Mumbai: Consumer Commission Orders Developer To Refund Booking Amounts With Interest To 17 Families After Decade-Long Wait For Flat Possession

Mumbai: In a major relief to 17 families who have been waiting over a decade for possession of their flats, the Mumbai Suburban Additional District Consumer Dispute Redressal Commission has ordered a developer to return the booking amounts along with 12% interest, as well as Rs 80,000 to each complainant for mental distress and litigation costs.

The buyers, who each booked a flat in 2009 for a quoted price of Rs. 7 lakhs, were initially informed that the project would be a ten-story building, with seven floors completed by that year. They paid 50% of the amount upon registration, with the remaining 50% due upon possession. However, over the years, they noticed the construction progress was unusually slow. The developer repeatedly assured them that possession would be handed over “at the earliest.”

In 2012, when some buyers visited the site, they were shocked to learn from a security guard that work had stopped entirely that year. The developer reassured them that possession would be available by 2013, but that promise went unfulfilled. By 2018, frustrated and realizing they had been deceived, the families demanded refunds from the developer, who failed to respond.

The commission issued a notice to the developer, but he failed to appear for the hearings. After reviewing the case details, the commission found that the developer not only provided deficiency in service but also failed to mention key terms in the allotment letters, leaving buyers without clear possession timelines or financial recourse.

The commission ruled in favor of the buyers, finding the developer liable for “deficiency in service” by failing to deliver the flats or refund the amounts. In addition to the refund, the developer is directed to pay 12% annual interest on the booking amounts, and Rs. 80,000 to each complainant for mental anguish and legal expenses.