Mohali: Consumer panel orders real estate firm to refund ₹46.65 lakh to couple in project delay case

According to the order dated April 10, 2026, the complainant Satish Kumar Chugh and his wife Neelima Chugh, had invested in a commercial space in a project located at Aerocity, Mohali

The district consumer disputes redressal commission, SAS Nagar, has directed a real estate developer, WTC Noida Development Company Private Limited to refund over ₹46.65 lakh along with interest to a Zirakpur-based couple for failing to deliver a commercial unit within the stipulated time.

The developer has been directed to pay ₹3 lakh as a lump sum compensation towards mental agony, harassment, and litigation expenses. (HT File)

According to the order dated April 10, 2026, the complainant Satish Kumar Chugh and his wife Neelima Chugh, had invested in a commercial space in a project located at Aerocity, Mohali. The couple had initially booked a unit in July 2017, measuring 1,035 sq ft, with the intention of starting a coaching institute for their livelihood.

The complainants paid a total of ₹46,65,781 to the developer by 2020. As per the buyer agreement signed in November 2017, possession of the unit was to be offered within 48 months, by November 2021. However, construction failed to progress as promised, prompting the buyers to seek a refund.

Instead of refunding the amount, the developer changed the allotted unit in 2021 to a smaller space measuring 800 sq ft. Despite assurances, the project remained incomplete, with no clear timeline for completion. The commission noted that disputes between the developer and local authorities had further stalled progress, making early delivery unlikely.

The opposite parties, including the developer company and its directors, failed to appear before the commission despite being served notice and were proceeded against ex parte.

After examining the evidence and submissions, the commission held the developer guilty of “deficiency in service” and “unfair trade practice”. It observed that the builder had neither delivered possession within the agreed time frame nor refunded the deposited amount.

The commission ordered the developer to refund ₹46.65 lakh with 9% annual interest from the respective dates of deposit within 30 days. In case of default, the interest rate would increase to 12% per annum until full payment is made.

Additionally, the developer has been directed to pay ₹3 lakh as a lump sum compensation towards mental agony, harassment, and litigation expenses. All opposite parties have been held jointly and severally liable to comply with the order.