MUMBAI: The Maharashtra State Consumer Commission has ordered Emnoy Properties India LLP, along with its partners and other real estate entities, to refund Rs 12.5 lakh, plus 12% annual interest, to Mumbai residents Mohammed Zain Khan and his mother, Naseema Khan, over a dispute concerning a bungalow plot in Lonavala. Additionally, they awarded Rs 2 lakh for mental distress and Rs 50,000 for legal costs.
Customers reported project delays and title disputes.
The complaint revealed that in 2012, Mohammed Zain Khan, an attorney, and his mother purchased a bungalow plot under the “Valvan Valley” project, assured that the development would feature a clear title along with amenities like roads and sports facilities. They paid Rs 12.5 lakh towards the total cost of Rs 55 lakh and signed a sale agreement in 2014. However, despite numerous requests, they never received the plot’s possession. They later found out that the land was involved in legal disputes and that development was stagnant.
The complainants claimed that the developers proposed either a refund or alternative plots in another project, “Lions Valley,” but neither option came to fruition.
Developers refuted the accusations, arguing that the buyers were aware of the title problems from the beginning. They maintained that the booking was canceled by mutual agreement and that part of the payment had already been returned. However, the Commission concluded that the developers had accepted Rs 12.5 lakh yet failed to deliver possession.
The Commission highlighted that the developers couldn’t produce adequate evidence of a clear and marketable title for the land.
Additionally, while discussions about alternate plots occurred, no final or formal agreements had been created. Holding the developers accountable for service deficiencies and unfair trade practices, the Commission directed them to refund the complainants’ payment, including 12% annual interest from the payment date until full recovery. Compensation for the distress experienced by the complainants was also awarded, along with legal expenses.
The Commission noted that once a developer accepts money from a buyer and promises possession within a set timeframe, it is obligated to either complete the project and deliver the property or refund the amount with due compensation. The developers’ ongoing failure to provide possession, combined with uncertainties surrounding the land, caused financial loss and emotional distress to the complainants.
The developers are instructed to comply with the order within 60 days; failing to do so will result in a higher interest rate on the awarded amount.
