Howrah consumer commission orders builder to pay ₹6.8 lakh to two brothers after selling booked flat to another buyer
Two brothers who lost a flat despite paying ₹5.75 lakh as an advance booking amount have won a consumer court battle against a property developer in West Bengal. The Howrah District Consumer Disputes Redressal Commission has directed the developer to refund the entire booking amount, pay ₹1 lakh as compensation and an additional ₹5,000 towards litigation expenses.
The total amount payable by the developer stands at ₹6.8 lakh, excluding any applicable interest. The commission found that the developer had violated the terms of the agreement by selling the same property to another buyer despite having already accepted money from the original purchasers.
Brothers paid ₹5.75 lakh for a 650-sq-ft flat
The dispute originated on November 10, 2020, when the two brothers entered into an agreement with the developer to purchase a 650-square-foot flat on the first floor of a multi-storey residential building in Howrah.
The agreed property price was ₹10.4 lakh. The brothers paid ₹5.75 lakh upfront as an advance, with the developer promising to hand over possession by the end of April 2021.
However, the buyers later discovered that the developer had sold the entire first floor of the building to another purchaser through a registered sale deed.
The brothers subsequently approached the developer several times, demanding either possession of the flat or a refund of their money. After their requests allegedly went unanswered, they sent legal notices seeking repayment of the booking amount.
Developer claims money was brokerage, not flat advance
During the proceedings before the consumer commission, the developer disputed the brothers' allegations and presented a different explanation for receiving the ₹5.75 lakh.
He claimed that the amount was not an advance payment for the flat but brokerage for introducing him to the owners of another property.
The developer also argued that ₹2 lakh had already been paid back or adjusted during disputes involving the brothers, leaving an outstanding amount of only ₹3.75 lakh.
In his written response, he further claimed that the brothers had failed to pay the remaining purchase consideration within the agreed period, forcing him to sell the flat to another buyer.
Consumer commission rejects developer's explanation
The commission examined the developer's claims and found that he had failed to produce documentary evidence to substantiate his defence.
It observed that there was no convincing proof that the brothers had defaulted on their payment obligations. The developer also failed to establish that ₹2 lakh had been refunded or adjusted against any outstanding dues.
The commission noted that the developer had admitted receiving ₹5.75 lakh but could not provide evidence supporting his claim that any portion of the amount had subsequently been repaid.
Dismissing his explanation as a concocted story, the commission concluded that the developer had failed to justify retaining the buyers' money.
It further held that selling the flat to another purchaser while the agreement with the original buyers remained in force amounted to deficiency in service and an unfair trade practice.
Developer ordered to pay ₹6.8 lakh
The Howrah District Consumer Disputes Redressal Commission directed the developer to refund the entire ₹5.75 lakh received from the brothers.
In addition, he must pay ₹1 lakh as compensation for the loss and hardship suffered by the purchasers and ₹5,000 towards litigation expenses.
The order reinforces the responsibility of property developers to honour booking agreements and provide buyers with the promised property rather than transferring it to another purchaser after accepting an advance payment.