Pune: The National Consumer Disputes Redressal Commission (NCDRC) has ordered a real estate firm and its proprietor to refund the entire principal amount collected from 113 homebuyers, plus interest. This relief comes after a 14-year legal battle, with the total liability estimated to exceed Rs7 crore.The commission found that the developer induced buyers to invest in housing projects proposed on land that govt records showed had been acquired as far back as 1978 for a public irrigation project.The NCDRC bench, comprising its president Justice A.P. Sahi and member Bharatkumar Pandya, directed the builder to refund the Rs3.16 crore collected, along with 9% interest from the dates of payment. This must be paid within three months; otherwise, the interest rate will escalate to 12% per annum until the final payment is made.The judgment, delivered on July 1, stems from a complaint filed by the Akhil Bhartiya Grahak Panchayat, Pune, and an ad hoc committee represented by Vijay Shroff and Mukhtar Shaikh on behalf of 113 purchasers of the Shalini Lake View, Shalini Garden, Shalini Heights, and Shalini Hill View projects. “Justice is served in this case and we are expecting the builder to reimburse the amount with fine at the earliest,” Vijay Sagar, the counsel for the complainants said.According to the complaint, the builder collected funds between 2009 and 2010 despite the land having been vested with the state’s minor irrigation department for a percolation lake project decades earlier.The commission noted that the complainants were “kept completely in the dark” regarding the acquisition. It highlighted that the builder executed purchase agreements without disclosing that a 1978 land acquisition award had declared the land “absolutely vest in govt free from all encumbrances.”Evidence presented during the proceedings revealed that authorities had rejected the developer’s construction sanctions as early as 2003. Town planning officials had categorically stated that the land fell within a non-development zone and could not be used for residential purposes.The project’s instability was further highlighted on Dec 25, 2010, when Zila Parishad authorities demolished the “Sea” building, one of the structures under the Shalini Lake View project.The builder defended its actions by claiming a “bona fide belief” in the property title, arguing that revenue records did not reflect the acquisition. However, the commission dismissed this defense, noting that the builder continued to accept bookings even after their applications for temporary injunctions against govt authorities were rejected by civil courts in 2009 and 2010.Concluding that the developer knowingly realised money despite legal impediments, the commission described the entire project setup as “a clear eyewash” and a failure to provide the promised housing. Advocate Shakul R Ghatole, the counsel for the builder, said, “We are evaluating the order and may consider filing an appeal.”
