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MUDA directed to refund registration charges after allotting wrong site to bidder in e-auction – Mrit News

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Even though the Mysuru Urban Development Authority (MUDA) allotted an alternative site to a resident of Mysuru, who had been given a wrong site during an e-auction, it has been directed by the Mysuru District Consumer Disputes Redressal Commission to refund the registration charges that the allottee had borne for the earlier site.

H.R. Prashant, a 38-year-old resident of Belavadi on Hunsur Road in Mysuru, had been allotted a site measuring 5.8 x 7.6 metres in Hebbal Second Stage in Mysuru by bidding for ₹14.65 lakh against the quoted price of ₹13.05 lakh during an e-auction by MUDA that was registered after he obtained a loan in 2018. But, when he went to put up a compound wall around his site, a person turned up and claimed that he was the owner of the site. When the matter was referred to MUDA, he realised that he had been allotted a site that did not belong to MUDA. But, MUDA had not only registered the site in Mr. Prashant’s name, but also created a khatha and even collected property tax.

The MUDA suggested to Mr. Prashant to cancel the sale deed and the loan arrangement and seek allottment of an alternative site. Subsequently, he was allotted a higher dimension site measuring 6 x 9 metres in Hebbal Second Stage for a sum of ₹ 17.94 lakh in March 2021. The allottee bore the registration charges and other incidental charges including taxes while MUDA transferred the khata in his name and delivered possession.

Mr Prashant, however, approached the Commission in November 2021 and alleged deficiency in service by MUDA and sought payment of ₹16.33 lakh to make good all the costs he had incurred for the earlier site. Though the Commission dismissed as “exaggerated and hypothetical” the demand made by the complainant for payment of ₹16.33 lakh, it upheld the complainant’s charge of deficiency in service by refusing to refund the cost borne by the allottee for the registration of the deed and its cancellation in respect of the earlier allottment.

Hence, the Mysuru District Consumer Disputes Redressal Commission headed by its President B. Narayanappa and members Lalitha M.K. and Maruthi Vaddar in its order dated July 30, 2022, directed the MUDA to refund a total of ₹ 2,05,774 including ₹74,870 towards stamp duty of registration, ₹14,650 towards registration charges, ₹10,000 for incidental and miscellaneous expenses, ₹8,549 for site and khata charges and ₹97,705 towards charges for cancellation of title deed.

MUDA has been directed to refund the amount within two months from the date of the order with interest at 6 per cent per annum from March 23, 2021 till its payment. Further, the MUDA has also been directed to pay a compensation of ₹5,000 towards mental agony caused to the complainant and ₹3,000 towards the cost of litigation within two months from the order.


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