The District Consumer Disputes Redressal Commission, Central Mumbai, has directed a Chembur-based real estate developer to refund Rs 10.45 lakh, along with 8% annual interest, to a 72-year-old retired teacher after the developer failed to hand over possession of a flat booked in 2009.
In addition to the refund, the Commission awarded Rs 50,000 as compensation for mental harassment and deficiency in service, along with Rs 10,000 towards litigation expenses.
In its order, the Commission held that the developer was responsible for deficiency in service and unfair trade practice. “Failure of the developer to refund the money amounts to clear deficiency in service. Furthermore, the developer’s conduct in retaining the money despite failing to fulfil its obligations is an unfair trade practice. The complainant had to make several communications, which resulted in mental agony. Thus, the complainant is entitled to get compensation for mental and physical agony,” the order stated.
According to the Commission, complainant Shobhnath Ramkumar Yadav had booked a 791 sq ft flat in a residential project at Tilak Nagar, Chembur, developed by Srusti Raj Enterprises (India) Ltd. The apartment was priced at Rs 34.80 lakh, and the builder had assured possession within three years of booking.
Between September 2009 and March 2010, Yadav paid Rs 10.45 lakh, amounting to nearly 30% of the total sale consideration. However, despite receiving the payment, the developer neither executed a registered agreement for sale nor completed the project or handed over possession of the flat.
The Commission further observed that the builder unilaterally cancelled the booking on December 8, 2016, but failed to refund the amount paid by the homebuyer.
Even after the complainant served a legal notice in September 2024 seeking a refund with interest, the developer did not respond. As a result, Yadav approached the Consumer Commission for relief.
Since the developer remained absent during the proceedings, the Commission decided the matter ex parte and directed the builder to refund the amount along with the applicable interest and compensation.
Source: The Free Press Journal
