Panel directs builder firm to refund customer who didn't get promised flat

New Indian Express

12-05-2025

THIRUVANANTHAPURAM: The Kerala State Consumer Disputes Redressal Commission has directed a builder company to give full refund and compensation to a customer who did not get the promised apartment.
The commission rejected the company's argument citing insolvency proceedings before the National Company Law Tribunal (NCLT).
The complainant, a Thiruvananthapuram native, had booked a 3-bedroom apartment in a project proposed at Karakulam village in the district. The total cost was Rs 55,17,277. As per the agreement, construction had to be completed within 18 months from the date of agreement i.e., March 18, 2017.
Though the complainant paid Rs 43,00,123, the work was not carried out by the builder. The builder also did not respond to the communications sent by him.
The complainant had availed a housing loan of Rs 41 lakh at 8.5 per cent rate of interest from the Punjab National Bank Housing Finance.
The former managing director of the company filed an affidavit before the SCDRC along with the order passed by the NCLT Kochi branch. He cited that the NCLT has appointed an Insolvency Resolution Professional and they are incapacitated in participating in the proceedings of the company.
The SCDRC bench comprising its president Justice B Sudheendra Kumar, judicial member Ajith Kumar D and member KR Radhakrishnan heard the case. Advocates Ponnan Alex and Sreevaraham NG Mahesh appeared for the petitioner.
The commission, however, observed that Section 3 of the Consumer Protection Act, stipulates that an aggrieved consumer can approach the Consumer Disputes Redressal Commission in addition to the existing remedies.
Proceedings pending before the NCLT is not a bar for the complainant to approach the commission for redressal of grievances, it said.
The commission found deficiency in service on the part of the builder. It directed the company to refund Rs 43 lakh with 9 per cent interest besides Rs 3 lakh as compensation and Rs 20,000 for litigation costs.
Case file
Apartment project at Karakulam in Thiruvananthapuram
Consumer paid Rs 43 lakh
He availed a housing loan for Rs 41 lakh @ 8.5 pc interest
Builder failed to deliver apartment
Commission's direction to builder firm
Refund Rs 43 lakh at 9 per cent interest
Rs 3 lakh compensation
Rs 20,000 as litigation costs