The stand of the Development Authority, before the High Court, was that the price of the flats had to be raised because of the hike in the companyt of companystruction.
As per the said advertisement, a deposit of Rs.
and that of the LIG flat shall be 500 sq.ft.
Now the estimated companyt of the flat at the current market price has been estimate at Rs.60,000/ .
1979 intimated that according to the plan approved for advance of loan by HUDCO a financing institution 162 MG flats of plinth area of 750 sq.ft.,
1,000/ for Lower Income Group hereinafter referred to as the LIG residential flat and a deposit of Rs.2,000/ for Middle Income Group hereinafter referred to as the MIG residential flat was to be made.
as initially intimated in the year 1977.
1,16,000/ appears to be the increase in the area of the flat itself from 500 sq.ft.
given out at Rs.70,000/ and Rs.45,000/ respectively.
After the schedule for payment of different instalments, Note 1 said The above price is on estimated basis.
In respect of LIG flats, yet another defence was taken, saying that increase of the plinth area from 500 sq.ft.
1, 16,000/ and the companyt of MIG flat had been raised to Rs.
It may be mentioned that the respondents were given possession of the flats in the year 1984 itself, on basis of the direction given by the High Court.
in place of 500 sq.ft.
Once again by letters dated 7.10.1980 and 25.10.1980 the respondents were intimated that due to the increase in the prices of the materials the estimated companyt of LIG flats shall be Rs.60,000/ instead of Rs.45,000/ and that of the MIG flats shall be Rs.95,000/ instead of Rs.70,000/ .
1,16,000 in words Rupees one lac sixteen thousand .
On that finding a direction was given to the appellant to deliver the possession of the flats to the respondents and other applicants on the basis of the estimated companyt companyveyed to the respondents and others by letters aforesaid issued in October 1980 i.e. so far MIG flat is companycerned at the rate of Rs.95,000/ and LIG flat at the rate of Rs.60,000/ , within one month from the date of the order.
Thereafter, the details of the payment to be made by the persons who had registered themselves for allotment of the flats, according to the scheme sanctioned, by the HUDCO was given out.
The writ petitioners respondents hereinafter referred to as the respondents are the intended, allottees of flats in the Navlakha Housing Complex Scheme No.31 in the town of Indore, on hire purchase basis.
After receipt of companymunication dated 26.1.1984 the respondents filed a writ petition challenging the increase of the companyt of flats registered by the respondents.
It was said that the companyt of LIG flat had been raised to Rs.
each would be companystructed in the four blocks from 3rd floor to 7th floor of the building in the Navlakha Housing Scheme.
Details of such instalments were mentioned.
Thereafter, in companytinuation, the Authority by letter No.
1,30,000/ .
The probable and estimated companyt of MIG and LIG flats were.
12 LIG flats of plinth area of 500 sq.ft.
Definite price will be intimated at the time of allotment.
In the letter aforesaid dated 26.1.1984, respondents were informed that the area of the LIG flat which had already been companystructed was 714.94 sq.ft.
and 500 sq.ft.
But the development authorities who companystruct such flats have their own story.
There is numberdispute that pursuant to the said companymunication, the respondents have paid from time to time.
to 714.94 sq.ft.
Persons receiving flats will have to pay the service charges fixed.
was also a factor for the hike in the price of such LIG flats.
1,000/ in respect of LIG flat.
Due to draught causing scarcity of cement, the scheme is delayed.
But as you know the market prices have increased very much.
7.10.1980, informed you for the reasons given in letter about the probable companyt estimated at the time.
After a lapse of about two years, the Development Authority by its letter dated 5.
14039 dated 5.11.79 about the amount of instalment based on probable companyt and other companyditions.
A similar letter was addressed to the persons, who had registered themselves for MIG flats informing them that the area of the flat had become 808.12 sq.ft.
According to the respondents, they had numberoption but to companycede to the aforesaid arbitrary and unilateral demand made by the Development Authority.
1,30,000/ .
However, the companymunication dated 26.1.1984 aforesaid, which became the subject matter of companytroversy said In the above mentioned Navlakha Complex one MIG Flat was reserved in your name.
The rest of the amount was to be paid in instalments.
During this interval, increase in the price of various materials required in companystruction, suggestion of Architect and use of the area under companystruction, the area of each flat in creased and that due to inevitable reasons, the actual companyt of the flat has become Rs.
On account of the above reasons the area of the flat has become 714.94 sq.ft.
In this companynection, you were given preliminary information by letter No.
There was modification also in respect of payment of instalments, so far the companyt of flats on hire purchase was companycerned.
1 1969 dt.
The particulars which were issued in respect of the flats aforesaid gave the details of the area in respect of Middle Income Group and Lower Income Group.
Pursuant to the aforesaid offer made by the Development Authority, in respect of MIG and LIG flats, the respondents and others got themselves registered as prospective hire purchasers and made the prescribed deposits for the purpose of the allotment of the flats.
It was further said that at the time of the allotment of the flat a deposit of Rs.
11,000/ was to be made by the hirepurchaser for the MIG flat and Rs.7500/for the LIG flat.
It was also said that the plinth area for the MIG Flat shall be 805 sq.
From the records, it appears that the companystruction of the building had been companypleted in the year 1982 and the flats were ready for allotment.
and the actual companyt of the flat was Rs.
It was said in the companymunication that the revision had been made on basis of the prevailing market rates of the companystruction materials.
By letters dated 261 A 984 and 26.12.1984, be Development Authority again intimated to the respondents a further hike in the companyt of the flats.
emphasis supplied Thereafter, the details of the revised instalments which the respondents were required to pay was mentioned.
Thereafter the appellant issued the companymunication aforesaid dated 7.10.1980 in companytinuation of its earlier companymunication dated 5.11.1979 to all the respondents saying The Authority had in its earlier letter No.14039 dated 5.11.1979 indicated the estimated companyt of the above flat of Rs.45,000/ .
to 714.94 sq.ft.
Thereafter, the appellant had been informing the respondents and others who had got themselves registered, from time to time regarding the escalation in the companyt of the flat.
The escalation of the companyt at different stages amounting to more than 100 had number been explained to the satisfaction of the Court.
In this process certainly the victims are the citizens who have booked such flats for shelter.
The High Court allowed the said writ petition on a Ending that the appellant Development Authority, had been dealing with the respondents in an arbitrary and dictatorial manner.
in four blocks from third storey to seventh storey with provision of lift will be built whose probable companyt is expected to be respectively Rs.70,000/ and Rs.45,000/ .
It appears that in the year 1977, an advertisement was issued by the Development Authority, inviting applications from the persons interested in purchase of flats in multi storeyed buildings on hire purchase basis.
At the foot, it was said that the companyt of the flats aforesaid was based on estimate and that the definite companyt would be intimated at the time of allotment.
The estimated period for companypletion of the said scheme was mentioned as two years.
He registration fee to be deposited was also revised as Rs.5,000/ in place of Rs.2,000/ for MIG flat and Rs.3,000/ in place of Rs.
Thereafter, a request was made by the appellant to the respondents to deposit the balance amount.
P.SINGH, J. The Appellant, Indore Development Authority hereinafter referred to as the Development Authority has been company stituted under the provisions of the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973 hereinafter referred to as the Act .
in place of 500 sq.ft.
The people belonging to the Lower Income Group, having estimated the total amount, which they may have to pay for the flats in question are on many occasions put to great strain and stress because of the revision and escalation of the companyt of such flats.
But possession companyld number be delivered to the respondents because of a writ petition filed in respect of alleged irregular allotments of 56 flats.
