Mumbai Consumer Commission Orders Developer to Refund Rs 86 Lakh Over Delayed Flat Possession

The Mumbai District Consumer Commission has ruled that a homebuyer cannot be expected to wait indefinitely for property possession. The commission directed M/s Soundlines Eco Homes and its partners to refund Rs 86.37 lakh to Mulund resident Tapan Visaria due to significant delays in the 'Sound Delight' project in Panvel, Raigad district.

Case Background

• Booking Details: Visaria booked an 876 sq. ft. flat for Rs 50.52 lakh in 2015.
• Expected Possession: The developer promised possession by December 31, 2016.
• Current Status: The developer failed to deliver the flat, and the project timeline was later extended to September 30, 2026, according to the MahaRERA website.

Commission's Ruling

The commission noted that the developer's failure to meet the deadline constitutes a deficiency in service. The refund order includes:

• The original paid amount of Rs 45 lakh.
• Nine percent annual interest from December 31, 2016, until the date of realization.
• Rs 75,000 as compensation for litigation costs and mental agony.

The commission rejected a separate claim for the reimbursement of bank loan interest, citing Supreme Court precedents. The proceedings were conducted ex parte as the developer did not appear despite receiving legal notices. The complainant's evidence, including bank statements and registered agreements, was deemed sufficient to establish the claims.