BENGALURU: To ensure transparency in the allotment of its sites, the Bangalore Development Authority (BDA) will e-auction its site. But what happens if during the e-auction, the buyer is not in a position to take possession of the site and the BDA declines to refund the deposit paid?
In a landmark judgment, the Urban Consumer Redressal Forum has directed to return the EMD amount to a person who won a site through an e-auction, but who was not in a position to take possession. Along with the refunding of the EMD, the forum also slapped Rs 10,000 as a fine on BDA for causing problems.
It all started with Mr. Ramesh JS, a resident of Govindarajnagar in the city, making a bid for a BDA site in Jayanagar 9th block in an e-auction conducted by the BDA in the year 2012. As part of the bidding process, he paid Rs 1,01,683 as EMD amount. BDA officials informed him that the site for which he was bidding had a litigation fee and was ready for occupation.
Eventually he won in the bidding. But to his surprise, a high tension line of BESCOM was passing through the site making construction very difficult. He immediately requested the BDA to cancel the site allotment and return the EMD amount. But BDA refused to refund the EMD amount, citing the e-auction rules and stating that the High Tension Wire would be replaced on the encroachment in the next site when it was cleared.
Aggrieved by this, Mr. Ramesh JS moved the Urban Consumer Forum seeking its help on immediate refund of the amount. Based on the argument and documents put forth by both the petitioner and BDA, now the forum has directed the BDA to refund the EMD amount with an annual interest of 18% beside Rs 10,000 as compensation and Rs 5,000 as the cost of the litigation.
In its order, the forum has observed that BDA misled the bidders stating the site is an open area. “This decision of the forum expected is to help several bidders who participate in the e-auctions conducted by various government agencies. Generally government agencies claim that EMD amounts are not refundable. But the forum judgment has proved that if the concerned authorities do not follow the bidding process properly they are liable for refund of the EMD amount,” said Mr. Avinash Baliga, a consumer advocate.
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