Chandigarh Housing Board fined Rs 50,000

Chandigarh, January 17

Setting aside the decision of the district forum-I, the State Consumer Disputes Redressal Commission has slapped a fine of Rs 50,000 on Chandigarh Housing Board (CHB) for its failure to maintain the record resulting in accrual of interest on the due amount for the shop allotted to a Sector-46 resident.

State Commission president Justice Sham Sunder and members Neena Sandhu and Jagroop Singh Mahal while setting aside the impugned order observed, “We are, however, of the opinion that instead of directing the opposite party to refund the whole amount of Rs 2,06,109 to the complainants, interest of justice would be met if we direct that a sum of Rs 50,000 be paid by the opposite party as compensation to the complainants. The opposite parties shall
also pay Rs 5,000 as costs of litigation.”

The complainant, Saroj Dogra, submitted that she along with her late husband purchased a booth in Sector 49-A, in the name of their son Nipun Dogra from the CHB for Rs 15.70 lakh in an auction held on October 30, 2002. They deposited 25 per cent of the bid money along with Rs 71,667 towards ground rent for first nine years within time and took the possession on December 18, 2002. They were required to pay 75 per cent of the bid price which was Rs 11,77,500 either within 30 days (without interest) or with 18 per cent interest per annum in three instalments payable up to December 1, 2005. After paying 75 per cent, they approached the CHB to issue a ‘No Due Certificate’. The CHB asked them to deposit another sum of Rs 2,62,000 towards interest which was deposited by them on September 18, 2004. However, to their utter surprise, the CHB instead of issuing the ‘No Due Certificate’ informed on June 28, 2010, that it had not deposited the balance 75 per cent payment of bid money. After they gave all details of the amounts deposited, the CHB on August 9, 2010, asked them to deposit Rs 3,83,789 (Rs 1,77,680 as principal and Rs 2,06,109 as interest) which was deposited by them in protest on September 15, 2010.

The counsel for the CHB pleaded that the complainants deposited the instalments in piecemeal manner at their own sweet will and evidently in contravention of the payment schedule. Thus, they were rightly burdened with the interest and they could not escape its payment being a contractual obligation. It was further pleaded that ‘No Dues Certificate’ could not be granted to the allottee after reconciliation of the accounts an amount of 3,83,789 was found due against them.

The commission further ordered, “CHB would be free to recover the amount of compensation, interest and costs from its officials who were required to maintain the record but did not send any reply and rather misplaced the application, of course after following proper procedure as required under the Service Rules.”

Portugal SC rejects plea on Salem’s extradition

New Delhi/Mumbai, Jan 17

Rejecting the CBI's plea, Portugal's Supreme Court upheld its lower court's decision that the extradition treaty with India was violated in Abu Salem's case when new charges attracting death penalty were slapped against the underworld don.

Reacting to the order, the CBI today clarified that the Supreme Court has not cancelled Salem’s extradition and that only a technical point had been raised. It also said the order is not expected to have any repercussions on the status of Salem and on the ongoing trial against him in India.

The Supreme Court gave its order on Saturday while dismissing a CBI appeal against the lower court decision that had held that rules had been breached in the extradition of 43-year-old Salem in 2005.

A CBI spokesperson said in New Delhi that the option of filing an appeal before the Constitutional Court in Portugal was available to the investigating agency and was likely to be exercised.

Following the pronouncement of the SC order, Salem, who is behind bars, moved a TADA court in Mumbai seeking closure of the trial against him in the 1993 Mumbai blasts case, saying continuing it will be illegal. His plea is expected to come up tomorrow.

Salem, the prime accused along with underworld don Dawood Ibrahim in the 1993 Mumbai serial blasts, and his girlfriend Monica Bedi were extradited to India on November 11, 2005, after a marathon legal process in Portugal lasting three years.

The extradition of Salem, who was also wanted in various cases including the murder of noted film producer Gulshan Kumar, came after an assurance by Indian government to Portugal that he would not be given death penalty, a key requirement in extradition proceedings in Europe.

New Delhi had assured Portugal courts fresh charges against Salem attracted less jail term than the offences for which he had been extradited, sources said. 

Govt favours 49% FDI in aviation

New Delhi, January 17
The government will soon set the ball rolling on allowing foreign airlines a 49% stake in cash-strapped Indian carriers.

The issue was discussed today at a meeting attended by Finance Minister Pranab Mukherjee, Civil Aviation Minister Ajit Singh and top officials from related ministries and banks. Many airline majors, including Kingfisher Airlines promoter Vijay Mallya, have been demanding foreign investment in cash-strapped carriers.

Leading global consultancy company KPMG has welcomed the move, terming it as "much needed relief for the Indian carriers."

The government also decided to immediately release Rs 150 crore as payment of a portion of pending salaries and allowances of Air India employees, who went on agitation only two days ago.

"The government had decided to release sufficient funds to pay at least some part of wages and PLI (productivity-linked incentives)," said Ajit Singh. As additional major relief for airlines, a committee of secretaries has recommended direct import of jet fuel, which constitutes 40 to 50% of an airline's operating costs.

At present, in some states, airlines have to pay taxes ranging up to 24 % on ATF. The issue, along with the one related to restructuring of the debt of Air India, would be placed before a GoM, Singh said. The Civil Aviation Ministry will now prepare a Cabinet note allowing foreign airlines a 49% stake in Indian carriers.

"49% FDI is already there. The question was to allow (international) airlines to participate in the FDI. The Committee of Secretaries has also recommended that FDI limit should be raised to 49%," Singh said, hoping that FDI would help the industry survive the current financial crisis. "We all know that the aviation industry is under a lot of stress," he said.

SBI chairman Pratip Chaudhuri said different options were discussed for loan restructuring for Air India. However, further lending to the airline would be difficult.