NCDRC asks PUDA to refund Rs 3L for delay in land allottment

The National Consumer Disputes Redressal Commission has directed Punjab Urban Planning and Developing Authority (PUDA) to pay Rs 3 lakh to a consumer for delay in delivery of a residential plot.
The apex consumer commission said that making the consumer wait for delivery of a plot for an indefinite period amounts to unfair trade practice.
It asked PUDA to refund Rs 3,08,040 to Punjab resident Amrik Singh which he paid as advance for a plot in a PUDA project, along with Rs 3,000 towards legal cost.
"The complainant is not expected to wait for the delivery of possession of plot for indefinite period.

"The aforesaid conduct of the opposite party in itself amounts to unfair trade practice by which they are utilizing the money belonging to the gullible consumers without making a serious effort to ensure that the promised possession of the plot is delivered within a reasonable period," the apex consumer bench headed by its presiding member Ajit Bharihoke said.
According to the complaint filed by Singh, PUDA, in 2012, floated a scheme for allotment of 976 free hold residential plots in Mansa district in Punjab.

Singh had applied for a plot in the said scheme and deposited 10 per cent of the consideration amount for 200 square yards i.E. Rs 1,20,000 and was issued Letter of Intent on February 26, 2013. He further paid an amount of Rs 1,88,040 as advance.

The complaint further alleged that even after two years of issuing the letter of intent, PUDA failed to issue allotment letter and was not even able to complete the development work at the site.
PUDA, however, claimed that Singh never applied for refund of money and if he is not interested in the scheme they were ready to refund his money as per the terms and conditions contained in the brochure and the letter of intent.
However, the district forum allowed the complaint and directed PUDA to refund the amount deposited by Singh besides imposing a cost of Rs 3,000.

PUDA's appeal to the state commission was dismissed after which it approached the NCDRC.
"The stipulation to the effect that possession shall be delivered within 18 months of the issue of allotment letter gives a clear indication that impression was given to the consumers that possession of the plot would be delivered within a reasonable period i.E. 2-2.5 years, which implied promise has not been fulfilled by the opposite party," NCDRC said while dismissing PUDA's revision petition.