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Supreme Court of India 2019-11-14 allowed

THE MANAGER THE MAHARASHTRA STATE COOP. BANK LTD vs FARMER BANK EMPLOYEES COOPERATIVE HOUSING SOCIETY LTD

Bench: 2 — Uday Umesh Lalit, Indu Malhotra

In Brief

A cooperative housing society representing bank employees sued the bank (the appeal's parties) for consumer protection violations, claiming the bank wrongfully retained title to 28 constructed tenements and refused timely transfer of land. The Bank had built the tenements for its employees using no-profit financing. The lower commissions ruled in the society's favour. On appeal, the Supreme Court found no deficiency in service, but held that since employees' loan payments indirectly covered costs allocated across 28 tenements rather than 14 original plots, each holder was marginally overcharged. The Court allowed the appeal, directing either Rs. 10,000 compensation per tenement holder or full transfer of the 28 tenements and proportionate land (excluding two vacant plots) within specified timeframes.

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Consumer Protection Banking Regulation Housing and Real Estate Cooperative Societies Stamp Duty and Registration Restitution

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