GHAZIABAD: The District Consumer Disputes Redressal Commission has ordered two real estate developers to refund a total of ₹7 lakh, plus interest, to a homebuyer. This ruling was made after the buyer did not receive possession of a flat booked back in 2008 due to significant project delays.
The commission has also imposed a ₹10,000 penalty on each developer—Ghaziabad-based M/s Shreya Developwell Private Limited and Delhi-based M/s Sangwan Heights Private Limited—requiring compliance within 30 days.
The ruling, delivered on April 17 by Commission President Anil Kumar Pundir and members Shailja Sachan and RP Singh, stems from a complaint filed by Siksha Bharadwaj and her son Prashu Bharadwaj on May 8, 2023. They initially sought a residential flat from Shreya Developwell, paying ₹6 lakh via checks between 2006 and 2008.
However, the project stalled, and despite assurances that the funds would be refunded with interest, the developers provided four checks in October 2008, later asking for patience. These checks were canceled, and two new checks worth ₹3 lakh each were issued in January 2009, but payment delays persisted.
The complainants were then encouraged to invest in another venture—Sangwan Heights in Rajnagar Extension—developed jointly with the Delhi firm. Trusting this new opportunity, they shifted their investment.
In 2014, the second developer requested an additional ₹1 lakh as a booking fee for the new project, which the complainants paid. Both developers then issued a statement affirming that the earlier payment to Shreya Developwell would be credited toward the Sangwan Heights project.
Although the project was slated for completion by 2018, the complainants never received an allotment letter or possession of the flat.
Between 2020 and 2021, when the complainants sought a refund, the developers cited COVID-19 pandemic-related delays and continued to postpone repayments.
The complainants subsequently turned to the commission for assistance. Notices were issued to both developers, but in the absence of replies, the case was heard ex parte.
After reviewing submitted affidavits and documents, the commission found that ₹3 lakh remained with Shreya Developwell and ₹4 lakh—with the ₹3 lakh adjustment and an extra ₹1 lakh—was held by Sangwan Heights.
Both developers were ordered to refund the respective amounts with interest. Shreya Developwell is to pay ₹3 lakh plus 6% annual simple interest from May 8, 2023, until full payment is made. Additionally, it was directed to pay 6% annual simple interest on the adjusted amount from January 17, 2008, to June 17, 2016.
Sangwan Heights was instructed to return ₹1 lakh with 6% annual simple interest from the complaint filing date, along with ₹3 lakh and interest from June 17, 2016, until full payment is made.
The commission emphasized that despite repeated assurances, the developers failed to deliver the flat or refund the money, ruling that the complainants are entitled to both a refund and compensation.
