CC Filed on 10.08.2009<br /> Disposed on 06.11.2009<br /> <br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated: 06th day of November 2009<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> <br /> Sri. T.NAGARAJA, Member.<br /> Smt. K.G.SHANTALA, Member.<br /> ---<br /> <br /> Consumer Complaint No. 62/2009<br /> <br /> Between:<br /> <br /> <br /> N. Rama Shetty,<br /> S/o. N. Narayan Shetty,<br /> Aged about 58 years,<br /> R/o Hanumanahalli Village,<br /> Duggasandra Hobli,<br /> Mulbagal Taluk.<br /> <br /> <br /> (By Advocate Sri. K.V. Shankarappa & others) <br /> <br /> <br /> <br /> <br /> <br /> ….Complainant<br /> <br /> V/S<br /> <br /> <br /> Kolar Urban Development Authority,<br /> Kolar.<br /> Represented by its Commissioner.<br /> <br /> <br /> (By Advocate Sri. P.N. Krishna Reddy) <br /> <br /> <br /> <br /> <br /> <br /> <br /> ….Opposite Party<br /> <br /> ORDERS<br /> <br /> This is a complaint filed under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite party to pay Rs.2,768/- and Rs.9,772/- with interest from 15.12.1992 and from 15.06.1999 respectively on the said amounts till the date of realization with costs etc., <br /> <br /> 2. The material facts for the disposal of the case may be stated as follows:<br /> That the complainant deposited Rs.2,768/- on 15.12.1992 with intend to get a site measuring 30 X 40 feet in the layout formed by OP in Tamaka. But site was not allotted to complainant and the amount of Rs.2,768/- remained with OP. Subsequently in pursuance of a Notification dated 15.05.1999 issued by Kolar Urban Development Authority (Opposite Parties) the complainant deposited Rs.9,772/- on 15.06.1999 for allotment of a site measuring 30 X 40 feet in his name. Under the said Notification, KUDA had called for applications from public for allotment different dimension of sites at a place called Kodikannur adjacent to Srinivaspur Road in the outskirt of Kolar Town. The complainant has alleged that the scheme for allotment of sites at Kodikannur was dropped by OP. <br /> <br /> 3. The complainant has alleged that inspite of several approaches the OP failed to return the deposit of Rs.12,540/-. On the other hand the OP have contended that the complainant had filed false affidavit stating that he had no house or site at Karnataka state but on verification it was found that complainant was having his own house at Hanumanahalli Village. Therefore it is contended that complainant was not entitled for allotment of site as per the site allotment rules. Further the OP has contended that he intimated the complainant to receive back the amount on production of original receipt and further that as per the conditions stated in the Notification the complainant was not entitled to interest on the amount deposited. But the OP has not denied the allegation of complainant that the scheme to form sites at Kodikannur has been dropped for one or other reason. <br /> <br /> 4. Further OP contended that as per the conditions 10 and 11 of the Notification, it is not liable to pay any interest on the deposit amount. On consideration of the affidavits filed by parties and the materials on record, we hold that the OP is liable to pay the interest on the deposit for the following reasons: Condition No.10 of the Notification states that on the amount of deposit no interest will be paid. Condition No.11 states that after allotment of the sites the deposit will be returned to such of the depositors to whom sites are not allotted. <br /> <br /> 5. The OP does not deny the dropping of scheme. Therefore there was no question allotment of sites to any depositors. As per condition No. 11 of the Notification, the OP is bound to return the deposit amount to such of the deposit holders who were not allotted any sites. It was their duty to send a cheque or draft for the amount deposited by different depositors. For that purpose the depositors need not have approached OP making any enquiry. For that deficiency by OP atleast it is liable to pay interest at 8% p.a. on the amount deposited from 15.06.1999. <br /> <br /> 6. The OP is governed by the Karnataka Urban Development Authorities Act, 1987 and the Rules framed there under. The perusal of the provisions in the said Act and the Rules made there under, shows that the OP could have called for application from public for allotment of sites only when the layout was laid and the sites were ready for allotment. In the present case, it appears even before forming the layout, the OP called for applications for allotment of sites from public and received the deposits and registration fee. This approach clearly appears to be not in accordance with the spirit of the provisions of the said Act and Rules. The Act or the Rules do not provide for accumulating funds to meet the expenses of formation of layout. Therefore we hold that collecting deposits even before formation of sites is illegal. For this reason also it is bound to pay the interest on the deposits received by it. As interest is being awarded we think separate compensation for mental harassment need not be awarded. <br /> <br /> 7. Hence we pass the following:<br /> <br /> <br /> O R D E R<br /> <br /> The complaint is allowed with costs of Rs.1,000/-. The OPs shall pay Rs.12,540/- with interest at the rate of 8% p.a. on Rs.12,540/- from 15.06.1999 till the date of realization, within 30 days from the date of this order. <br /> <br /> Dictated to the Stenographer, corrected and pronounced in open Forum this the 06th day of November 2009.<br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> <br /> <br /> <br /> <br />