The court found the demand for 14% interest arbitrary and ruled for a reduced rate of 6% during the ongoing litigation.

THE HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY WRIT PETITION No.11656 OF 2025 ORDER : (ORAL)

This writ petition is filed by the petitioner seeking to declare the action of respondent No.3 - the Executive Engineer (Housing), the Telangana Housing Board, in issuing the proceedings vide Lr.No.167/MIG-II/GDL/SFS/E2/EE(Hg)/MBNR/2015/232 dated 25.08.2023, Lr.No.167/MIG-II/MIG-I/LIG/EE(Hg)/THB/ MBNR Divn/2024 dated 20.02.2024, and Lr.No.167/MIG- II/GDL/SFS/E2/EE(Hg)/MBNR/2015 dated 14.08.2024 directing the petitioner to pay an amount of Rs.11,99,678/- (Rupees eleven lakhs ninety nine thousand six hundred and seventy eight only) which includes 14% interest of Rs.6,06,299/- as being illegal, arbitrary and contrary to the order passed by this Court in W.P. No.3841 of 2015 and batch dated 04.07.2023, and for a consequential direction to respondent authorities to execute sale deed in favour the petitioner without insisting the payment of interest @ 14% from 2014-2023 on the revised tentative cost.

2. Heard Mr. Gudi Madhusudhan Reddy, learned counsel for the petitioner, and Mr. C. Buchi Reddy, learned standing counsel for the Telangana State Housing Board, appearing for respondents, and perused the material on record.

3. The case of the petitioner is that respondent No.2 - the Telangana Housing Board has issued notification in leading newspapers inviting applications for allotment of houses under various categories in the year 2009. In response thereto, the petitioner submitted application for allotment of house under MIG-II category constructed by the Housing Board, opposite to railway station, Gadwal, Mahabubnagar District, under self-financing scheme. Respondent No.3 issued allotment letter vide No.167/MIG-II/Gadwal V-II,Ph-II/E2/2011 dated 08.02.2011 to the petitioner allotting house No.167 under MIG-II category subject to the payment of Rs.10,00,000/- (Rupees ten lakhs only) towards tentative costs. It is stated that allotment was made subject to enhancement of cost of 10% over and above the tentative costs.

4. It is submitted that maximum enhancement costs that could be enhanced by respondents was Rs.1,00,000/- i.e., 10% of the tentative cost of Rs.10,00,000/- under the MIG-II category. However, respondent No.2 enhanced the cost to Rs.3,56,000/- for the house under MIG-I category, Rs.4,94,894/- under MIG-II category and Rs.5,58,194/- under HIG category. Aggrieved by the enhancement, the petitioner and others filed W.P. No.20875 of 2015, wherein interim order dated 08.07.2015 was passed, and the writ petition was finally heard and disposed by the common order dated 04.07.2023; the learned Judge has not reduced the cost by noting that increase in the tentative cost appears to be reasonable.

5. Learned counsel for the petitioner submitted that order dated 04.07.2023 was passed on the consent of the learned counsel for the petitioners therein who agreed for paying escalated costs due to efflux of time and the same was recorded by the learned Judge at paragraph No.10 of the common order dated 04.07.2023. In the said order, direction was given to the petitioner and others to pay differential amount and upon such payment, respondents therein were directed to immediately register the sale deed in their favour.

6. It is submitted that subsequent to the common order in W.P. No.20875 of 2015 and batch dated 04.07.2023, the petitioner submitted representation to respondent No.3 for furnishing details of payment to be paid by the petitioners. In response, respondent No.3 has furnished statement (under Ex.P4) showing the following details: Final cost - Rs.14,94,840/-, Notified cost - Rs.10,00,000/- and differential cost - Rs.4,94,840/-. (As per the VC and orders of t