Buyers book Rs 9.94 crore flat in Mumbai’s Dadar East Two ICC project in 2014, pay Rs 1.95 crore under 30:70 plan; cancel in 2016 after construction delay and payment-plan dispute; Bombay Realty, Bombay Dyeing ordered to refund Rs 4.09 crore with interest, Rs 1 lakh compensation for mental agony and harassment and Rs 50,000 litigation costs
A Mumbai court ordered Bombay Realty and Bombay Dyeing to refund a buyer Rs 4.09 crore with interest, plus compensation for mental agony and litigation costs, after the buyer cancelled a Rs 9.94 crore flat purchase in Dadar East. The cancellation followed construction delays and a dispute over the payment plan.
In 2014, a buyer entered into a contract to purchase a luxury flat in the Two ICC project located in Dadar East, Mumbai, at a price of Rs 9.94 crore. Under the agreed 30:70 payment scheme, the buyer paid Rs 1.95 crore upfront and planned to settle the remaining amount over time. However, by 2016 the project faced significant construction delays, and the buyer raised concerns about the developer’s adherence to the payment schedule. Disagreements over the terms of the plan led the buyer to cancel the agreement, seeking a full refund.
The dispute escalated to the Mumbai civil court, where the judge examined evidence of the delayed construction, the payment‑plan breach, and the financial impact on the buyer. The court concluded that Bombay Realty and its partner Bombay Dyeing had failed to meet contractual obligations and had caused undue hardship. As a result, the court ordered the developers to return Rs 4.09 crore to the buyer, along with applicable interest, a compensation of Rs 1 lakh for mental agony and harassment, and Rs 50,000 to cover litigation expenses. The judgment underscores the legal responsibilities of real‑estate developers to honor timelines and payment structures.
Legal observers say the case serves as a warning to developers across Maharashtra that courts will enforce consumer protection provisions when projects stall or payment terms are altered without consent. For prospective homebuyers, the ruling highlights the importance of scrutinising payment plans and seeking clear timelines before committing large sums. The decision may also influence ongoing negotiations in other delayed projects, prompting developers to adopt more transparent practices to avoid similar legal challenges.
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