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BDA faces penalty for delay in site deposit refund

Bengaluru: A consumer court in the city recently ordered the Bangalore Development Authority (BDA) to pay over Rs 5,000 in compensation to a consumer for delaying the repayment of a site’s initial deposit amount by 14 months.

On December 28, 2015, Kishore Rao, 77, a resident of Chikkabettahalli, Vidyaranyapura Post, submitted an application for a 6 x 9-metre site in the Nadaprabhu Kempegowda Layout in the western outskirts of the city by paying the initial deposit amount of Rs 52,400.

In 2016, the BDA allotted sites to a few applicants but did not allocate a site to the complainant.

The complainant approached the 1st Additional District Consumer Forum, Bengaluru Urban, in January 2017 but the case was dismissed within a week “without appreciating the facts”. Rao then appealed to the state consumer commission on January 23, 2017, but withdrew the appeal in 2022 citing old age.

In February 2022, Rao submitted his bank details to the BDA via speed post so the authority could refund him the total deposit amount but it failed to do so despite repeated notices. He then approached the Bangalore Urban 2nd Additional District Consumer Disputes Redressal Commission in December 2022 for a refund.

The BDA ultimately issued a cheque for the full refund on July 14, 2023. However, during the case hearing on October 31 this year, the consumer commission noted that the BDA had paid the deposit after a 14-month delay since receiving the bank details from the complainant. Hence, the complainant was entitled to an interest of 7% per annum for the 14-month period delay.

The court ruled that the BDA was to pay a total of Rs 4,280 as compensation for the 14-month delay in repaying the deposit. It added that the BDA was also to pay Rs 1,000 as litigation expenses.

If the BDA fails to pay this compensation within 60 days, it must pay interest of 10% per annum on the total amount till realisation.

(Published 12 November 2023, 23:10 IST)

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