O R D E R

 SHRI G.P.SAHOO, MEMBER

          This appeal is preferred against the order dt.10.07.2007 passed by the Dist. Forum,Cuttack  in C.C. Case  No.33 of 2015.  The O.Ps therein are the appellants.

2.       Case of the complainant was that in pursuance of an advertisement as “L.I.C Policy holders Housing Scheme” for allotment of 75 nos. of flats at Jeevan Bima Nagar Phase-II,Chandrasekharpur,Bhubaneswar, the complainant purchased brochure by paying Rs.2000/- and submitted a required application along with initial deposit of Rs.1,00,000/-.  During process of draw of lots, the complainant was allotted Flat No.304 in Building-B/6 of the said Bima Nagar and has issued allotment letter and was intimated to deposit a sum of Rs.47.25 lakhs towards balance amount and the complainant obtained the loan from L.I.C Housing Finance Ltd. of Rs.38.00 lakhs and paid rest Rs.9.25lakhs from his own source.  He also paid Rs.5000/- towards processing fee and Rs.1500/- towards tri-party agreement.  The E.M.I  of the loanwas fixed @ Rs.37,020/- payable with effect from 10.6.14.  Though the O.P.1 assured that the registration process will be done very soon and the possession letter of the flat will also be issued but the matter was delayed.  Subsequently the complainant could know that the land on which the flat allotted and constructed comes under “forest land “ category for which no registration can be made without obtaining forest clearance certificate.  The complainant was paying E.M.Is regularly.    But the complainant could know that the registration is not possible, so he requested the O.P.1 for handing over the flat or pay back the amount paid to the O.P No.1.  There was further correspondence with the O.P.1 with regard to the possession and registration of the flat and the complainant also met O.P No.3 personally.  Ultimately on 24.10.14 the appellants intimated that they are not in a position to convey the title by way of registration of lease deed due to amendment in the Registration Act and they wanted to refund the amount deposited by the complainant.  The complainant was advised to obtain outstanding loan quotation from LIC Housing Finance Ltd.  Ultimately on 31.10.14 the appellants settled the matter with LIC Housing Finance Ltd. but they did not settle the amount of the complainant.  Ultimately on 29.1.15 the appellants paid only Rs.10,18,234/- to the account of the complainant.  The O.Ps failed to refund the EMIs paid by the complainant to the LIC Housing Finance Ltd. along with interest.  So the complainant filed the complaint for refund of the said amount and other amount due to him.

3.       The O.Ps filed their written version admitting almost all the allegations of the complainant.

4.       After hearing both the parties, the learned Dist. Forum directed the appellants to refund a sum of Rs.2,00,466/- on different counts such as cost of brochure, loan processing fee, fee for tri-party agreement, levy charges deducted by LIC Housing Finance Ltd.,cost of stamp papers and EMIs paid by the complainant to LIC Housing Finance Ltd. with interest @ 12% per annum.  The appellants are also directed to pay interest on Rs.10,18,234/- for a period of 8 months @ 12% per annum.

5.       The O.Ps filed this appeal on the grounds that the learned Dist. Forum should not have directed for payment of interest @ 12% per annum since the appellants have already refunded the amount by liquidating the loan.  The learned Dist. Forum should not have directed the appellants to refund the cost of brochure, processing fee, fees for tri-party agreement etc. which is illegal. 

6.       On the other hand the learned counsel for the Respondent who appeared in person supported the order of the learned Dist. Forum.

7.       We have heard the learned counsel for the appellants and the respondent in person.  We have gone through the Dist. Forum record and the documents filed by the parties. 

8.       As it appears the appellants were aware of the fact that the land on which the flats have been constructed has not been leased out to them by the Govt. of Odisha.  It is also known to the appellants that the land is a forest land and without clearance with regard to the type of land i.e. forest land no permission can be given by the State Govt. for construction activities on the said land.  Still then taking risk upon themselves, the appellants issued advertisement inviting applications from the respondent and others for allotment of flats and processed the same.  They also induced to the respondent to obtain loan from LIC Housing Finance Ltd. who appears to be the sister concern of the appellants.  We find that the reasoning’s given by the learned Dist. Forum for refund of cost of brochure, processing fee etc. is correct.  Unless the appellants were clear about their title over the landed property on which they have to construct the flats they should not have invited applications from the respondent and others for allotment of flats.  They have allured the respondent and others about their own title over the land.  In such circumstances, direction for refund of cost of brochure, processing fee etc. appears to be correct.  Besides that the O.Ps should have paid the E.M.Is paid by the respondent to LIC Housing Finance Ltd.  However the interest imposed 12% per annum appears to be at higher side.  We want to modify the said interest which should be 8% per annum.

9.       In the above circumstances, we find that the appeal has no merit and is liable to be dismissed with modification regarding direction for interest.  Hence ordered;

ORDER

The appeal is dismissed on contest.  However, with regard to the order regarding payment of interest & with regard to refund of the money to the Respondent as directed by the learned Dist. Forum, it is reduced to 8% per annum.

The LCR be sent back to the Dist. Forum at the earliest.