Mumbai Consumer Commission Orders Poddar Housing To Refund ₹1.47 Lakh To Flat Buyer, Pay ₹30,000 Compensation And Costs

Mumbai, November 14, 2026: The District Consumer Disputes Redressal Commission, Mumbai Suburban, has directed Poddar Housing (Poddar Riviera Phase-I) to refund Rs 1.47 lakh to a flat buyer after finding deficiency in service for failing to return the booking amount despite agreeing to refund it after deducting Rs 25,000.

The commission also directed the developer to pay ₹20,000 as compensation for mental agony and harassment and ₹10,000 towards litigation costs.

The order was passed on a complaint filed by Malad resident Shyamsunder Madanlal Varma. According to the complaint, Varma had booked a flat in Poddar Riviera Phase-I, located at Mharal village near Shahad railway station in Kalyan, and paid ₹1,47,175 towards the consideration. However, after his housing loan was not sanctioned by any bank, he requested the developer to cancel the booking and refund the amount.

Despite repeated requests through telephone calls and emails, the developer failed to return the money. The complainant also issued a legal notice on February 17, 2022, seeking a refund.

Developer Had Agreed To Refund

During the proceedings, the commission noted that email correspondence dated December 23 and 27, 2021, showed that the developer had agreed to refund the booking amount after deducting ₹25,000. However, it failed to establish any specific contractual provision or justify the proposed forfeiture.

The commission observed that there was no evidence to establish that the developer had suffered any actual loss warranting the deduction. It further held that merely having a general non-refundable clause in the booking form was insufficient to justify retaining the buyer’s money in the circumstances of the case.

“The mere existence of a general non-refundable clause does not, in the facts of the present case, sufficiently justify retention of the complainant’s money,” the commission observed.

Matter Decided Ex Parte

The developer remained absent during the proceedings and the matter was decided ex parte.

Holding that the failure to refund the amount amounted to deficiency in service, the commission allowed the complaint and directed the developer to comply with the order within 45 days of receiving its copy.

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It further directed that in case of non-compliance, the developer would be liable to pay 9 per cent annual interest on ₹1,47,175 from June 1, 2022, the date of filing of the complaint, until actual payment.

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