The National Consumer Commission has ordered the Maharashtra Housing and Area Development Authority (MHADA) to refund approximately Rs 1.22 crore to a Mumbai housing society. This decision comes more than 24 years after a dispute began over construction costs related to a land lease agreement.
The commission found that MHADA had engaged in a “gross deficiency in service and an unfair trade practice” by unilaterally revising agreed-upon financial terms. The dispute centered on a plot where the housing society was required to construct a municipal market. MHADA attempted to impose additional financial liabilities on the society after the lease agreement was finalized, which the commission ruled was not permissible.
MHADA had demanded a total of Rs 4.68 crore, largely towards interest and revised construction costs. The commission rejected this demand, stating that MHADA could not unilaterally alter the agreed financial terms. The commission directed MHADA to refund Rs 1.09 crore paid under protest and an additional Rs 12.79 lakh erroneously included as ground rent. These amounts will accrue simple interest until refunded.
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Source: indianexpress.com
