Mumbai’s South Mumbai District Consumer Dispute Redressal Commission recently issued a significant ruling against real estate firm Lakdawala Developers, mandating the company to refund ₹17 lakh with 8% interest from 2010 to a buyer who claimed he never received possession of a flat he had booked. In addition to the refund, the commission ordered the developer to pay ₹50,000 for mental distress and ₹25,000 towards legal fees.
Decade-Long Wait
Shamim Solanki, a resident of Chinch Bunder in Mumbai, had booked a flat with Lakdawala Developers back in 2010, with assurances from the company that he would receive possession within a few years. However, despite repeated follow-ups and multiple attempts over the years to either receive the flat or obtain a refund, Solanki found himself in a prolonged wait, extending into 2021. With no response from the developer and his pleas ignored, he decided to take legal action and approached the consumer commission in 2023.
Commission’s Ruling
After issuing a notice to Lakdawala Developers and receiving no response, the commission ultimately ruled in Solanki’s favor. In its judgment, the commission held the developer accountable for deficient service, directing them to return the ₹17 lakh booking amount, along with 8% annual interest from the booking date. The commission also awarded compensation for the mental anguish and legal expenses Solanki had incurred during the decade-long ordeal.
Similar Case Reported
In a similar judgment, the Mumbai Suburban Additional Consumer Dispute Redressal Commission ordered partners Iliyas Patel and Abdul Karim Abdul Rahim of M/s Twin and Deccan to refund ₹24.75 lakh with 12% interest from 2010 to Ziyaur Rehman, a resident of Kurla. Rehman had booked a 1,100 sq. ft. flat in Andheri through the developers in 2010 and paid half of the ₹49.5 lakh cost. However, despite his repeated efforts to secure an agreement or possession, Rehman received neither, with the developers eventually halting all communication.
Legal Action
Frustrated by the delays and lack of communication, Rehman took his case to the consumer commission in 2023, where he filed a formal complaint. Notices issued to the developers were reportedly returned with the note that the addressees no longer resided at the listed addresses. This failure to respond led the commission to rule in favor of Rehman, ordering the developers to refund his amount with interest and pay additional compensation of ₹1 lakh for mental harassment, along with ₹20,000 for legal costs.
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