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A Vadodara-based developer was ordered by the State Consumer Disputes Redressal Commission earlier this week to refund INR 28.42 lakh along with 12 percent interest for failing to deliver a flat booked in 2012 with possession promised by 2016. The buyers had paid INR?6?lakh via cheque and INR 22.42 lakh through a bank loan that was prematurely disbursed. Their 2019 complaint cited deficiency of service and unfair trade practices. The commission also awarded INR 50,000 for mental anguish and their advocate confirmed that an execution application has been filed since the builder hasn't complied.
A Vadodara couple who booked a flat more than a decade ago but never received possession will now get their money back, as ordered by the Gujarat State Consumer Disputes Redressal Commission. Dr Nilam and Dr Rasesh Desai had booked the flat in 2012, paying INR 6 lakh by cheque and another INR 22.42 lakh through a home loan from a private bank. The builder had promised to hand over the property by April 2016, but despite receiving the entire payment, no possession was given and the project remained incomplete. Advertisement
After waiting several years with no progress, the couple filed a formal complaint in 2019. They accused the builder of not fulfilling his promise and engaging in unfair practices. When the matter came before the commission, the builder didn't even appear to present a defence.
The commission took serious note of this and passed an ex-parte order. It directed the builder to refund the full INR 28.42 lakh, along with 12% interest calculated from the time of payment. In addition, the couple was awarded INR 50,000 for the mental distress and trouble they faced all these years.
Their lawyer, Advocate Abhijeet Sharma, confirmed that an execution application has now been filed to enforce the refund, since the builder still hasn't complied with the commission's order.
This isn't the only such case in Vadodara. In another matter, Gujarat RERA had earlier ordered a different developer to return INR 22.94 lakh with 18% interest after failing to deliver a flat for over 10 years and ignoring repeated notices. These rulings show that authorities are becoming stricter with developers who don't stick to delivery timelines.
There's also important legal clarity from the Supreme Court on such issues. The court recently ruled that while developers must refund the principal with agreed interest if they fail to deliver homes, they aren't automatically responsible for interest charged on home loans unless it's clearly mentioned in the agreement or there are exceptional reasons. However, compensation for mental agony and inconvenience can still be granted, depending on the case.
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