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Mr.R.Selvaraj of Coimbatore was allotted a plot on hire purchase Scheme in Ganapathy Phase I Coimbatore by the Tamilnadu Housing Board in the year 1991. The provisional order was confirmed on 27-1-1993.


The tentative cost during allotment was fixed as Rs.76, 500. The amount of advance and the monthly instalments were finalised and a lease-cum-sale agreement was executed by the Housing Board in favour of the said party.
Thereafter Mr. Selvaraj paid all the instalments without any default till 4-5-2002. After the completion of payment, he requested the Housing Board to execute the Sale deed in his favour. But the Housing Board did not take any steps to execute the sale agreement.

Mr.Selvaraj tried his best to resolve the dispute by approaching higher authorities of the Housing Board. In these processes, 9 years have passed and he received a communication letter demanding a sum of Rs. 1,35,400 for the execution of sale deed. The amount was said to be the difference between the tentative cost and the final revised cost of the plot. The party felt that the revision of cost was neither justified nor legal and was done without any proper reason. Mr. Selvaraj decided to register a complaint with the District Consumer dispute Redressal Forum , Coimbatore.

After the final hearing, an order was passed stating that it was not legally permissible to enhance the cost of the plot as the Housing Board failed to produce any document to show that the incremental price was paid to the person from whom the land was acquired. Further as the entire cost was paid by the allottee without any default and the sale deed was not executed by the opposite party in spite of complete payment, it would prove that the practice adopted by the Housing Board amounts to an unfair practice.

As a result, the Forum directed the opposite party

  • to execute the Sale deed
  • to pay a sum of Rs. 10,000 as compensation for mental agony caused to the party and
  • to pay a sum of Rs. 1,000 towards the cost of proceedings within a period of two months from the date of the order.

This final verdict was pronounced in favour of Mr. Selvaraj on 21st October2013 after 11 years of his struggle at various levels.

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