A Howrah District Consumer Disputes Redressal Commission has ordered a developer to return Rs 5.75 lakh paid by two brothers for a flat, after finding that the property was sold to another buyer while their agreement was still in force. The commission also awarded Rs 1 lakh as compensation and Rs 5,000 towards litigation costs, taking the total relief to Rs 6.8 lakh.
The dispute began on November 10, 2020, when the brothers agreed to purchase a 650-square-foot flat on the first floor of a multi-storey building in Howrah for Rs 10.4 lakh. They paid Rs 5.75 lakh upfront, while possession was promised by the end of April 2021.
The buyers later discovered that the developer had sold the entire first floor to another purchaser through a registered sale deed. They approached the developer several times, seeking either possession of the flat or repayment of the money. After their requests allegedly did not receive a response, they issued legal notices demanding a refund and subsequently approached the consumer commission.
Before the commission, the developer disputed the brothers’ account of the transaction. He claimed that the Rs 5.75 lakh was brokerage for introducing him to the owners of another property and was not an advance for the flat. He also claimed that Rs 2 lakh had already been paid or adjusted during disputes between the parties, leaving Rs 3.75 lakh outstanding.
The developer further argued that the brothers had failed to pay the remaining amount within the agreed period, which, according to his written response, forced him to sell the flat to another purchaser. The commission rejected this explanation after finding no documentary evidence to support the claims about brokerage, repayment, adjustment or a buyer default.
According to the commission’s findings, the developer admitted receiving Rs 5.75 lakh but could not substantiate that any part of the amount had been returned or adjusted. The commission described the explanation as a concocted story and held that the developer had failed to establish that the brothers defaulted on their payment obligations.
The commission concluded that selling the flat to another buyer while the agreement with the original purchasers remained in force amounted to deficiency in service and an unfair trade practice. Its order requires the developer to refund the full booking amount, pay compensation for the buyers’ loss and inconvenience, and cover their litigation expenses.
