HYDERABAD: The Ranga Reddy District Consumer Disputes Redressal Commission has mandated a real estate company to refund ₹42.04 lakh, along with interest, to a homebuyer after the firm failed to deliver a promised residential plot in a pre-launch project.
The complainant, Gaurav Khandelwal, 43, from Gachibowli, reported that he paid ₹32.34 lakh in 2022 for a 308-square-yard plot in a proposed layout. Per the agreement, the company was required to obtain HMDA approval, develop the site within a year, and register the plot in his name. They also provided a buy-back option with a 30% return if the project didn’t materialize.
Despite multiple follow-ups, the company failed to secure approvals or develop the site even after 16 months. When Khandelwal invoked the buy-back clause, the company initially agreed and issued a cheque for ₹42.04 lakh but later did not inform him that the cheque was dishonored due to insufficient funds. Even after he raised this issue, the firm assured him that the refund would be processed. Ultimately, they ceased all communication.
After examining the evidence, the commission found the developer guilty of service deficiency and unfair trade practices. The bench observed, “It is clear that the opposing party failed to register the plot as per the agreement terms and issued a dishonoured cheque, constituting unfair trade practices and causing financial loss to the complainant.”
The commission directed the company to pay the principal amount plus 6% annual interest starting from December 14, 2023, when the cheque bounced. Additionally, they ordered compensation of ₹20,000 for financial loss and ₹10,000 for legal costs. The company was given 45 days to comply; after that, the interest rate would rise to 9% per annum.
