Hyderabad: Forum asks housing board to refund complainant’s money

Osman then approached the Hyderabad Consumer Forum-3 for justice and he got it eventually.
Osman Shaik decided to book one in January 2014 and made an initial payment of Rs 1.45 lakh for a house at Red Hills in the city. (Photo| EPS)
Osman Shaik decided to book one in January 2014 and made an initial payment of Rs 1.45 lakh for a house at Red Hills in the city. (Photo| EPS)

HYDERABAD: The consumer forum recently came to the rescue of Osman Shaik, a resident of Kothapet in the city, whose money was locked away with the State Housing Board. In December 2013, the then AP Housing Board had just announced a housing scheme for people of lower income group (LIG). Osman Shaik decided to book one in January 2014 and made an initial payment of Rs 1.45 lakh for a house at Red Hills in the city.

But, the scheme was scrapped soon afterwards due to some legal issues as claimed by the board. The board asked Osman to apply for a refund. But it was not until 2016 that the offer of refund was made. Even then, the board did not offer to pay interest on Osman’s money it had kept with it for over two years. Osman then approached the Hyderabad Consumer Forum-3 for justice and he got it eventually. The forum ordered AP Housing Board to refund Rs 1,45,500 and an additional amount of Rs 70,000 which includes 7 per cent interest, a compensation of Rs 20,000 and Rs10,000 towards legal expenses.

Osman, in his complaint, said that the amount deposited by him was of no use: neither to get a LIG house in Red Hills nor to get interest. The board countered him before the forum with a series of arguments referring to previous judgments and even said that the issue was a civil dispute and not a consumer case. “The board had the right to take up or cancel or modify the scheme without further information,” it contended.

However, Nimma Narayana, president of the forum, said the board may have had several clauses for all contingencies in case of cancellation of the project but there was nothing to save the skin of the complaint. “He paid a huge amount to the opposite party and has not gained either by way of the housing scheme or interest on the amount,” Narayana said.

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