Maharashtra Consumer Commission Orders Developer to Refund Homebuyers in Wadala Project
The Maharashtra State Consumer Disputes Redressal Commission (SCDRC) has ordered a real estate developer to refund over Rs 45 lakh to a couple whose flat allotment was cancelled in a Wadala housing project. The commission also directed the developer to pay Rs 15 lakh in interest.
Real EstateConsumer ComplaintRefundWadalaMaharashtraReal Estate MumbaiOct 02, 2025
The complainants, Sharmistha Ray and Manabendra Nath Ray, had booked a flat in the ‘Gaurav Sarjan' project, proposed to be constructed in Antop Hill, Wadala (East). The total cost of the flat was Rs 71 lakh, and the Rays had paid a substantial amount of Rs 45 lakh to the developer, Vijaykamal Properties Private Limited, between the date of booking in 2014 and the cancellation in 2018.
The Rays, represented by advocate Mahesh Menon along with advocates Aakansha Anand and Pranav Chavan, submitted that they failed to receive possession of the flat. After sending a legal notice to the developer in March 2018, the developer, through a letter dated August 1, 2018, informed the complainants that the allotment was cancelled due to 'several litigation and technical difficulties.' The developer's subsequent failure to return the advance amount with interest led the Rays to file a consumer complaint in 2019.
In their complaint, the Rays sought a refund of the amount paid along with 18% interest, Rs 8 lakh towards mental agony, and Rs 6 lakh as compensation. However, they agreed to 9% interest before the commission, the rate initially offered by the developer.
The commission, in its ruling, held the developer Vijaykamal Properties Private Limited and its two directors, Jayesh Shah and Ketan Shah, guilty of deficiency in service. The commission stated, 'Opposite Parties (company and directors) admitted they received the part consideration amount from Complainants towards Flat. Due to several litigation and technical difficulties, the project was not completed and cancelled allotment of the subject flat allotted to the complainant. Therefore, the opposite party committed deficiency in service and unfair trade practices.'
During the proceedings, the developer and directors did not dispute receiving the part payment but argued that they were ready and willing to compensate the complainants by refunding the amount along with nine percent per annum interest, as they claimed was agreed upon at the time of booking. The developer's written statement accused the complainants of having a 'greedy attitude,' claiming that the Rays were not ready to accept the offer and were instead trying to 'extract more monies' by settling on their own terms. The developer insisted they were still prepared to refund the money with nine percent interest.
The commission's decision is a significant victory for homebuyers and highlights the importance of stringent regulations and accountability in the real estate sector. It serves as a warning to developers to adhere to their commitments and avoid unilateral actions that can cause financial and emotional distress to homebuyers.
Frequently Asked Questions
What was the total cost of the flat in the 'Gaurav Sarjan' project?
The total cost of the flat was Rs 71 lakh.
How much did the Rays pay to the developer before the cancellation?
The Rays paid a substantial amount of Rs 45 lakh to the developer between the date of booking in 2014 and the cancellation in 2018.
Why was the flat allotment cancelled?
The flat allotment was cancelled due to 'several litigation and technical difficulties' as stated by the developer.
What did the Rays seek in their consumer complaint?
The Rays sought a refund of the amount paid along with 18% interest, Rs 8 lakh towards mental agony, and Rs 6 lakh as compensation.
What was the final decision of the Maharashtra State Consumer Disputes Redressal Commission?
The commission ordered the developer and its directors to refund over Rs 45 lakh along with Rs 15 lakh in interest to the Rays.
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