Mohali: GMADA to shell out

Pulling up the Greater Mohali Area Development Authority (GMADA) for delaying a residential plot’s handover for two years, the District Consumer Disputes Redressal Commission has directed the authority to pay ₹5.87 lakh as interest, besides ₹30,000 as compensation, to a Mohali resident.
Anita Rani of Shahi Majra, Phase 5, had lodged a complaint against GMADA through its chief administrator and estate officer in 2021.
She had submitted that GMADA launched a scheme for allotment of 750 residential plots under the name and style “IT City” at Mohali.
The letter of intent, dated January 10, 2017, for a plot measuring 256.66 square yards, was issued in favour of the complainant.
Subsequently, the allotment letter, dated June 12, 2020, was issued to the complainant, vide which Plot Number 1125 at 83 Alpha Block in IT City was allotted to her.
As per Clause 15 of the letter of intent, the physical possession of the plot was to be handed over to the allottee within a period of one year from the date of issuance of letter of intent, which was January 9, 2018. However, GMADA failed to deliver possession of the plot within the said period.
With regard to delay in delivery of possession, GMADA pleaded that State Level Environment Impact Assessment Authority caused delay in issuing amended environment clearance and thereafter allotment of the plot could not be issued due to outbreak of Covid-19 pandemic and imposition of lockdown, which were beyond their control.
The commission, however, observed that GMADA failed to clarify as to why they received huge amount from the complainant knowing fully well that necessary clearance was not given by the competent authority.
The commission further observed that GMADA should have obtained all approvals before booking the plot.
GMADA collected money from the prospective buyers including the complainant, without obtaining statutory approvals/clearances, which amounts to unfair trade practice on its part, the commission said.
‘Cannot use pandemic as shield for delay’
It added that as far as plea regarding Covid-19 pandemic was concerned, the said pandemic took place in 2020. Being a subsequent event, it had no relation, as booking of the plot was made by the complainant in 2017 and possession of the plot was to be delivered in 2018. At that point of time, there was no Covid-like situation.
“We partly allow the complaint and direct the opposite parties to pay to the complainant interest at the rate of 9% on the amount so deposited by the complainant, which is ₹65,24,827, from the agreed date of delivery of possession, that is January 9, 2018, till the date of actual physical possession, that is June 12, 2020, within a period of 30 days. The OPs are further directed to pay ₹30,000 as compensation for mental agony and harassment as well as litigation expenses to the complainant,” the commission pronounced.