In Brief
Visakhapatnam Metropolitan Region Development Authority (VMRDA) allotted a flat to Chavva Sheela Reddy at Rs 30,40,000 but later demanded escalated cost of Rs 38,30,050. The Supreme Court held that the allotment letter, with its provisional pricing language and clause permitting future conditions, did not constitute a fixed-price contract. Therefore, VMRDA was entitled to revise the price upon project completion. The Court also noted that VMRDA acted fairly by granting interest to all allottees despite contractual terms against it. The appeal was allowed and the National Consumer Disputes Redressal Commission's judgment was set aside.
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