Re-mumbai

Mira Road Flat Resale Dispute: Consumer Commission Orders Developers To Pay Rs 85 Lakh Or Provide Alternative Home

The Maharashtra State Consumer Disputes Redressal Commission has held Rockline Construction Company and RNA Corporation responsible for allegedly reselling a flat booked by a Mira Road homebuyer and subsequently demanding a significantly higher price. The commission found deficiencies in service and unfair trade practices after the developers failed to contest the consumer’s allegations.

Bhupendra D. Trivedi booked a 763-sq-ft apartment, Unit-3L/14, in their residential project in 2009 at Rs 3,100 per sq ft, paying Rs 5 lakh upfront. He said a registered sale agreement was necessary to secure a bank loan for the outstanding amount, and claimed to have submitted proof of eligibility for a Rs 24 lakh loan from Greater Bombay Co-operative Bank.

Despite repeated requests, the agreement was allegedly not registered. The developers reportedly wrote to him in October 2010 promising to begin the registration process while warning of a 24% annual penalty for delayed payments.

When Trivedi approached them in March 2014, prepared to clear the balance, they allegedly demanded Rs 7,000 per sq ft instead of honouring the original price. He later discovered that the building had been completed and the flat had been sold and handed over to another buyer.

The commission noted that the developers neither submitted written replies nor attended the final hearing on May 6, 2026, despite directions. Their absence left the complainant’s claims “completely unchallenged and uncontroverted”.

The commission has directed the companies to provide an alternative 763-sq-ft flat in the same project or nearby at the original rate, subject to payment of the balance, and register the agreement within 60 days of the order. If they cannot do so, they must jointly and severally refund Rs 85 lakh with 10% annual interest from the respective payment dates until repayment.

Additionally, the developers must pay Rs 25 lakh for property-price escalation, Rs 1 lakh for mental agony and harassment, and Rs 50,000 towards legal expenses.

The commission observed that Section 4 of the Maharashtra Ownership Flats Act, 1963, requires developers to execute and register a sale agreement before accepting more than 20% of the purchase price as an advance.

Source: The Free Press Jounal

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