Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
A consumer disputes commission recently directed Lodha Developers and associated companies to refund nearly INR 5 crore to a senior citizen couple after their World Towers apartment booking in Lower Parel was terminated unilaterally. The couple had initially booked a 3 BHK unit with two parking slots under a 20:80 payment plan and faced repeated changes, price hikes, and revised terms before the developer issued a termination letter. The commission found the builder's actions amounted to deficiency in service and unfair trade practices, and also awarded interest and compensation for stress and harassment caused to the couple.
A consumer disputes commission has directed Lodha Developers, along with Shreeniwas Cotton Mills, Jawala Real Estate and Macrotech Developers, to refund nearly INR 5 crore to a senior citizen couple after terminating their residential unit booking without proper agreement or notice. The ruling was delivered earlier this week by a bench led by Poonam Maharshi and Dr Nisha Amol Chavhan. Advertisement
Uttam and Anindita Chatterjee, both retired, had originally booked a 3 BHK apartment of about 2,015 sq ft at World Towers in Lower Parel. They paid for two parking slots and followed a 20:80 payment plan, expecting possession within the agreed timeframe. Over time, they faced repeated communication about changes in project timelines, additional costs, and revised payment requirements.
The couple opted to cancel their original booking when delays and changes became frequent. Lodha Developers then offered them an upgrade to a larger 4 BHK unit with three garages in a different project, The Park, at a higher cost. However, the Chatterjees were not given a clear written agreement detailing the changes, and the developer did not provide a formal proposal summarising the revised arrangement.
By the time the new arrangement was suggested, the couple had already paid significant amounts toward both the original and proposed bookings. In October 2016, the developer communicated a price revision requiring additional payments. When the Chatterjees decided to cancel again, the company informed them that a 10% cancellation fee would apply. Meanwhile, market fluctuations after demonetisation led to property price declines, and alternative units were offered to other buyers at lower costs, while the couple was not given similar concessions.
The couple filed a complaint before the commission, stating they had paid INR 2,83,59,554 but neither received possession nor a refund, and that the termination letter was issued unilaterally. Lodha Developers argued the couple failed to meet payment milestones and that the termination and forfeiture were justified.
After reviewing the case, the commission concluded that the developer's conduct constituted a deficiency in service and unfair trade practices. The panel highlighted that issuing a termination letter without consent and retaining significant payments was not permissible. It directed the companies to refund the amount with 10% interest from the date of termination and to compensate the couple for stress, inconvenience, and harassment.
The order specifies that the refund should be completed within two months of the ruling. The developer has indicated it may challenge the decision, claiming that the facts were presented in a way that favoured the investors.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
