Mumbai News: Buyer Gets ₹ 2.75 Crore Refund For Not Getting Booked Flat

The National Consumer Disputes Redressal Commission has directed a Mumbai-based developer to refund a homebuyer Rs 2.75 crore with 9% interest and Rs 2 lakh as compensation for not providing a booked flat. The complainant had sought 24% interest as agreed in the agreement if the flat is not provided on time. However, the commission gave 9% interest citing the principle of the Contract Act and a Supreme Court judgement which held that, in case of refund, it is restitutory and compensatory both. The commission said that if the refund with interest is not given in two months, it will carry 12% interest.

Buyer to get refund with 24% interest per annum

The order, dated June 12, was passed on a complaint of Santacruz resident Sunita Patel against M/s Sun Vision Emerald and another and Jitendra Jain. Sun Vision had taken up redevelopment of a plot in Andheri when it came to them. Jain had become the owner of Sun Vision on reconstitution in the firm. Patel booked a flat in the project advertised by Sun Vision believing in the amenities promised. As per the plan sanctioned by the BMC, stilt plus 12 floors were to come up. Patel was allotted a flat on the fifth floor measuring 1,085 sqft of the ‘Emerald’ building in Azad Nagar Co-operative Housing Society. She paid Rs 2.75 crore over a period of time by March 2015. The total consideration was Rs 2.95 crore.

As per the agreement, Patel was to get possession by March 2017 with a reasonable extension. The agreement further stated that if the developer failed to deliver possession then Patel would be entitled to claim a refund with 24% interest per annum. When Patel enquired about the update on the construction, she did not get any response and then filed a complaint in July 2017.

The commission stated that Sun Vision did not file its reply and as per arguments and registered agreement payment of Rs2.75 crore was acknowledged besides the handover promised by March 2017. It added that the developers failed to deliver “possession within the promised date or even till today”. It then directed the parties to refund the money with compensation.