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SC/ST corporation told to pay compensation

Apex Consumer Court has issued the directive

New Delhi: The Apex Consumer Court has asked the Karnataka SC/ST Development Corporation to release property documents and pay Rs. 30,000 as compensation, including margin money, to a person who was denied delivery of a passenger vehicle despite his loan being sanctioned.

Expressing displeasure over the issue, a National Consumer Disputes Redressal Commission Bench presided by Justice M.B. Shah and member Rajya Lakshmi Rao asked the corporation to recover the compensation amount from its Managing Director.

The verdict came on a petition filed by the corporation against an order of the Karnataka State Consumer Commission which, upholding the Chitradurga district forum ruling had asked the corporation to release the mortgage deed of Chanabasappa.

`Irregular' payment

The State commission had also held the corporation guilty of making an "irregular payment" of Rs. 1.9 lakh to a dealer who did not deliver the vehicle.

Dismissing the petition, the apex commission said: "This shows that the corporation is there not for uplift of Scheduled Castes and Tribes but for the uplift of cheats and rich people and these facts clearly show that there was deficiency of service."

Vehicle loan

The complainant was sanctioned a loan for purchasing a passenger vehicle in 1998. The corporation asked the complainant to mortgage his house as debt security. Moreover, it also received Rs. 9,000 as margin money. But to the utter shock of the complainant, neither the vehicle nor the deposited money and papers were returned, forcing him to approach a consumer court. — PTI

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