Builder Told to Repay ₹3 Lakh with 9% Interest After Project Delay Forces Couple to Cancel Flat Booking in Nagpur
Builder Told to Repay ₹3 Lakh with 9% Interest After Project Delay Forces Couple to Cancel Flat Booking in Nagpur
Nagpur consumer court rules in favour of homebuyers, calling the builder’s retention of money “unjust enrichment”.
A Nagpur consumer court has ordered a real estate developer to refund ₹3 lakh to a couple along with 9% annual interest from October 27, 2017, after a delayed housing project forced them to cancel their flat booking. The Additional District Consumer Disputes Redressal Commission has also directed the firm to pay ₹30,000 as compensation for mental harassment and ₹10,000 towards legal expenses.
The couple, both medical practitioners, had booked a flat worth ₹79.27 lakh in 2015 in a project located on Besa–Pipla Road. They paid ₹1 lakh at the time of booking on October 27, 2015, followed by ₹2 lakh on February 29, 2016. As construction continued to lag, they cancelled the booking on July 7, 2017, citing unavoidable circumstances. The builder reportedly assured them a refund within three months from July 27, 2017, but no repayment was made. Left with no option, they approached the consumer forum in 2019.
In its defence, the developer argued that the cancellation was voluntary and not due to any deficiency in service. It claimed the flat was nearly 85–90% complete and ready for possession, and that the complainants failed to execute the sale agreement or make further payments. The firm also stated that the complaint was time-barred and amounted only to monetary recovery.
Commission president Satish Sapre and member Milind Kedar dismissed these arguments. They observed that the builder failed to produce any evidence showing actual financial loss or any clause permitting forfeiture of the booking amount. The commission noted that keeping the entire payment without contractual permission amounted to “unjust enrichment”.
The court further held that the couple’s complaint was within the prescribed two-year limitation period. Non-refund of the booking amount even after cancellation was deemed a clear deficiency in service.
The ruling strengthens the legal position of homebuyers, underscoring that developers cannot withhold consumer money without a written agreement or proven loss. The company has been directed to refund the amount with interest and pay all compensations within 45 days.
