, 2020 upon them, but no reply was received.

Hence, the complaint has prayed for issuing direction to the opposite parties to hand over the vacant possession of flat to him after accepting remaining installments rescheduled or to issue flat to the complainant in their other scheme on same terms and conditions, along with a compensation of Rs 2,00,000 and litigation expenses of Rs 55,000.

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