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2026 Supreme(Online)(SCDRC) 3714

STATE CONSUMER DISPUTES REDRESSAL COMMISSION
S.P.Tavade, President, Vijay C. Premchandani, Member
Nakshtra Builders & Developers – Appellant
Versus
Sugandha Raghunath Naik – Respondent
APPEAL NO.A/19/628



Advocates:
For the Appellants/Petitioners: P.D.Desai
For the Respondents: Vinit Jawale

A developer cannot indefinitely delay project completion or provide inferior construction contrary to the agreement; in such cases, a consumer is entitled to a refund of their payments if the developer refuses to rectify defects or handover habitable premises within a reasonable timeframe.

Headnote:The dispute centers on a consumer complaint regarding deficient services and construction delays by a developer. The consumer, a retired teacher, booked a flat with the developer, paying a significant portion of the consideration, but failed to receive possession or the quality of construction promised in the agreement. Following an architect's report confirming construction deficiencies, the District Consumer Commission ordered a refund of the amount paid, compensation, and costs. The core issues were whether the delay in delivery was justified by government policy changes and whether the consumer was entitled to a refund despite originally seeking possession. The Tribunal held that the developer had admitted their status as building professionals and that the consumer was entitled to quality services under their agreement. The prolonged failure to deliver standard-compliant housing justified the decision to order a refund, as the property remained in an unhabitable condition. The appeal filed by the developers is dismissed, and the order of the District Consumer Commission is confirmed.

Table of Content
1. procedural background and foundational facts of the complaint. (Para 1 , 2 , 3 , 4)
2. assessment of construction quality deficiency and entitlement to refund. (Para 5 , 6 , 7 , 8)

FINAL ORDER

(Dt.09/06/2026)

Per Hon’ble Justice S.P.Tavade – President

1. Being aggrieved and dissatisfied with the order passed by the Ld. District Consumer Commission, Sindhudurg in consumer complaint no.RBT/CC/17/47, dated 24/04/2019, the original opponents have preferred this appeal. The parties to this appeal shall be herein after called and referred to as per their status in the original consumer complaint.

2. The facts giving rise to the present appeal can be summarized as under:-

The complainant is a retired Primary School Teacher. She was in need of accommodation in the year 2010. The opponents had started a Project known as “Nakshatra Residency” at Village Kudal. The complainant approached the opponents and booked a flat bearing no.4 admeasuring area of 602.75 sq.ft. (56.01 sq.mt.). The agreed rate of construction was Rs.1500/- per sq.ft. The complainant paid a sum of Rs.13,50,000/- to the opponents. The opponents had agreed to hand over the possession of the flat till December 2013. As per the discussion between the complainant and the opponents, the consideration of the flat was agreed to a sum of Rs.16,50,000/-, out of which a sum of Rs.13,50,000/- was paid. The terms and conditions of the construction and the quality of the flat was mentioned in the Agreement. The opponents had also agreed to provide the facilities as mentioned in the Agreement for Sale. The flat was constructed. The complainant took inspection of the flat and realized that the construction of the flat was not made as per the terms and conditions of the Agreement. The quality of the construction of the flat was of inferior. Hence, the complainant issued notice to the opponents as on 10/11/2014, which was replied by the opponents. It was contended that in spite of paying extra amount to the opponents, the opponents have not completed the construction as per the terms and conditions of the Agreement. Hence, the complainant filed the consumer complaint and sought possession of the booked flat with modification and also cost and compensation.

3. The notice of this appeal was issued to the opponents. The opponents appeared and the opponent nos.1 & 2 filed their written statement, which was adopted by the opponent nos.3 & 4. It was admitted in their written statement that the complainant had booked flat bearing no.4 admeasuring area of 602.75 sq.ft. (56.01 sq.mt.) at the rate of Rs.1500/- per sq.ft. and paid a sum of Rs.6,00,000/-. It was contended that the complainant did not pay the entire amount of flat. Therefore, the possession of the flat was not handed over to the complainant. It was contended that the complaint filed by the complainant is not coming within the jurisdiction of the Consumer Court. It was contended that the complainant was demanding extra facilities, which were not mentioned in the Agreement. It was contended that the Project was to be completed before December 2013. But due to the change of the Government Policy, the Project could not be completed till 2015. It was also contended that the complainant was asked to take possession of the flat by paying the balance consideration amount but she refused to take the possession. Therefore, she is not entitled for the relief as claimed. It was also contended that the construction of the flat is as per the terms and conditions of the Agreement. It was contended that the complaint has no merit. Hence, the consumer complaint be dismissed.

4. The complainant and the opponents led their evidence. On the basis of the same, the complaint was allowed but the said decision was challenged by the complainant as well as the opponents by preferring Appeal nos.A/16/1022 & A/16/1073 respectively. The said appeals were allowed and the complaint was remanded back for re-hearing. The parties were given an opport

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