The District Consumer Disputes the Redressal Commission in Ludhiana penalized the GLADA's chief administrator for failing to deliver a plot with a clear title and basic amenities to complainant Ms. Sushma Lata Bansal. Bansal was allotted a 95 square yard plot in the year 2019 and paid 25% of the cost. Despite this, GLADA did not provide essential services like water and roads and misled Bansal about the plot's legal status, which is sub judice. GLADA also ignored Bansal's requests for resolution and refund. The commission deemed GLADA's actions deceptive and its demand to deduct 10% of Bansal's deposit illegal.
The District Consumer Disputes Redressal Commission in Ludhiana has penalized the chief administrator of the Greater Ludhiana Area Development Authority (GLADA) for failing to deliver a plot with clear title and basic amenities, constituting a deficiency in service and unfair trade practices. The complainant, Sushma Lata Bansal from Urban Estate Phase Two, Patiala, was allotted a 95 square yard residential plot under the 80-20 scheme on a freehold basis through a draw of lots held on October 14, 2019.
The plot's tentative price was INR 28,92,750, of which Bansal paid 25% (INR 7,23,188) within the stipulated period. The remaining 75% was to be paid in six half-yearly installments starting from May 1, 2021.
According to the allotment letter, the possession of the plot was to be handed over within 90 days of the letter's issuance, provided that 25% of the tentative price had been paid. If possession was not taken within this period, it would be deemed to have been handed over after the expiry of the said period.
Bansal reported that GLADA failed to deliver effective possession of the plot and did not provide essential amenities like water supply, sewerage, roads, and parking. Moreover, she alleged that GLADA deceived her by allotting a plot with a defective and sub judice title, with the authority also being a respondent in a case pending before the civil judge (junior division) in Ludhiana. Justice Raj Mohan Singh of the Punjab and Haryana High Court issued a status quo on GLADA's project on November 22, 2021, which remains in place.
Despite knowing this, GLADA intentionally allotted the plot and began charging interest on the balance 75% payment. Bansal accused GLADA of violating high court orders by floating a scheme and allotting plots without completing the necessary development work. She initially sought resolution by writing to the sole arbitrator-cum-chief administrator of GLADA on May 17, 2022, but received no response. Subsequently, she wrote another letter on July 4, 2022, requesting a refund of INR 7,81,043 with 12% interest per annum. Again, there was no reply.
At the commission hearing, no representative from GLADA appeared. The commission criticized GLADA for concealing material facts and inducing individuals like Bansal to invest their hard-earned money through misrepresentation and fraudulent practices. The commission found it odd that GLADA issued a letter on February 7, 2023, asking Bansal to deposit the original letter of intent, allotment letter, and payment receipts for a refund, minus a 10% deduction. The commission noted that GLADA did not cite any rule justifying this deduction and declared that one cannot benefit from their own wrongs, rendering the 10% deduction demand illegal and unenforceable against Bansal.
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