Mumbai Couple To Get 1.05 Crore Refund After 13-Year Wait As Builder Sold Same Flat Twice

A Mumbai couple, who waited more than 13 years for possession of their home, has secured relief from the Maharashtra State Consumer Disputes Redressal Commission. In an order passed on June 17, 2026, the commission found that the flat was not delivered and it was sold to somebody else; hence, it directed developers and their associated firms to refund INR 1.05 crore with interest.

The complaint was filed by Mohamed Jalil Abdulla Harnekar and his wife Asger Shabnam Mohamed Jalil Harnekar. The dispute began in 2013 when the developer approached the couple for a residential project in Dongri, south Mumbai. 

The developers said that construction would begin in November 2013 and possession would be handed over within 3 years after approvals were obtained. After this, the couple booked a 660 sq ft flat for INR 60 lakh. An allotment letter was issued on November 28, 2013. Before that, they had paid INR 30 lakh on August 7, 2013. They later paid another INR 10 lakh in cash through three instalments. Some of the money was arranged by selling gold ornaments.

However, the developers did not complete the project and agreed that permissions had not been obtained. Instead of returning the money, the developers proposed adjusting the amount paid towards another project called 'Bay'. View in Mazgaon. They also promised INR 10 lakh as compensation for the failed Dongri project. The couple agreed to the proposal.

Under the new arrangement, the complainants were allotted Flat No. 503 in the Mazgaon project. After adjustment of money from the earlier project, the couple paid INR 40 lakh more between January 2016 and September 2018. But again, the developers never executed or registered an agreement for sale as required under law.

In September 2019, the developers informed the couple that possession of the Mazgaon flat could not be given either. On September 7, 2019, the developer issued back the money, but the cheques bounced. The couple later discovered that the flat allotted to them had been transferred to a third party despite being fully paid for.

The commission proceeded ex parte after the developers failed to appear despite notices and a public notice issued in February 2025. The commission noted that they had taken the life savings for more than a decade and had suffered financial and emotional hardship.

They also travelled over 150 km from Mangaon in Raigad district to Mumbai. The commission directed the developers and associated parties to jointly refund INR 1.05 crore with interest at 10 per cent per annum from June 29, 2021, until payment is made. It also awarded INR 50,000 as compensation for physical harassment and mental distress, along with INR 25,000 towards litigation costs.

The developers have been given 60 days to comply with the order. If they fail to do so, the interest rate on the principal amount will increase to 15 per cent per annum until the entire amount is paid. Consumers facing such issues can seek assistance from the National Consumer Helpline at 1915.