The Respondent/ Complainant applied to the Appellant, for allotment of a residential plot measuring 454.17 square yard at Janta Township in 90-91, SAS Nagar Mohali.  Along with the application, he deposited two cheques of Rs.10 lacs each, both dated 26.09.2011.  One cheque when presented to the Bank was encashed, whereas the other cheque got dishonoured.  Vide letter dated 08.11.2011 stated to have been received by the Respondent/ Complainant on 16.11.2011, the appellant, referring to dishonour of the cheque of Rs.10 lacs, required him to present a fresh cheque within seven days of issue of communication.  He was informed that on his failing to do so the appellant would be left with no alternative but to proceed as per prevailing provision of law.

(2)      In response to the letter dated 08.11.2011 received by him on 16.11.2011, the Complainant/ Respondent, stated that he had come to know that the booking amount taken from him was in excess of deposit permissible as per Punjab Apartment and Property Regulation Act, 1995 and therefore, he had stopped the payment of that cheque and issue a fresh cheque dated 27.09.2011 for a sum of Rs7,86,680/-  towards the initial cost payable as per Punjab Apartment and Property Regulation Act Regulation.  It was further stated that since the appellant had refused to the cheque of Rs.7,86,680/- the complainant had filed a petition before the Consumer Disputes Redressal Commission  on 03.11.2008 in which notice had been issued to the appellant company for 17.01.2012.

(3)      The prayer made in the complaint was to direct the appellant company to execute and register sale deed of plot No.998 in SAS Nagar, Mohali in favour of the complainant @ 16,000/- per square yard and put the complainant in possession of the said plot.  The complainant also sought compensation from the appellant company.  The alternative prayer made in the complaint was to refund the amount of Rs.10,30,000/- which the complainant had paid to the appellant  along with compound interest @ 24% per annum.

(4)      The complaint was resisted by the appellant, inter alia, on the ground that the complainant was not a Consumer within the meaning of Consumer as per Section 2(1)(d) of the Consumer Protection Act, 1986.  On merits, it was stated that the appellant company had already obtained exemption from the provision of Punjab Apartment and Property Regulation Act, 1995 vide notification dated 04.08.2005 issued by the Housing Department of Punjab, Government of Punjab.  According to the appellant, in fact, the plot was booked @ 14,000/- per square yard and not @ 16,000/- per square yard.  It was further stated in the reply that the plot in question had already allotted by the appellant to Mr.Hridaypal on 19.11.2011.

(5)      Section 44(2) Punjab Apartment and Property Regulation Act, 1995 to the extent it is relevant reads as under:-

“(2) If the State Government is of the opinion that, the operation of any of the provisions of this Act, causes undue hardship, or circumstances exist which render it expedient to do so, it may exempt, by a general or special order, any class of persons or areas from all or any of the provisions of this Act, subject to such terms and conditions as it may impose.”

(6)      Vide notification No.18/50/2003-IIG2/7666 dated 04.08.2005, the Government of Punjab, Department of Housing and Urban Development, purporting to act under the industrial policy 2003 and noticing that the appellant company had already been granted by the Punjab Department of industries and commerce for setting up an industrial estate in an area of about 300 acres in Mohali, District Ropar, exempted the aforesaid industrial estate in the proposed sectors of SAS Nagar, Mohali from all the provisions of Punjab Apartment and Property Regulation Act, 1995 except Section 32, subject to conditions laid down in the notification.  A legal agreement dated 24.06.2005 was also executed between the appellant company on one hand and  Government of Punjab through Secretary, Industries & Commerce on the other hand.  The said agreement required the appellant company to set up a mega industrial project in 500 acres of land.  One park in an area of 300 acres was to be set up at Mohali with investment of Rs.264.80 crore and the other in area of 200 acre in District Ludhiana with an investment of Rs.156.80 crore, thereby making a total investment of Rs.421.60.

(7)      It would thus be seen that the Government of Punjab exempted the Industrial estate set up by the appellant company in an area measuring about 300 acres in Mohali, from the provisions of the Act except section 32 thereafter.  The plot in question is stated to be situated in the Industrial estate, set up by the appellant company in Mohali in District Ropar, Punjab. Though, in terms of the Section 6 of the Punjab Apartment and Property Regulation Act, 1995, a promoter entering into a transaction for sale for plots in a colony, could not have accepted more than 25% of the sale price, before entering into a sale agreement with a purchaser, the said requirement was not applicable in the present case, in the view of the exemption granted by the Government of Punjab in the exercise of the powers conferred upon it Section 44 of the said Act.

(8)      The Learned counsel of the complainant submits that the appellant company did not comply the conditions subject of which by the Government of Punjab had granted the exemption and therefore, the benefit of the said exemption would not be available to it.  In my view, as far as Consumer Forum is concerned, it cannot go behind such an exemption granted by the Government of Punjab.   If the appellant company had not complied with the conditions imposed by the Government of Punjab, the appropriate remedy for him was to approach the said Government for withdrawing the exemption on account of the alleged breach of the terms and conditions.

(9)      The learned counsel for the appellant company categorically states on instructions that the plot in question from part of the industrial estate in which exemption has been granted to the appellant company by the Government of Punjab.

(10)    Considering that the complainant / respondent did not make payment in terms of his agreement with the appellant company, the appellant company was entitled in law to cancel the allocation made to him and allot the plot in question to some other applicant.  However, in all fairness, the appellant company must refund the amount which it had received along with an appropriate interest.

(11)    The appeal is therefore, disposed of with the following directions :-

1. The amount of Rs.10 lacs which the appellant has deposited with this Commission be paid to the complainant along with interest which has accrued on that amount.
2. The appellant shall pay the balance principal amount of Rs.30,000/- to the complainant within four weeks from today.
3. The appellant shall also pay interest @ 18% on the amount of Rs.10 lacs, from the date when the said amount was received by it till the date Rs.10 lacs were deposited with this Commission.  It shall also pay interest on the amount of Rs.30,000/- @ 18%  per annum, from the date of receipt of the amount till it is paid.

(12)    Since, this order has proceeded on the statement of the learned counsel for the appellant that the plot in question forms part of the industrial estate in respect of which exemption was granted to the appellant under Section 44(2) of Punjab Apartment and Property Regulation Act, 1995, the complainant shall be entitled to seek recall of this Court, in case it is found to be otherwise on verification from the concerned Department of the Government of Punjab.  The statutory amount deposited by the appellant be returned to him, along with interest which may have accrued thereon.