This Article is From Nov 08, 2010

New Delhi: Real estate company to pay 1.2 lakh for not allotting flat

New Delhi: The Delhi State Commission has directed real estate giant Ansal group to pay Rs 1.2 lakh as compensation to a woman who had complained that she was not allotted a flat despite paying the advance money.

The commission, however, refused to revoke the cancellation of allotment.

Complainant Sharda Rani Arora had stated that she had paid an advance money of Rs 2.91 lakh to book a flat in Tronica City in Ghaziabad in 2001. The company informed her in 2006 that the flat has been alloted to a third party as she failed to pay the rest of the amount of around two lakh as required under the agreement.

The company had transferred the flat to a third party which had paid Rs 20 lakh.

Aggrieved by the cancellation of her flat, she filed a complaint against the company before the district consumer court which directed it to pay her a compensation of Rs.1 lakh along with Rs 10,000 as cost.

Not satisfied with the order, she approached the State Commission seeking restoration of the allotment and sought a compensation of Rs 12 lakh.

The commission refused to revoke the cancellation on the ground that the third party has not been impleaded in the complaint and no order can be passed against it in its absence.

The commission, however, directed the company to pay the compensation amount with an interest of 18 per cent.

"We allow the appeal to the extent that the respondent will pay compensation of Rs 1,20,000 as claimed by the complainant plus 18 per cent interest from the date of filing of the complaint till the date of payment," the commission bench comprising Justice B A Zaidi and member Salma Noor said.
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