GMADA fined for charging extra interest from shop allottee

The Greater Mohali Area Development Authority (GMADA) has been slapped a penalty of Rs 10,000 for charging wrong interest from a shop allottee. The District Consumer Disputes Redressal Forum,Mohali,has further directed GMADA to refund Rs 3,972 as the extra amount charged to the Phase 1 resident.

Rajiv Kumar,a resident of Phase 1,was allotted a booth in February 2009 at the Phase 3B-1 market,for which he had paid 25 per cent of the sale price – Rs.94,050. The rest of the amount was paid in 4 yearly instalments with a 12 per cent interest. However,Kumar was made to pay interest on the first instalment from the date of draw of lots and not from the date of allotment. Kumar asked for the refund of the extra interest paid between the two dates as GMADA had later decided to calculate interest from the date of allotment.

Alleging that GMADA was deficient in services,Kumar asked for a refund of Rs 14,106 as the excess interest amount incurred from him. Holding that GMADA was not entitled to retain the interest charged on the date prior to the date of allotment,the forum directed to pay the entire amount back to the complainant.

Whereas,an amount of Rs 10,134 was already paid by the opposite party during the pendency of the complaint,the forum observed that it was short by Rs 3,972,which should be refunded with an interest of 9 per cent within a month’s time.