CHB fined for delay in refunding security deposit

Chandigarh Housing Board (CHB) has been penalised by UT Disputes Redressal Forum for delay in refunding the earnest money of Rs 1.22 lakh deposited by a city resident,without paying any interest on it.

Chandigarh Housing Board (CHB) has been penalised by UT Disputes Redressal Forum for delay in refunding the earnest money of Rs 1.22 lakh deposited by a city resident,without paying any interest on it.

President of the Forum PD Goel and members Rajinder Singh Gill and Dr Madanjit Kaur Sahota have directed CHB to pay Rs 10,000 as compensation to the complainant and Rs 5,000 as cost of litigation. CHB has also been directed to pay interest on Rs 1.22 lakh refunded to the complainant with effect from December 2010,at the saving bank rate. The directions were given by the Forum on the complaint filed by Chandan Lata,a resident of Sector 23.

In 2008,Chandan Lata applied to the Board for its Self Financing Housing Scheme for employees of Chandigarh Administration,and deposited Rs 1.22 lakh as earnest money. The Board returned the money to her in August 2011. The complainant demanded that the Board must pay her interest on the deposit.

In its reply,the Board stated that at the time of making the deposit,Chandan Lata had signed an undertaking that she would not claim an interest on the amount.

The Board added that a case had been filed in the High Court pertaining to the scheme. Hence,the draw of lots could not be held till November 2010. After completion of all the procedural formalities,the Board refunded the amount of in August 2011.

After considering the case,the Forum observed that the Board was under legal obligation to refund Rs 1.22 lakh to the complainant without interest on or before December 2010. Since the money was refunded in August 2011,the complainant was entitled to interest on it.

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