Chandigarh Housing Board directed to pay Compensation for Delay in Freehold Conversion.
Summary- In this post we will discuss about a recent decision of district consumer disputes redressal forum in which it had directed Chandigarh housing board to pay compensation to the resident for delay in conversion of his flat from leasehold to freehold.
Flat freehold delay to cost CHB ₹ 1L
Introduction: In this post we will discuss about the decision of district consumer disputes redressal forum in which it had directed Chandigarh housing board to pay compensation to the resident for delay in conversion of his flat from leasehold to freehold.
Facts of the case: Sudama mulchandani, a retired Central Government employee had purchased a flat in sector 45C from CHB. On November 29 2011 he submitted an application for conversion according to provisions of Chandigarh conversion of residential lease hold tenure to free hold tenure rules, 1996. He was advised to deposit rupees 450 and rupees 300 towards stamp duty. He alleged that Chandigarh housing board started to dilly dally when he followed up on execution of conveyance deed. Later Chandigarh housing board asked for NOC from Bank where mulchandani had raised education loan. The board was apprised that the loan was not race for the purchase of flat but it was an education loan for higher studies of his son abroad.
The board again delayed the matter. Mulchandani deposited conversion fees of rupees 4070. The conversion of the property was approved by Chandigarh housing board through letter dated September 14, 2012 and the complainant was advised to to submit conveyance deed in triplicate for it execution within 6 weeks and the same was submitted by him. However Chandigarh housing board chairman in an order on November 20, 2012 directed in future all the cases of execution of conveyance deed shall be e dealt with after taking latest report violations in the building duly verified by executive Engineer to keep a check on allottees against violations. After receipt of report on January 3 2 2013 it was referred to the architect wing to see confirmation regarding need based changes. The Chandigarh housing board white letter dated July 22 2013 denied the execution of the conveyance deed in view of the report of executive Engineer that they were certain violations. The complainant wide letter dated July 10 2015 apprised the Chandigarh housing board authorities that as per notification issued by administration, building violation was declined from conveyance deed. It was maintained that CHB authorities themselves admitted building violations had been relinked from conveyance deed and all the documents submitted by the complainant were found in order. Again Chandigarh housing board advised the complainant to deposit the amount of rupees 5900.
In its reply the Chandigarh housing board stated that as there were violations, the conveyance deed was not executed though the affidavit was submitted of there being no violation.
Related legal provisions :consumer protection act of 1986 which has been amended by the act of 2019.
Legal issues : whether the CHB i.e. Chandigarh housing board is guilty of deficiency in service ?
Decision of the district consumer disputes redressal forum : The district consumer disputes redressal forum has directed Chandigarh housing board to pay rupees 100000 compensation to a sector 45 resident for a delay in conversion of his flat from leasehold to freehold. The board was also told to execute the conveyance deed of the flat and refund excess amount of rupees 5900 with the interest at 8% per annum from August 16, 2018 and pay ₹ 10,000 as litigation cost. The forum said that the violation reported were vague and it was not detailed what was the nature of violations. The forum said it was evident there was clear cut deficiency in service and unfair trade practice on the part of the Chandigarh housing board.
Conclusion : Thus in the present case in hand the CHB was directed to pay a huge compensation for delay in conversion of leasehold flat to freehold amounting to deficiency in service.
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