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A consumer commission in Mumbai has directed a developer to repurchase a flat sold over two decades ago, citing the absence of a mandatory completion certificate. The buyer, who had purchased the property in the early 2000s, raised the issue after the building failed to obtain the necessary approval. The commission ruled that the developer must compensate the buyer by repurchasing the flat at its current market value, alongside interest and additional costs for the prolonged inconvenience caused.
In a notable decision issued earlier this week, the Maharashtra State Consumer Disputes Redressal Commission in Mumbai instructed a developer to repurchase a residential flat that had been sold more than 20 years ago. The directive was issued after it was found that the building never received the required completion certificate from the relevant municipal authorities. Advertisement
The complaint was filed by a homebuyer who had acquired the flat in the early 2000s. According to case records, the buyer had been living in the property for years without realising that the legal completion certification was missing. This absence not only raised concerns over the building's compliance with municipal regulations but also limited the buyer's ability to sell or mortgage the property in the open market.
The commission observed that the developer had failed in their duty to secure the completion certificate, which is a mandatory requirement under local building laws. It noted that such negligence had placed the homeowner in a disadvantaged position for over two decades.
As part of its order, the commission directed the developer to repurchase the flat at its prevailing market rate. It further instructed payment of applicable interest on the amount as well as coverage of legal expenses incurred by the buyer. The panel emphasised that homebuyers are entitled to receive properties with all statutory approvals in place, and developers cannot indefinitely delay compliance with legal obligations.
By ordering the developer to repurchase the property at its current value and compensate for the inconvenience, the decision sends a strong message to the real estate sector regarding accountability and adherence to statutory requirements. It also highlights that lapses in regulatory compliance, even decades old, can have lasting repercussions for developers.
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