Mumbai Consumer Commission Orders Thane Developer to Refund ₹7.92 Lakh for Unreasonable Delay

The Additional District Consumer Disputes Redressal Commission (DCDRC), Mumbai Suburban, has ordered Thane-based Wings Lifespaces Marketing Services Private Limited, a real estate firm, to refund a substantial deposit amount for causing an unreasonable delay in registering the agreement for sale. The Commission has directed the developer to return Rs 7,92,300, which the complainants, Aninda and Purnima Bhattacharya, had paid towards booking a plot in 2017, along with interest at the rate of nine per cent per annum. Additionally, the developer must pay Rs 50,000 as compensation for mental agony and Rs 10,000 towards litigation costs.

According to court documents, Aninda and Purnima Bhattacharya, residents of Ghatkopar, had booked a 1,790 sq. ft. plot in Village Khandeghar, Taluka Vikramgad, through Wings Lifespaces Marketing Services Pvt. Ltd., Acropolis Infrastructure Development, and Wings Realty Ventures LLP. The total consideration for the plot was Rs 8,25,500, of which the couple paid Rs 7,92,300 in instalments by June 2017.

Despite the substantial payment, the developers repeatedly failed to execute and register the agreement for sale. The complainants faced years of unfulfilled assurances and various excuses from the builders, including delays in transferring land abstracts. Frustrated by the lack of progress, the couple sought a full refund in June 2019. When the firms failed to process the refund, the Bhattacharyas approached the Consumer Commission in 2021.

The bench, comprising Pradeep G. Kadu and Gauri M. Kapse, found the developers guilty of unfair trade practices. The Commission observed that the builders had failed to register the agreement within a reasonable period and were unable to provide any valid justification for withholding the refund. Advocate Anil Dsouza, representing the complainants, successfully argued the case, leading to the Commission's favorable decision.

This ruling is a significant win for consumers facing similar issues with developers. It highlights the importance of timely and transparent dealings in the real estate sector and serves as a warning to developers who engage in unfair practices. The Commission's decision reinforces the rights of consumers and the need for developers to adhere to legal and ethical standards.