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The Dharwad District Consumer Grievances Redressal Commission has directed a Hubballi-based developer to refund the amounts paid by 83 buyers who had booked residential plots in a proposed layout near Hubballi. The commission found the developer guilty of deficiency in service and unfair trade practices after the promised layout remained undeveloped and the buyers were neither given plots nor refunded their payments. The developer has been ordered to return the full amount paid by each complainant with 10% annual interest, besides paying compensation and litigation costs.
The Dharwad District Consumer Grievances Redressal Commission has ordered a Hubballi-based real estate developer to refund the money paid by 83 plot buyers, along with 10% annual interest, after finding deficiency in service and unfair trade practices in connection with an undeveloped residential layout.
The case relates to Sai Ram City, a proposed residential layout advertised on Survey Nos. 8/1 and 8/2 at Bidanal village near Hubballi. The project was promoted by developer Kaushalya Kamtar, who operated under the names Nachiketa Builders and Sai Baba Developers.
The buyers, many of whom were daily wage workers and employees from lower-income groups, were attracted by advertisements promising residential plots with basic infrastructure. They booked plots by making advance payments and subsequently paying instalments. Sale agreements were also executed in favour of the purchasers.
However, the proposed development did not progress as promised. According to the commission’s findings, even after two to three years, the layout remained undeveloped and none of the buyers received possession of their respective plots. The purchasers also did not receive refunds despite making repeated demands to the developer.
With the issue remaining unresolved, all 83 buyers filed separate complaints before the Dharwad consumer commission. The complaints brought the buyers’ payments and the failure to develop and allot the promised sites before the consumer forum.
The commission, headed by chairman Ishappa Bhute, noted that the buyers had been induced to invest on the assurance that developed residential plots with basic infrastructure would be provided. It further observed that the developer had collected more than INR 5 lakh from each complainant through advances and instalments, while the layout remained undeveloped.
Based on these circumstances, the commission held that the developer had collected substantial amounts from the purchasers without fulfilling the commitments made to them. It treated the failure to provide the promised plots or return the money as deficiency in service under the Consumer Protection Act.
The consumer panel has consequently directed Kamtar to refund the entire amount paid by each of the 83 complainants, with interest calculated at 10% per annum from the date of each individual payment. The refunds are to be made within one month of the order.
In addition to the principal amounts and interest, the commission has directed the developer to pay compensation and litigation costs to the complainants. The additional relief recognises the financial and legal burden borne by the buyers while pursuing the matter before the consumer forum.
The case highlights the consequences developers can face when promised residential plots are not developed or delivered despite purchasers making payments. For the 83 buyers involved, the commission’s order provides for recovery of their payments along with interest rather than requiring them to continue waiting for the proposed layout to be completed.
The order also places emphasis on the responsibility of developers to fulfil representations made to prospective purchasers and deliver the property or services for which payments have been accepted.
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