BENGALURU: A real estate firm, which failed to deliver a homebuyer his flat, and its six directors have been ordered by the consumer disputes redressal commission to refund him Rs 15 lakh with 7.5% annual interest from Oct 2018, when he had made the payment.
“Customers can’t be made to wait indefinitely for possession. Once a sale agreement is executed, it is the duty of the builder to be transparent in their dealings,” the consumer court ruled.
Kadubeesanahalli resident Narender Kumar, represented by his GPA holder and wife Shiwangi Singh, 32, decided in 2018 to buy a seventh-floor flat in ‘Five Rings‘ project, developed by EXD Projects Pvt Ltd, Richmond Road, on 4 acres and 39 guntas of land in Gudigattanahalli village, Sarjapur hobli, Anekal taluk.
Kumar was offered a final price of Rs 41.4 lakh, and he paid Rs 17 lakh advance for which a sale agreement was made on Oct 27, 2018. But construction remained incomplete and the firm started postponing the work for one reason or another.
Growing tired of the excuses, Kumar initiated a request for refund via email and the firm, on Aug 18, 2022, agreed to pay back the money in four instalments: 10% by the end of Sept 2022, 20% by Oct-end, 30% by Nov-end, and 40% by Dec-end. On Sept 23, 2022, the firm refunded Kumar Rs 2 lakh but further tranches remained elusive.
To escalate things, Kumar issued a legal notice to the firm on Feb 27, 2023 seeking the balance refund, but nothing came to pass. He lodged a complaint against EXD Projects Private Ltd and its six directors with the consumer forum on Jan 10, 2024. Upon issuance of notice, the firm failed to appear or respond and was consequently placed ex parte.
After going through all the documents and evidence, the commission observed in its order dated Feb 3, 2025 that despite repeated requests, the real estate firm had failed to refund the entire amount, which is nothing but an unfair trade practice amounting to deficiency in service. The commission also noted that once a sale agreement is executed, the developer is duty-bound to be transparent in its dealings, but the company acted contrary to the agreement and caused an inordinate delay in handing over possession. Kumar rightly sought a refund of the amount with interest, and he can’t be made to wait for a long time, the forum said.Observing that it would be “manifestly unreasonable” to expect a buyer to wait indefinitely for property, the commission directed the firm and its six directors to refund Kumar Rs 15 lakh, noting that had the amount been invested in a property or a nationalised bank, the buyer could have earned significant returns. To compensate for the financial loss, the court awarded 7.5% interest per annum from Oct 27, 2018, until the realisation of the amount, apart from Rs 2,000 as litigation charges.
