[Resolved]  Sainik Welfare Organisation-India (Swo-India) — IMPROPER REFUND POLICY

Address:

Delhi

Hi, I planned to own a residential plot from my hard earned savings during the last two years of service was left in the Army, so that after retirement, I can construct a own house from the final settlement amount and can settle in the life to some level. Meanwhile, I came to know about Sainik Welfare Organisation-India (SWO-India) housing scheme, a Delhi based organisation which provides residential plots to Defense personals. Accordingly, I choose to buy a plot from SWO-India since, the organisation's background is from ex-defense personnel and the chairman being a Kargil award winner. My booking amount and installment advance payments for Bangalore project P-30 are as under :-

Location Demand Survey fee Rs 7,000/- dt 20 Jun 2009
Ist Installment Amt Rs 1,66,500/- dt 06 Feb 2010
IInd Installment Amt Rs 1,69,500/- dt 11 May 2010
IIIrd Installment Amt Rs 1,69,500/- dt 10 Aug 2010

The total amount paid to SWO-India as on 10 Aug 2010 was Rs 5,12,500/-. After this, I had personally visited Delhi office 4-5 times, called telephonically a No of times and lots of e-mails to enquire about the status of the project from time to time and I was told every time the same answer that "the actions are in-hand, kindly bear with us". After these unsatisfied replies, I reached Chairman, SWO-India vide my mail dated 15 Nov 2011 asking for exact status of the Bangalore project and it was his commitment that the plots will be handed over by Mar/Apr 2012 hence, I waited still further for positive responses but till 10 Dec 2012 (approximately one year), there was no updates received from SWO- India regarding the status of the project. On 18 Dec 2012, I received a letter stating that the Bangalore project P-30 has been dropped due to delay in issue of layout plans and other approvals from development authorities and the investors can either opt for new project or refund. I opted for refund, which I never expected at the time of booking and the terms for refund are 5% PA for the period from 01 Sep 2011 to 31 Dec 2012.

My Queries
(a) With reference to SWO's rule book rule No 15.2.1 & 15.2.2, my hard earned saving amount of Rs 5,12,500/- was held with SWO-India from 10 Aug 2010 to 14 Feb 2013. Hence, as per SWO-India rule book, I should be paid interest rate for the total period for which amount was held with the organisation. whereas, I am getting the interest rate only for the period from 01 Sep 2011 to 31 Dec 2012.

(b) As per SWO-India LDS letter dt 30 Dec 2009, proposed period of completion of Bangalore project was 14-18 months which falls in Jun 2011, the same was delayed due to various reasons and also it was committed by Chairman, SWO-India himself vide his mail dated 16 Nov 2011, that the plots will be handed over by Mar/Apr 2012, then why the interest period fixed from 01 Sep 2011.

(c) My refund application was signed by me on 31 Dec 2012 and the same was reached SWO-India office on 04 Jan 2013, I received my refund on 14 Feb 2013. Due to SWO's staff delay in processing the document/shortage of fund, my interest rate was not paid from 04 Jan 13 to 14 Feb 13.

(d) As per SWO-India general terms & conditions, in-case, for any reason if, SWO-India is unable to deliver the possession of plots in stipulated period of 3 years, SWO-India will refund the entire amount deposited by the applicant alongwith 9% of interest rate. My date of Ist booking amount was made on 06 Feb 2010 and my refund was made on 14 Feb 2013. In my case, the interest rate was calculated as 5% only and that too not for the complete period for which the amount was held by SWO-India.

(e) SWO-India is imposing the interest rate of 9% for delayed installment payments from its investors & 10% interest rate for cancellation of the project by the investor, then how come the interest rate comes down to 5% for refund, if the project is dropped by SWO-India itself.

(f) The processing fee of Rs 4,000/- was collected at the time of booking which is not refundable, but in this case, the project was never stepped into its initial stages i.e, neither layout plan was received nor acquisition was done and moreover, it was dropped by SWO-India itself before stepping in. Then why the processing fee was not refunded alongwith interest.

Finally, neither I owned a land nor I constructed the house. Hence, if any of the above query is addressed/reconsidered, it would be greatly appreciated. Hope will receive a favorable response from your side very soon.