The petitioner was aggrieved by the recovery proceedings initiated by the 4th respondent for amounts due in a housing loan. Admittedly the loan was availed from Kollam Development Authority, which, later, was dissolved and was taken over by the Local Self Government Institution, being the Kollam Corporation. On default, proceedings were taken against the petitioner, upon which the petitioner was before this Court. 2. At the time of admission, there was an interim order passed on 02.09.2005, wherein the petitioner was directed to remit Rs.30,000/- (Rupees thirty thousand only) within one month from that date. It is not clear as to whether such remittance has been made. Anyhow, on 27.06.2008 this Court directed the Government Pleader to get a report from the Government about the propriety of a statutory body charging high rate of interest on housing loans.
3. A report has been placed on record, wherein it is stated that the housing loan was in fact granted under a scheme of WP(C).No.26120 of 2005 - 2 -
Kollam Development Authority, financed by HUDCO on the strength of Government guarantee. The amounts advanced by the HUDCO was repayable to HUDCO with interest at 16.5% per annum by the Development Authority. Hence, effectively the Development Authority gets only 0.5% interest on the loan account. In such circumstance, it cannot be said that the Development Authority has been charging higher rate of interest in providing housing loans. Evidently the Development Authority has been dissolved and the said Authority was taken over by the Kollam Corporation. The loan has been settled by the Kollam Corporation; by paying principal and interest to the HUDCO. What is now sought for is, recovery of the amounts so repaid to the HUDCO by the Corporation; including the principal, interest and penal interest. There can be no interdiction of recovery made on that count.
In the above circumstance, the writ petition is devoid of merit and the same is dismissed, without costs.
vku/-
( true copy ) Sd/- K.Vinod Chandran Judge.