Archive · 24 Jul 2026
Mumbai Commission Orders Builder to Refund ₹10.45 Lakh
A 72-year-old retired teacher named Shobhnath Ramkumar Yadav booked a flat in Mumbai in 2009.
He paid ₹10.45 lakh to the builder, Srusti Raj Enterprises, which promised to deliver the flat within three years.
However, the builder did not complete the project or refund the money.
After many years, the Mumbai Consumer Commission ordered the builder to refund the money with interest and pay compensation for the trouble caused.
The builder did not show up in court, and the decision was made in favor of the teacher.
The Mumbai Consumer Commission ordered a Chembur-based builder to refund ₹10.45 lakh with 8% annual interest to a 72-year-old homebuyer.
The homebuyer, Shobhnath Ramkumar Yadav, booked a flat in 2009 but did not receive possession despite paying 30% of the sale price.
The Commission awarded ₹50,000 as compensation for mental harassment and ₹10,000 for litigation costs.
The builder unilaterally cancelled the booking in 2016 but failed to refund the amount, prompting the consumer complaint.
The developer remained absent during the proceedings, and the matter was decided ex parte.
- Who
- Shobhnath Ramkumar Yadav, a 72-year-old retired teacher, and Srusti Raj Enterprises (India) Ltd., a Chembur-based real estate developer.
- What
- The Mumbai Consumer Commission ordered the builder to refund ₹10.45 lakh with interest and compensation to the homebuyer for failing to deliver the promised flat.
- When
- The booking was made between September 2009 and March 2010, and the complaint was filed in September 2024.
- Where
- The residential project is located in Tilak Nagar, Chembur, Mumbai.
- Why
- The builder failed to deliver the flat within the promised three years and did not refund the amount paid by the homebuyer.
Homebuyer's Perspective
Builder's Perspective
Refund and Compensation
Homebuyer's Perspective
The homebuyer deserves a full refund with interest and compensation for mental harassment due to the builder's failure to deliver the flat.
Builder's Perspective
The builder may argue that unforeseen circumstances or financial difficulties prevented the completion of the project and timely refund.
Deficiency in Service
Homebuyer's Perspective
The builder's failure to refund the money and complete the project constitutes a clear deficiency in service and unfair trade practice.
Builder's Perspective
The builder might claim that the homebuyer was informed about the cancellation and that the refund process was delayed due to administrative issues.
- Complainant
- Shobhnath Ramkumar Yadav
- Developer
- Srusti Raj Enterprises (India) Ltd.
- Flat Price
- ₹34.80 lakh
- Amount Paid
- ₹10.45 lakh
- Compensation Awarded
- ₹50,000
- Litigation Costs
- ₹10,000
- Interest Rate
- 8% annually
- Location
- Chembur, Mumbai