3-year Jail to Builders for not refunding money on time to unhappy customers: NCDRC


The National Consumers Disputes Redressal Commission (NCDRC) ordered  3-years jail to Builder for not refunding money on time to unhappy customers.

Facts of the case:

The Builder, M/s Parsvnath Developers Ltd. has not given possession of the subject flats to the complainants and they have also failed to complete the construction within the stipulated period. According to a decree handed in 2019, NCDRC had directed Parsvnath to refund the principal quantity together with 12% curiosity for the deficiencies in service and unfair commerce practices by way of criticism instances filed by 5 complainants, all retired military officers.

Interpretation of law:-

The complainants stated that they had booked flats with Parsvnath at Privilege Project, Noida, however by no means bought possession. Senior advocate APS Ahluwalia and advocate SS Ahluwalia, appearing for the complainants contended that earlier than the fee that the builder has been looking for repeated adjournments and giving undertakings to adjust to the order, however, didn’t honour his personal enterprise.

It was highlighted that one of many complainants is a senior citizen and retired military officer who has already crossed the age of 75 years and nonetheless ready for the refund of his cash paid in direction of the flat that by no means materialised, mentioning that no builder/developer can presume himself to be above regulation.


A bench presided by justice Deepa Sharma said that it is a decree against the judgement debtor, Parsvnath Developers Ltd. JD has failed to comply with the decree despite getting a number of opportunities. They have not honoured their own undertakings and it seems that the special leave petition (in Supreme Court) has been filed with the sole intention to delay the payment of the decretal amount. Moreover, there is no stay of the execution. Therefore, the NCDRC has sentenced the managing director and administrators of an organization to three years imprisonment, for failing to refund cash on time to sad prospects ready for residences since 2008.

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