CHANDIGARH: The District Consumer Disputes Redressal Commission in Chandigarh has issued a ruling that may bring relief to numerous homebuyers affected by stalled real estate projects. The commission ordered a housing group and another agency to refund Rs 2.4 lakh along with 9% annual interest to a complainant who had not received possession of a flat booked over seven years ago.
The Commission held both entities accountable for deficiencies in service and unfair trade practices, additionally awarding Rs 20,000 as compensation and litigation costs to the complainant, Akhil Awasthi.
Akhil Awasthi, a resident of Sector 44, had secured an unconstructed flat in the housing group’s project in Sector 116, Mohali, in early 2018. The agreement signed on February 27, 2018, stated that the flat would be delivered by December 2018, and he paid a total of Rs 2.4 lakh through various installments, also obtaining a Rs 20 lakh home loan from the United Bank of India. However, construction did not progress as promised.
After several follow-ups, the builder proposed an upgrade to a larger flat (918 sq ft) for Rs 28.5 lakh, but no new agreement was executed, and his request to transfer the loan to Canara Bank was unsuccessful.
Despite receiving a substantial part of the payment, the builders neither delivered the flat nor refunded the money. Awasthi filed a consumer complaint in 2021, which was resolved on September 18, 2025.
The Commission noted that possession was never offered, and the money was never refunded. Referencing a 2018 Supreme Court ruling, it emphasized that homebuyers cannot be made to wait indefinitely and are entitled to receive a refund and compensation in such instances.
The builders claimed the delay was due to irregular payments by the complainant, asserting their right to forfeit the amount. However, the Commission dismissed this defense, stating there was no evidence supporting that the complainant breached any terms and that the builders unjustly retained his money.
This case illustrates how regulatory and legal avenues can effectively support homebuyers facing significant delays or non-delivery of properties.
