DDA asked to pay Rs.500,000 for delayed apartment delivery

July 16th, 2008 - 10:34 am ICT by IANS  


New Delhi, July 16 (IANS) Hauling up the Delhi Development Authority (DDA) for doubling the price of an apartment and delaying its handing over, a court here has asked it to refund the excess amount of Rs.400,000 and also pay Rs.100,000 as compensation for the mental agony and harassment the owner suffered. “In our view, there was no basis for increase in the price of the flat from 451,900 to Rs.804,590 by serving a demand-cum-allotment letter by the DDA,” Justice J.D. Kapoor, president of the Delhi State Consumer Commission ruled.

“To say that the estimated price was Rs.451,900 was a false and misleading statement as the complainant was given the impression that he would be charged only this amount even if it was a tentative amount,” the court added.

The case pertains to one Uday Kulkarni who booked a flat with the DDA in its Sixth Self-Financing Housing Scheme 1985. A flat was allocated to him in 1991 at an estimated cost of Rs.451,900.

Ninety percent of this was to be paid in four equal instalments every six months by July 31, 1993, that he paid.

The apartment was to be delivered within two years. However, the final demand letter was issued in 1998 showing the cost of the apartment as Rs.804,590. After adjusting the payment already made, Kulkarni was asked to pay an additional Rs.405,082.

He paid this under protest and ultimately he was given possession of the apartment on May 4, 1999. Thereafter, Kulkarni sought refund of the excess Rs.405,082 paid by him, as also compensation for delayed possession, financial loss, mental agony and harassment.

The DDA, while justifying the cost escalation, maintained that under the scheme, apartments were released from time to time for allotment to those registered with it.

Kulkarni either did not apply against these releases or he might not have succeeded in respect of his choice of area, DDA maintained. He was ultimately declared successful for allocation of a flat in Dwarka according to his choice, the agency added.

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