Mumbai: Developer asked to refund ₹26 lakh to flat buyer

The National Commission in an order directed Andheri based D. K. Realty (India) Private Limited to refund Rs 25.95 lakh amount for Kurla project in which the complainant did not get flat.

The order dated May 4 was passed by Justice Ram Surat Ram Maurya, presiding member and Inderjit Singh, member, National Consumer Disputes Redressal Commission (NCDRC). It was passed on a complaint by Amresh Pednekar against Andheri based D. K. Realty (India) Private Limited.

D K Realty, engaged in business of development and construction of group housing projects launched a project "Livsmart" near Kohinoor Health Club, Kurla in 2015 and made wide publicity of its amenities and facilities. Believing in the representation, Pednekar booked a flat measuring 536.69 sq ft. whose total price was for Rs 1.13 crores in April 2016. Pednekar paid Rs 6.46 lakhs towards booking amount by April 2016 and D K executed an agreement in May 2016.

As per agreement, the payment plan was to be a "construction link payment plan". A clause stated that the plan will be completed by December 2018 with a grace period up to December 2019.

Buyer keeps paying but doesn't get his flat

Pednekar took a loan from Dewan Housing Finance Corporation Limited for paying instalments. As per demands, he further paid around Rs 20 lakhs by June 2016. When the construction did not start and complete on time, Pednekar sought cancellation of his allotment and return of his money. When no reply came, he filed a complaint.

At the national commission, D K did not contest the complaint and the allegations went unchallenged. During the hearing, the Commission stated that Clause-10 of the agreement provides a lock-in period of two years from January 2016 during which the agreement could not be cancelled. But the complainant sought cancellation and return of his money in January 2019. It stated that D K also did not seek money post 2016 towards construction and that it was unreasonably delayed so the complainant was entitled to cancel agreement and seek refund. It directed the developer to refund the amount within two months of the order.