Pune: In a significant ruling highlighting accountability in real estate transactions, the Pune Additional District Consumer Disputes Redressal Commission has penalized a builder for failing to refund money for a cancelled plot project and issuing cheques that subsequently bounced. The consumer court has directed the builder to pay back the remaining balance along with a 9% annual interest rate, bringing relief to a local consumer who faced prolonged financial and mental distress.
The formal complaint was filed by Chinchwad resident Madhusudan Pralhad Joshi against Rajesh Surajmal Bhandari, the proprietor of ‘Shri Balaji Developers’. Advocate Shriram Karandikar effectively represented the complainant before the consumer forum, presenting details of the transaction and the subsequent defaults by the developer.
According to the case details, the complainant had booked an 11-gunta plot in the builder’s project titled ‘Kokon Vaibhav’. Between 2020 and 2021, the consumer deposited a total of ₹3 lakh in installments towards the plot. However, due to unforeseen circumstances, the builder eventually canceled the entire project.
As per established norms and consumer rights, it was the builder’s legal obligation to refund the entire amount collected. Despite this mandate, the developer initially returned only ₹65,000. When the complainant repeatedly pursued the developer for the remaining balance, four cheques amounting to ₹2,20,000 were handed over. Unfortunately, all of these cheques bounced upon presentation at the bank, leaving the consumer with no choice but to knock on the doors of the consumer commission.
Demonstrating complete disregard for judicial procedures, the builder even refused to accept the official notice dispatched by the commission. Consequently, the forum proceeded with an ex-parte hearing against the builder, thoroughly evaluating the merits of the grievance.
The panel comprising Additional District Consumer Disputes Redressal Commission President Arun Gaikwad, along with members Pranali Sawant and Kanchan Gangadhare, delivered the judgment. The commission ordered the builder to refund the remaining balance of ₹3,36,000 along with a 9% annual interest rate. Furthermore, taking into account the severe mental agony inflicted upon the consumer and the expenses incurred during the legal battle, the builder has been directed to pay an additional compensation of ₹40,000 towards mental harassment and litigation costs.
Legal experts note that this judgment serves as a strong warning to developers who fail to honor refund commitments upon project cancellations and issue dishonored financial instruments to aggrieved home and plot buyers.
