Mumbai

Observingthat a developer cannot retain public funds while failing to deliver flats within a reasonable timeframe, the Maharashtra Consumer Commission here has directed Bombay Dyeing and Bombay Realty to refund Rs 1.95 crore to two Jamshedpur-based homebuyers.

A bench comprising presiding member Poonam Maharshi and member Nisha Amol Chavhan directed the developers to jointly and severally refund the principal sum of Rs 1.95 crore alongside Rs 1.5 lakh towards compensation and litigation costs for "deficiency in service and unfair trade practice".

According to the complaint, the Jameshedpur residents had booked a 1,941 sq ft apartment along with two car parking spaces in Dadar East for a total price of Rs 9.94 crore.

Between August and October 2014, the buyers were issued an allotment letter under a 30:70 payment plan, and they paid Rs 1.95 crore, including the initial booking amount of Rs 25 lakh, the complainants claimed. They alleged that despite adhering to the initial instalment schedule, the developers, Bombay Dyeing and Manufacturing Co Ltd and Bombay Realty, delayed construction by over a year.

While discussions were underway to revise the payment schedule to a construction-linked plan, the developer continued issuing demands under the old scheme and sent a pre-termination letter in September 2016 threatening cancellation and forfeiture.