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Saurabh (Sr Consultant)     12 April 2015

Unethical price hike and delay by chhattisgarh housing board

Dear friends,

We booked a house in 2008 which was being developed by the Chhattisgarh Housing Board (CGHB), a Govt body. They had mentioned in their catalog a time period of 2 years to complete the project and hand over. Also, they mentioned a possible variance of 10% in the listed catalog price due to subsequent price rise of materials during the 2 years.

But, unfortunately as we know in Govt related work, they took 7 years to complete the project and finally have completed in 2015 and have issues the hand over letter to us a few days back. In the meanwhile, there was huge amount of corruption and neglect involved during these 7 years which led them to lose out money.

Now, we have the following issues:

1. They have mentioned an additional amount of Rs 5 lakhs supposedly for land development cost. It was no where mentioned in the catalog and has totally caught us unexpected and came as a big shock. We have now come to know from sources that CGHB has added this to cover up the huge losses due to corruption.

2. The quality of work is also sub standard and we are not completely satisfied. 

3. They have also added a service tax of Rs 1.5 lakhs which actually was already covered in the catalog price. This is again unacceptable.

4. The delay of 5 years has led to to mental harassment. But there is no compensation for that.

5. Since, we tried protesting against all this by meeting CM, etc we have still not paid the amont of Rs 5 lakhs. And now CGHB has sent a letter of cancellation of the allocation of the house to us. 

We are completely at a loss on what to do. It is becoming difficult to shell out such a huge amount of money. And, even if we do pay that money, they are asking us to sign a acknowledgement where it is mentioned that "I am accepting the possession of the house without any disputes".  Thus, once signed we can't appeal in court it seems. We have waited this long for the house and now wanted to shift asap.

Please suggest us what steps should be taken which will help us in the best possible way.

Is there a way, where we can appeal to the honorable court to give relief on the added amount and allow us to take possession, till the case is pending? Once the case is decided and court orders us to pay, we will definitely do so. 

How much time it would take to give us such a temporary relief?




 2 Replies

A.Radha Sampath (Advocate)     12 April 2015

It is true that you are put to hardship by not being handed over in correct time and for the correct mentioned price by the Housing Board. But the Govt. projects always take that time and at the time of sanctioning and allotting the houses they make you sign regarding everything. Please check before you want to take any appropriate action because your legal costs would almost amount the same finally.

Saurabh (Sr Consultant)     14 April 2015

Hi Radha,

We will fight as a group. We are 2000 individuals affected. So, please suggest us next set of actions to be taken to get justice.




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