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HUDA fails to give 10% rebate, to pay Rs 9 lakh in damages

The society alleged that they had completed the construction of flats over the allotted land in January 2011.

By: Express News Service | Panchkula | May 2, 2015 3:15:47 am
HUDA, consumer redressal, housing society, chandigarh news, city news, local news, chandigarh newsline, Indian Express (Illustration: Pradeep Yadav)

The Panchkula district consumer redressal forum has asked the Haryana Urban Development Authority (HUDA) to pay Rs 9 lakh in compensation for not providing 10 per cent rebate to a group housing society.

Glory Fert Enclave Cooperative Group Housing Society, Sector 24, alleged that they had applied for a group housing scheme in 2005, which had been floated by HUDA, and were allotted land in Sector 24 measuring 2,000 per square metre at the rate of Rs 4,500 per square metre (Rs 90 lakh) in April 2008. The agreement between the parties stated that “if the society completes the construction within three years of the date of possession, 10 per cent rebate would be given on price of land”.


The society alleged that they had completed the construction of flats over the allotted land in January 2011. To avail the rebate, the complainant wrote to HUDA on January 6, 2011, but their application was rejected on the grounds that the outstanding amount of Rs 610 was due against the property after which, they cleared the outstanding dues.

However, HUDA later intimated them that due to unavailability of firefighting certificate, their application for availing rebate couldn’t be processed further. The society secured the firefighting certificate on June 9, 2011, and again approached HUDA.

However, despite repeated requests, HUDA did not provide rebate. The society then approached the forum with a complaint that HUDA refused to provide 10 per cent rebate despite fulfilling the norms.

HUDA in its reply to the forum alleged the complainant had applied for occupation certificate on March 31, 2011, which was rejected due to pending dues. The application for issuance of occupation certificate was also not accompanied by the mandatory firefighting certificate and thus, the amount could not be rebated.

On the day of the hearing, the forum, presided over by Dharampal, found the complainant to have presented all the necessary documentation for the rebate amount. The bench stated, “The attitude adopted by HUDA is not in accord with the ambience of an organisation which announces itself to be in the service of the masses. The grant of requested/entitled rebate would encourage the cooperative group housing societies to complete their construction in advance and provide shelter to the owners.”

The forum directed HUDA to pay Rs 9 lakh as compensation to the complainant and Rs 5,000 towards litigation costs within a period of 30 days.

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