Posted by: Adv. Sulaiman Bhimani
Date: July 1, 2025
Category: Consumer Rights | Real Estate Fraud | Public Interest
In a powerful affirmation of consumer rights, the District Consumer Disputes Redressal Commission, Mumbai Suburban (Additional), has held M/s Bhavani Builders and Developers, along with its representatives Mr. Milind Surve and Mr. Prakash Shetty, guilty of deficient service and unfair trade practices in a case involving the fraudulent resale of a fully paid flat.
The Background
Mr. Lalbahadur Girijashankar Yadav, a resident of Chembur Colony, Mumbai, filed a consumer complaint (CC No. 102/2023) after he discovered that the flat he had booked and paid for in 2013 in the ‘Sai Parag’ project at Bhayander (East), was illegally sold to another person in 2022, despite a registered Agreement for Sale in his name.
Mr. Yadav had paid ₹12,50,000, of which ₹11,90,000 was paid in 2013, and the balance ₹60,000 in 2019. The Agreement for Sale was duly registered on 13th August 2013, clearly identifying Flat No. 603, 6th Floor, A-Wing of the said project, in Mr. Yadav’s name. Yet, the possession was never handed over, and the same flat was sold off to Mr. Santosh Chaurasia via another registered agreement dated 5th January 2022.
Legal Battle and Evidence
Represented by Adv. Sharon Fernandez, Mr. Yadav presented:
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- Proof of payments (receipts and bank statements),
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- A copy of the registered Agreement for Sale,
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- A police complaint and FIR lodged on 2nd February 2022, and
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- A legal notice sent to the builders.
Despite being served through both direct postal notices and public notice publication, the opposite parties chose not to appear and were proceeded ex-parte by the Commission.
The Commission’s detailed examination of the documents confirmed that Mr. Yadav had indeed paid ₹12,35,000 (receipts were available for this amount) and incurred additional expenses of ₹14,480 for registration. The flat was registered in his name, yet fraudulently transferred to another buyer for ₹15,00,000 by the developers.
Key Observations by the Commission
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- The Agreement for Sale and receipts bear consistent signatures, confirming the legitimacy of the transaction.
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- Search reports validated the resale of the same flat to a third party.
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- Opposite Parties No. 2 and 3 were actively involved in the business and thus held equally liable.
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- The conduct of the developers amounted to cheating, fraud, and deliberate suppression of facts.
The Final Verdict
In its judgment dated 30th June 2025, the Hon’ble Commission ordered the following:
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- Refund of ₹12,35,000 to Mr. Yadav with 6% interest p.a. from 2014 (for ₹11,90,000) and from 2020 (for ₹45,000), failing which interest will escalate to 9% p.a. till realization.
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- ₹2,50,000 as compensation for mental harassment and frustration caused to the Complainant.
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- ₹20,000 towards legal expenses.
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- The entire liability is to be borne jointly and severally by all three Opposite Parties.
Why This Judgment Matters
This landmark decision is yet another wake-up call to rogue builders who think they can dupe unsuspecting homebuyers without consequence. It also underscores the importance of:
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- Timely legal action by consumers,
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- The power of documentation and legal representation, and
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- The efficacy of Consumer Forums in providing accessible justice to common citizens.
Mr. Yadav’s case stands as a shining example of how persistence and the rule of law can prevail, even against fraudulent developers operating with impunity.
📌 Legal Takeaway: Always register your agreement for sale, keep a complete trail of payments, and consult a legal expert when your rights are violated. Consumer Courts are a strong recourse against unscrupulous practices in real estate.
Published in public interest by:
Adv. Sulaiman Bhimani
Citizens Justice Forum
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Click here to Read and Download the Order