Ghaziabad Consumer Commission Orders Real Estate Developers to Refund Rs 7 Lakh with Interest
The District Consumer Disputes Redressal Commission in Ghaziabad has issued a landmark order, directing two real estate developers to refund a total of Rs 7 lakh along with interest to a homebuyer. This decision comes after the buyer faced significant delays and failed to receive possession of a flat booked back in 2008.
Details of the Case and Penalties Imposed
In a ruling dated April 17, the commission, presided over by President Anil Kumar Pundir with members Shailja Sachan and RP Singh, has mandated that Ghaziabad-based M/s Shreya Developwell Private Limited and Delhi-based M/s Sangwan Heights Private Limited comply with the refund order within 30 days. Additionally, each developer has been slapped with a penalty of Rs 10,000 for their failure to deliver on promises.
Chronology of Events Leading to the Complaint
The complaint was filed by Siksha Bharadwaj and her son Prashu Bharadwaj on May 8, 2023. They had initially invested Rs 6 lakh in a residential project with Shreya Developwell between 2006 and 2008. When the project stalled, the developer issued cheques for a refund in October 2008, but these were later withdrawn. New cheques were issued in January 2009, yet payment delays persisted.
Subsequently, the complainants were persuaded to shift their investment to another project, Sangwan Heights in Rajnagar Extension, which was being developed in collaboration with the Delhi-based firm. In 2014, they paid an additional Rs 1 lakh as a booking amount for this new venture. Both developers provided an undertaking that the earlier amount paid to Shreya Developwell would be adjusted into the Sangwan Heights project.
The project was slated for completion by 2018, but the Bharadwajs neither received an allotment letter nor possession of the flat. When they sought a refund between 2020 and 2021, the developers cited delays due to the COVID-19 pandemic and continued to defer repayment.
Commission's Findings and Ruling
After issuing notices to both developers and hearing the matter ex parte due to their lack of response, the commission examined affidavits and documents. It determined that Rs 3 lakh remained with Shreya Developwell, while Rs 4 lakh, including the adjusted amount and the additional booking fee, was held by Sangwan Heights.
The commission ruled that both developers are liable to refund these amounts with interest. Specifically, Shreya Developwell must pay Rs 3 lakh with 6% annual simple interest from May 8, 2023, until final payment, plus interest on the transferred amount from January 17, 2008, to June 17, 2016. Sangwan Heights is directed to refund Rs 1 lakh with interest from the complaint filing date, along with Rs 3 lakh and interest from June 17, 2016.
Conclusion and Implications
The commission noted that despite repeated assurances, the developers failed to deliver the flat or return the money, thereby violating consumer rights. This ruling underscores the importance of accountability in the real estate sector and serves as a reminder to homebuyers to seek legal recourse in cases of prolonged delays and unfulfilled promises.
