Mumbai Redevelopment Dispute: Consumer Commission Orders Khar Developer To Compensate Homebuyer For Delay And Area Shortfall

Mumbai Redevelopment Dispute: Consumer Commission Orders Khar Developer To Compensate Homebuyer For Delay And Area Shortfall

The Maharashtra Consumer Commission has ordered a Khar-based developer to compensate a homebuyer for delayed possession, unpaid rent compensation, a 225 sq ft area shortfall and mental agony. The commission also directed the developer to provide a parking space, complete legal formalities and pay compensation based on the prevailing ready reckoner rate.

Pranali LotlikarUpdated: Tuesday, June 02, 2026, 06:22 AM IST
Mumbai Redevelopment Dispute: Consumer Commission Orders Khar Developer To Compensate Homebuyer For Delay And Area Shortfall
The Consumer Commission has directed a Khar-based developer to compensate a flat purchaser over delayed possession, reduced flat area and pending legal compliances | Representational Image

Mumbai, June 1: The Maharashtra State Consumer Disputes Redressal Commission has directed a Mumbai-based developer and its partners to compensate a flat purchaser for delayed possession, unpaid rent compensation, a deficit in flat area, and mental agony arising out of a redevelopment project in Khar (West).

The commission has allowed a complaint filed by Sunder H. Mahtani against M/s Jascons Developers and its partners. The complainant had booked a flat in the redevelopment project “Jascons Heights” at Dolas House, Khar (West), under an agreement executed on August 4, 2010.

Commission finds deficiency in service

“The Complainant is entitled to relief. The Opposite Parties have failed to discharge their contractual and legal obligations, thereby causing financial loss, hardship, and mental agony to the Complainant. Hence, we direct the Opposite Parties to jointly and severally give one car parking space to the Complainant as per the agreement and complete all legal formalities, including the Occupation Certificate.”

The commission also ordered them to pay rent compensation of Rs 60,000 per month from August 2016 to August 2020.

According to the complaint, the developer had agreed to allot a flat measuring 750 sq ft carpet area along with one car parking space and to pay monthly rent compensation until possession was handed over. However, the project suffered substantial delays, construction remained incomplete for years, and the developer allegedly failed to pay the agreed compensation.

The complainant further alleged that although the agreement promised a 750 sq ft usable carpet area, the flat ultimately provided measured only about 525 sq ft, resulting in a shortfall of 225 sq ft. He also contended that possession was not legally handed over as the developer had merely given the keys in August 2020 without obtaining the Occupation Certificate.

Developer’s defence not considered

The commission noted that the developers failed to comply with an earlier order directing payment of costs as a condition for accepting their written statement. Consequently, the written statement was ignored, while one of the opponents was proceeded against ex parte. The commission held that the complainant’s evidence remained unchallenged and established deficiency in service and unfair trade practice.

Observing that the approved plans reflected a flat area of only 525 sq ft against the promised 750 sq ft, the commission concluded that the developer had delivered a flat with a 225 sq ft deficit, contrary to the agreement. It further held that handing over keys without completing legal formalities, including obtaining an Occupation Certificate, did not constitute valid possession.

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Compensation awarded for delay and area shortfall

Additionally, the commission directed the opponents to compensate the complainant for the 225 sq ft deficit area at the prevailing ready reckoner rate applicable as of August 2020, when possession was handed over.

The developer was also ordered to pay Rs 2 lakh towards compensation for deficiency in service, delayed possession, and mental agony, along with litigation costs of Rs 25,000.

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