Mumbai man pays Rs 1.47 lakh to book flat in Poddar Riviera Phase-I, seeks cancellation after bank rejects home loan; builder fails to refund despite legal notice, consumer commission orders full repayment with 9% interest

The buyer, a middle‑aged professional from the city, entered into a reservation agreement with the developer in early 2024, paying the required amount to secure a two‑bedroom unit in the upscale Poddar Riviera project. When he approached his bank for a home loan later that year, the lender declined the request on the grounds of insufficient credit history. The buyer then asked the builder to cancel the reservation and return his money, but the developer refused, citing a clause that allegedly locked the payment.

Facing a dead end, the consumer filed a complaint with the Maharashtra State Consumer Disputes Redressal Commission, attaching the reservation receipt, bank rejection letter, and a legal notice sent to the builder. After reviewing the documents, the commission ruled that the developer had breached the terms of the agreement by refusing a legitimate refund. It ordered the builder to return the full Rs 1.47 lakh along with 9 percent interest, calculated from the date of payment, as compensation for the buyer’s loss of use of the funds.

The decision is significant for Indian readers because it reinforces the rights of homebuyers in a market where delayed projects and financial disputes are common. It also serves as a reminder that developers must honor reservation agreements and that consumer courts can provide swift redress when banks or builders fail to act fairly. Prospective buyers are encouraged to verify loan eligibility before making large payments and to keep thorough records of all communications with developers.