Lodha Group Paying Rs.2.25cr Refund to the Homebuyers due to Delay in Delivery

There is a high voltage tussle between realty Giant Lodha Group and Supreme Court (SC) in which SC has ordered Lodha Crown Buildmart, the arm of Macrotech Developers (Lodha) to refund Rs. 2.25 crore to a homebuyer in 12 months, along with simple interest of 12 percent per annum. The refund was ordered regarding the delay in handing over possession of a 1,966-sqft apartment bought in November 2013.

One of the buyers, has booked the 4-BHK apartment for Rs. 7.55 crore in the Lodha Evoq project in New Cuffe Parade at Wadala, Mumbai. And according to the terms and conditions of the deal the homebuyer has paid Rs. 2.25 crore and the balance Rs. 5.83 crore was to be paid on initiation of fit-outs.

An agreement was signed between the Lodha Group of developers and homebuyer, which mentioned that, the apartment would be delivered to the homebuyer for fit-outs by June 30, 2016, or with a grace period, by June 30, 2017. But it is disappointing that, the developer did not deliver possession of the apartment for fit-outs by the said date and that they had terminated the agreement.

After facing the despair the homebuyers have approached the National Consumer Disputes Redressal Commission (NCDRC) and appealed for refund of the amount paid with compound interest thereon at 18 percent per year along with compensation for the harassment, mental agony and torture suffered by them, apart from litigation costs.

The National Consumer Disputes Redressal Commission disposed of the homebuyers’ consumer complaint and ordered the Lodha to deliver the actual physical possession of the unit in question within three months, and ordered them to pay compensation in the form of simple interest at 6 percent per annum on the total amount paid from the committed date of possession, June 30, 2016 till the date of offer of possession, November 29, 2017.

Meanwhile, SC set aside the NCDRC order of November 9, 2022 and allowed the complaint by directing the developer to refund the deposited amount of Rs. 2.25 crore in 12 months with simple interest thereon at 12 per cent per annum. The commencement of the installment will take place from April 5, 2024, and the succeeding installments need to be paid on the 5th of each calendar month thereafter.