NCDRC Upholds Builder’s Flat Cancellation, Allows 10 Per Cent Forfeiture Over Buyer’s Payment Default
The NCDRC upheld Jawala Real Estate’s cancellation of a Nagpur buyer’s flat allotment at its Lower Parel project and forfeiture of 10% of the basic sale price. It found that construction records supported the payment demand and that the buyer had defaulted on timely payments.
The consumer commission found that construction records supported the developer’s payment demand and that the buyer had failed to meet his payment obligations | Representational Image
Mumbai, November 3, 2026: The National Consumer Disputes Redressal Commission (NCDRC) has upheld Jawala Real Estate’s cancellation of a Nagpur homebuyer’s flat allotment at its Marquise high-rise in Lower Parel and forfeiture of 10% of the basic sale price.
Pratap Premchand Agarwal, who filed his complaint in 2018, had booked a flat in Wing 3. He challenged the developer’s June 19, 2015, demand for Rs 41.62 lakh, alleging that the corresponding construction had not been completed. He sought a refund of the forfeited amount and statutory dues, and questioned the sale consideration and possession timeline.
Builder Submits Construction Records
The developer denied deficiency in service or unfair trade practice, submitting that its demand was supported by an architect’s certificate, photographs and an acknowledgement from BMC Building Supervisor Lalit Mishra, which Agarwal had allegedly withheld. It also produced construction records, including Mishra’s June 18, 2015, certificate confirming commencement of reinforced cement concrete (RCC) work at Level 9 of Wing 3.
The commission said the BMC certificate and records showed construction had progressed as planned and the demand complied with the agreement. “It was the Complainant who defaulted in timely making the payments,” it observed, holding that the cancellation and 10% forfeiture were within the agreement’s terms.
The commission found his argument that the demand did not match construction progress unsubstantiated.
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Commission Rejects Price Hike Allegation
It also rejected Agarwal’s allegation that the developer arbitrarily increased the price, noting that he produced no documents establishing an agreed consideration of Rs 6.65 crore. Finding no deficiency or unfair practice, the commission dismissed his compensation claim.
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