Mumbai, October 8, 2026: The Maharashtra State Consumer Disputes Redressal Commission has pulled up Bandra-based firms Rockline Construction Company and RNA Corporation for allegedly selling a flat booked by a consumer to a third party, despite the complainant having paid a booking amount of Rs. 5 lakh.
The commission also held the developers guilty of deficiency in service and unfair trade practice for failing to execute a registered agreement for sale, which would have enabled the complainant to process his bank loan.
The commission observed that the developers’ conduct in selling the allotted flat to a third party and subsequently demanding an increased rate of Rs. 7,000 per sq. ft., instead of the originally agreed rate of Rs. 3,100 per sq. ft., reflected a clear intention to profiteer at the expense of a bona fide consumer.
Commission Gives Developers Two Options
In its order, the commission gave the developers two options. Under the first option, they have been directed to hand over physical, vacant and peaceful possession of an alternative 763 sq. ft. flat in the same project or in a project in the immediate vicinity of Mira Road (East), at the originally agreed rate of Rs. 3,100 per sq. ft., after receiving the balance consideration from the complainant.
The developers have also been directed to execute and register the agreement for sale for the alternative flat within 60 days of the order, which is September 2026.
As an alternative, if the developers are unable to provide such a flat, the commission directed them to jointly and severally refund Rs. 85 lakh to the complainant with 10 per cent annual interest from the dates of the respective payments until actual realisation.
They have also been directed to pay Rs. 25 lakh as compensation towards the escalation in residential property prices, enabling the complainant to purchase a similar flat in the same locality. In addition, the developers have been directed to pay Rs. 1 lakh towards mental agony and harassment and Rs. 50,000 towards litigation costs.
Flat Already Sold To Third Party
The commission further noted that the specific flat could not now be handed over to the complainant as it had already been sold and occupied by a third party.
It therefore held that he was entitled to an alternative flat of identical dimensions in the same vicinity or adequate compensation to enable him to purchase a similar property at the current market rate.
The commission consequently held both developers jointly and severally liable for deficiency in service and unfair trade practices and partly allowed the consumer complaint.
Consumer Booked Flat In 2009
The complaint was filed by Bhupendra D. Trivedi, a resident of Mira Road, who stated that he had booked a 763 sq. ft. flat, identified as Unit-3L/14, in the developers’ residential project in 2009 after seeing advertisements offering flats at Rs. 3,100 per sq. ft. He paid an initial booking amount of Rs. 5 lakh.
According to the complainant, he required a registered agreement for sale to process a bank loan for the balance amount. He claimed that he had also submitted proof of his loan eligibility for Rs. 24 lakh from Greater Bombay Co-operative Bank.
In October 2010, the developers allegedly sent him a letter promising to initiate the registration process, while also warning that a 24 per cent annual interest penalty would be imposed for delayed payments.
The complainant alleged that despite repeatedly insisting on registration so that he could obtain the bank loan, the developers stopped responding to him.
He claimed that repeated visits and calls made him realise that the developers were deliberately avoiding finalising the transaction and were trying to force him to withdraw from the deal so that the flat could be sold at an inflated market price.
Developer Demanded Higher Rate
He further told the commission that when he approached the developers in March 2014, ready to pay the entire balance along with bank interest, they refused to honour the original price and instead demanded Rs. 7,000 per sq. ft.
He subsequently inspected the site and found that the building had been completed, a housing society had been formed and the flat he had booked had allegedly already been sold and handed over to a third party.
The complainant alleged that the developers had also violated the Maharashtra Ownership Flats Act by failing to register the agreement for sale.
He claimed that the unauthorised resale of the flat had caused him substantial financial loss as property prices in the area had increased to between Rs. 6,000 and Rs. 6,200 per sq. ft. He sought either Rs. 85 lakh as compensation or possession of a similar 763 sq. ft. flat, besides litigation costs.
Developers Fail To Appear
The developers, however, did not file their written version in the proceedings. The commission noted that a “no written version” order had already been passed against them in July 2017. Despite a direction to remain present, neither developer appeared at the final hearing on May 6, 2026. The commission therefore heard the complainant’s advocate finally.
The commission said that since the developers had neither filed their written version nor remained present despite specific directions, the complainant’s allegations remained “completely unchallenged and uncontroverted”.
It also found that the payment receipts and bank statements established that he had paid Rs. 5 lakh towards the booking in 2009. A letter from the bank to the developers further supported his claim that he was ready and willing to pay the balance, subject to execution of the statutory agreement for sale.
Also Watch:
The commission observed that Section 4 of the Maharashtra Ownership Flats Act, 1963, casts a statutory obligation on a builder or developer to execute and register an agreement for sale before accepting more than 20 per cent of the sale price as advance. It held that the developers’ failure to execute the registered agreement amounted to deficiency in service and an unfair trade practice.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
