Chandigarh

DF-II

CC/734/2022

PREM SHANKER AGRAWAL - Complainant(s)

Versus

PRESIDENT/SECRETARY, THE CSIO EMPLOYEES CO-OPERATIVE HOUSE BUILDING SOCIETY 1ST LTD, VIGYAN VIHAR, S - Opp.Party(s)

In Person

10 Dec 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II, U.T. CHANDIGARH

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Consumer Complaint  No	:	734 of 2022
Date  of  Institution	:	15.10.2022
Date   of   Decision	:	10.12.2024

 

 

 

 

Prem Shanker Agrawal, Senior Citizen, aged 70 years, Resident (Owner) of H.No.553, Vigyan Vihar, Sector 49-A, Chandigarh (U.T.)-160047.

Mobile No.9216531944

             … … … Complainant

 

Versus

 

President/Secretary, The C.S.I.O. Employees Co-operative House Building Society (1^st) Ltd., Vigyan Vihar, Sector 49-A, Chandigarh-160047.

   … … … Opposite Party

 

BEFORE:  MR.AMRINDER SINGH SIDHU,       PRESIDENT

                MR.BRIJ MOHAN SHARMA,     MEMBER

                               

Argued by:    Complainant in person.

None for Opposite Party(OP).

 

 

ORDER BY AMRINDER SINGH SIDHU, M.A.(Eng.),LLM,PRESIDENT

 

1]       The complainant has filed the present complaint pleading that he purchased H.No.553, ‘B’ Category, Sector 49-A, Chandigarh, on General Power of Attorney(GPA) from Mr.Amar Nath s/o Sh.Nathu Ram(Original Allottee) on 10.10.2000. The allotment of the said House No.553 was given to the original allottee Mr.Amar Nath vide letter dated 25.03.2000 and the physical possession was taken on 24.04.2001.

 

    It is pleaded that as per the scheme of Chandigarh Administration, the complainant has approached the OP and requested to forward the case of H.No.553 for the Conveyance Deed in the name of complainant as per guidelines of Chandigarh Administration. The OP demanded Rs.25,000/- from the complainant in the name of processing fee which was paid to OP through cheque. The Conveyance Deed was registered in the office of Sub Registrar of Chandigarh Administration on 24.11.2021 and the complainant became the owner of the House No.553 in the OP society. The OP issued the Share Certificate, Allottment Letter and Possession Letter in the name of complainant on 14.12.2021.

 

    It is pleaded that complainant requested the OP vide letter dated 21.03.2022 to provide the copy of notification/guidelines of Chandigarh Administration (Finance Department) issued after 31.01.2020 (old Notification No.31/1/452-UTFI(4)-2018/21050, dated 14.11.2018 was expired on 31.01.2020) which authorized the President/Secretary of the Cooperative Societies to demand and accept Rs.25,000/- as processing fee for the execution of Conveyance Deed but the OP returned the letter on 27.03.2022 without providing any document of demand of Rs.25,000/-. The complainant again sent the same letter to OP by speed post on 30.03.2022 but no reply has been received from OP which amounts to deficiency in service and unfair trade practice on the part of the OP. Hence, this complaint has been filed with a prayer to direct the OP to pay the amount of Rs.25,000/- along with interest and pay compensation & costs of litigation.

 

2]       The OP in their written version has stated that the Chandigarh Administration, Finance Department (Estate Branch) issued notification/scheme on 14.11.2018 called the “Chandigarh Scheme for Transfer of Flats/Dwelling Unit in the Cooperative House Building Societies 2018”. After the law laid down by Hon’ble Supreme Court of India in ‘Suraj Lamp and Industries Pvt. Ltd. vs. State of Haryana & anr.’ AIR 2012 SC 2006, it became mandatory to get the register instrument of conveyance done before getting transfer of flat/dwelling unit. As per para (vi) page 5 of the scheme “there are many flats which have been transferred on the basis of GPA/SA/WILL, without execution of conveyance deed, as a result the stamp duty for such conveyance/transaction could not taken. Now, it may not be possible to register the conveyance deed on previous transaction dates, hence the following lumpsum compensation fee be recovered from the present occupant falling in this category before execution of conveyance deed:-

Type of Flats	In case one GPA/SPA/WILL transfer has taken place	In case two or more GPA/SPA/WILL transfers have taken place
Category “A”	Rs.75,000/-	Rs.1,50,000/-
Category “B”	Rs.50,000/-	Rs.1,00,000/-
Category “C”	Rs.25,000/-	Rs.50,000/-

 

    Apart from the above, one time charges, on account of unearned increase will be as follows:-

Category	One time charges for all allotments upto 2001 including allotments of 1993	One time charges for allotments for 2002 and for subsequent allotments
‘A’	Rs.3.00 Lakh	Rs.2.50 Lakh
‘B’	Rs.2.25 Lakh	Rs.1.70 Lakh
‘C’	Rs.1.70 Lakh	Rs.1.30 Lakh

   

    As per para (ix) page 6 “after the expiry of scheme i.e. after 30.06.2019 (extended upto 31.01.2020), unearned increase and stamp duty as applicable as per Act/Rules shall be payable by the occupant/transferee”.

