HC asks CHB, Parsvnath Builders to clear stand on refund

Chandigarh, August 24
The Punjab and Haryana High Court has asked the Chandigarh Housing Board (CHB) and Parsvnath Developers Limited to make clear their stand on the issue of refunding the depositors.

The High Court has, in fact, asked their counsels to file detailed affidavits. Taking up the matter, the High Court asserted: “The dispute, in brief, is for the refund of amount deposited by the petitioner for the allotment of a plot. For reasons that need not be dilated, the project between Parsvnath Developers Limited and the CHB could not reach fruition, leaving the allottees without a flat and without hope of ever recovering their money.”

“As admitted by the CHB, they have received Rs 516 crore from Parsvnath Developers Limited towards the bid amount and Rs 81.93 crore from the allottees and deposited in an escrow account operated jointly by the builders and the CHB. The money in this account is to be shared in the ratio of 70:30 between the builder and the CHB. The counsels for Parsvnath Developers and the CHB are directed to file their respective affidavits with respect to the assertions,” the court held.

The developers and the CHB are in the dock before the Consumer Dispute Redressal Commission also for not repaying money to the depositors, despite orders.
One of the depositors, Sudeep Budhiraja, has again moved the Commission by filing an execution application against the developer and the CHB.
Acting on the application, the commission has issued notice to the respondents. The application seeks directions to the developer and the CHB to comply with the commission order of October 27, 2010.
In the application filed through counsel Naresh Kumar Bansal, Budhiraja has asserted that his application for repayment of money was decided in his favour on October 27, 2010. Directions were issued for the payment of amount with interest and compensation.

However, both Parsvnath and the CHB filed appeals before the National Consumer Dispute Redressal Commission.

On April 29, the national commission passed an interim order in favour of complainant and other depositors with a direction to the housing board to return 85 per cent amount to the depositors within six weeks.
Bansal added that the balance was to be deposited with the UT State Commission within eight weeks. The hearing on both the appeals before the national commission was also adjourned to September 8. However, both the parties failed to deposit the amount as per the interim order dated April 29. They even failed to pay amount with interest and compensation, as per order passed by the UT State Commission Chandigarh on October 27.