The society—Victoria Jubilee Dispensary Society—had applied for some constructions in its premises for which it deposited Rs 1.73 crore with the AMC
The Gujarat State Consumer Disputes Redressal Commission has come down heavily on the Ahmedabad Municipal Corporation (AMC) for not refunding the entire deposit made by society while applying for construction permission, which was eventually rejected by the civic body. The commission has also imposed interest of Rs 48.51 lakh on the civic body for the delay in processing the complete refund.
As per the case details, the society—Victoria Jubilee Dispensary Society—had applied for some constructions in its premises for which it deposited Rs 1.73 crore with the AMC under various heads for the necessary permission in 2008. The application was rejected in 2009.
Thereafter, the society moved an application for the refund of the amount. However, only Rs 1.54 crore was refunded after around 4 years of the deposit. When all its efforts to get a refund of the remaining Rs 19.12 lakh failed, it approached the commission against the civic body.
During the hearing of the dispute, the corporation tried to make a lame submission that there are no provisions under the Bombay Provincial Municipal Corporation Act or Rules that provides that if an application for construction is rejected, the corporation is duty-bound to refund the amount. It was also contended that after the permission was rejected in 2009, the society only in 2012 placed the original receipts and affidavit after which the refund was paid.
On the contrary, the counsel for the society CR Kothari argued that once the development permission is rejected, the amount deposited by the society ought to have been refunded by AMC. It was also argued that it was a case of deficiency of service on the part of AMC.
The court also took note of the fact that AMC's officials have submitted that the society was liable to get a refund of Rs 1.54 lakh as per rules and if it seeks construction permission in the future, the remaining amount will be adjusted.
Following this, the court remarked that the statement made by a responsible officer of AMC provides that if a person applies for construction permission and if the same is rejected, he would not be entitled to get the entire refund and if he wants the refund of the entire amount, he would have to make other constructions to settle the remaining amount. "This is a sorry state of affairs for a public body like AMC," the commission remarked.
Eventually, the commission directed the civic body to pay an interest of Rs 37.04 lakh at the rate of 6% per annum for the delay of 4 years in refunding Rs 1.54 crore. It also directed the civic body to pay the remaining amount of Rs 19.11 lakh along with an interest of Rs 11.47 lakh at the rate of 6% for the past 10 years. The commission also clarified that the total amount of Rs 67.62 lakh will have to be paid to the society within 30 days, or else interest at the rate of 8% will be applicable.
LEGAL CASE
- The society—Victoria Jubilee Dispensary Society—had applied for some constructions in its premises for which it deposited Rs 1.73 crore with the AMC
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