 

         It is clear that after expiry of scheme, unearned increase and stamp duty as applicable as per Act/Rules shall be payable by the occupant/transferee. The scheme only expired for the purpose of Composition Fee and Unearned Increase and rest of the terms and conditions as mentioned in Annexure “A”, “B”, “C” and “D” remain the same. As per Annexure “D” of the said notification/scheme, it has clearly been mentioned that the documents required by the RCS Office for grant of permission/NOC for Sub Conveyance Deed/Sub Lease Deed of Flat/Dwelling Unit on the basis of GPA/SA/WILL whose mutation has not been entered into the record of RCS or entered into the record after 11.10.2011 and as per Annexure “D” Sr.No.3, it has clearly been mentioned that “Copy of demand draft of Rs.25,000/- in favour of the society as processing fee charges for transfer of flat/dwelling unit".

 

    It is stated that land to the OP was allotted by Chandigarh Housing Board on Lease Hold Basis and later on it was converted into Free Hold Basis. The Chandigarh Administration issued notification on 08.07.2020 and amended the Chandigarh Estate Rules 2007 and given relief of unearned increase on free hold site. Hence, there is nothing contrary while charging Rs.25,000/- as processing fee from the complainant. In view of above, a prayer for dismissal of the complaint has been made by OP.

3]       Replication has also been filed by the complainant controverting the assertions of OP as made in their written version.

4]       Parties led evidence in support of their contention.

5]       We have heard the complainant in person and have gone through entire documents on record.

 

6]       The main plea of the complainant is that OP failed to provide the copy of notification/guidelines of Chandigarh Administration (Finance Department) which authorized the President/Secretary of the Cooperative Societies to demand and accept Rs.25,000/- as processing fee for the execution of Conveyance Deed.

 

7]       The OP, alongwith its written version, has attached copy of Notification No.31/1/452-UTFI(4)-2018/21050 dated 14.11.2018 (Annexure OP/I) issued by Chandigarh Administration Finance Department (Estate Branch). The relevant para No.(vi) at Page 5 of the Notification states:-

“there are many flats which have been transferred on the basis of GPA/SA/WILL, without execution of conveyance deed, as a result the stamp duty for such conveyance/transaction could not be taken. Now, it may not be possible to register the conveyance deed on previous transaction dates, hence, the following lumpsum compensation fee be recovered from the present occupant falling in this category before execution of conveyance deed.

 

Type of Flats	In case one GPA/SPA/WILL transfer has taken place	In case two or more GPA/SPA/WILL transfers have taken place
Category “A”	Rs.75,000/-	Rs.1,50,000/-
Category “B”	Rs.50,000/-	Rs.1,00,000/-
Category “C”	Rs.25,000/-	Rs.50,000/-

 

Apart from the above, one time charges, on account of unearned increase will be as follows:-

 

Category	One time charges for all allotments upto 2001 including allotments of 1993	One time charges for allotments for 2002 and for subsequent allotments
‘A’	Rs.3.00 Lakh	Rs.2.50 Lakh
‘B’	Rs.2.25 Lakh	Rs.1.70 Lakh
‘C’	Rs.1.70 Lakh	Rs.1.30 Lakh

 

    Para No.(ix) at Page 6 of the Notification dated 14.11.2018 states:-

“after the expiry of scheme i.e. after 30.6.2019, unearned increase and stamp duty as applicable as per Act/Rules shall be payable by the occupants/transferee”

 

    The scheme only expired for charging Composition Fee & Unearned Increase and rest of the charges i.e. Collectorate, Processing Fee etc./terms & conditions as mentioned in Annexure ‘A’, ‘B’, ‘C’ and ‘D’ of the Notification dated 14.11.2018 remain in force.  

 

    Annexure ‘D’ of the Notification dated 14.11.2018 clearly states:-

“documents required by the RCS Office for grant of permission/NOC for Sub- Conveyance Deed/Sub- Lease Deed of Flat/Dwelling Unit on the basis of GPA/SA/WILL whose mutation has not been entered into the record of RCS or entered into the record of RCS after 11.10.2011”

 

    Further, Sr.No.3 of Annexure ‘D’ of the Notification dated 14.11.2018 clearly states:-

“Copy of demand draft of Rs.25000/- in favour of the Society as processing fee charges for transfer of flat/dwelling unit”

 

8]       Taking into consideration the above discussion & findings, it is safe to hold that there is no deficiency in service or adoption of unfair trade practice by the OP as the OP charged Rs.25,000/- as per Notification No.31/1/452-UTFI(4)-2018/21050 dated 14.11.2018 issued by Chandigarh Administration Finance Department (Estate Branch). The complaint being meritless is liable to be dismissed and accordingly the same is dismissed.

 

9]       The pending application(s) if any, stands disposed of accordingly.

 

        The Office is directed to send certified copy of this order to the parties, free of cost, as per Rules under The Consumer Protection Rules, 2020. After compliance file be consigned to record room.

Announced

10.12.2024                                                               

Sd/-

 (AMRINDER SINGH SIDHU)

PRESIDENT

 

 

Sd/-

 (BRIJ MOHAN SHARMA)

MEMBER

as