KDA asked to pay 7% interest to buyers..

The District Consumer Forum asked the Kanpur Development Authority (KDA) to pay 7% interest for illegally keeping with itself the amount belonging to the consumer. It asked the KDA to pay Rs 5000 to the complainant towards court expenses. A Kanpur-based woman Kanti Singh on Feb 27, 2016 applied to the KDA for allotment of a flat. After allotment of the flat, she paid 10 per cent of the total cost of the flat Rs 4,23,000. Afterwards, she availed bank loan and paid the balance amount of Rs 36,42,000.

When requested the KDA for allotment of the flat, the KDA ignored her request, but offered to give another flat instead of the flat of her choice. She refused to take the other flat and asked KDA to return her money. After two years, the KDA returned Rs 40,65,600. Kanti Singh moved the district consumer forum seeking justice. She said that the KDA kept her money for two years with it violating the rules. Therefore, she urged the consumer forum for direction to KDA to pay her interest on the amount for the two year period. The forum concurred with her contention and asked KDA to pay 7% interest on the amount for the two year period.