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Housing Board demand for additional cost stayed

Our Legal Correspondent

Chennai , Sept. 26

A demand notice issued by the Tamil Nadu Housing Board, Coimbatore Housing Unit, asking allottees of HIG (high income group) houses under an outright purchase scheme, to pay Rs 63,300 towards additional land cost, interest, penal interest, etc. has been stayed by the Madras High Court.

Court ruling

Responding to a batch of petitions filed by the allottees who, inter alia, contended that the Board had no authority to demand the impugned sum 15 years after the allotment of the houses, Mr Justice K. Raviraja Pandian ordered notice to the respondents - Chairman and Managing Director, TNHB, Chennai, and the Executive Engineer and Administrative Officer, Coimbatore Housing Unit.

On behalf of the petitioners, counsel Mr K.K. Muralidharan, said that the TNHB order of March 10 had confirmed that the house was allotted on February 1, 1990.

Since the house was facing a 60 feet road, an additional land cost of 25 per cent was payable, it said. The petitioners were asked to pay the sum with interest from March 2006 till date of payment of the revised cost.

According to the sale agreement, it was clear that the price of the property would be fixed by TNHB after taking into consideration the development charges, cost of amenities, etc. within 3 years from date of allotment.

Hence, the lapse on the part of the Board in belated intimation of the revised cost was illegal and arbitrary.

The petitioners prayed that since the impugned demand of the second respondent was arbitrary, illegal and unjustified, it should be stayed.

More Stories on : Real Estate & Construction | Courts/Legal Issues | Tamil Nadu

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