Hous­ing so­ci­ety fined R15,000

Hindustan Times (Chandigarh) - Live - - IN & AROUND -

PANCHKULA: The Dis­trict Con­sumer Dis­putes Re­dres­sal Forum, Panchkula, has pe­nalised the Narain­garh-based Shiv Co­op­er­a­tive House Build­ing So­ci­ety Rs 15,000 and told to re­cal­cu­late the amount to be paid on a 20-year-old-loan taken by Gur­bax Singh of Ambala. Through its mem­ber SP Singh, the forum ruled, terms and con­di­tions of the con­tract are gov­erned by loan agree­ment and not by mort­gage deed". The judg­ment said, “Ac­cord­ingly, we hold that the so­ci­ety can­not charge any pe­nal in­ter­est at 2.5% in ad­di­tion to the nor­mal rate of in­ter­est in case of de­fault. Be­sides, we find that in the ab­sence of any spe­cific agree­ment, the so­ci­ety can­not charge com­pound in­ter­est at the time of re­cov­ery of loan. Thus, we find no jus­ti­fi­ca­tion in the stand taken by the so­ci­ety that af­ter ad­just­ing the amount paid by the com­plainant, the to­tal amount out­stand­ing against him comes to Rs 6,28,375.”

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