Why a Mumbai realtor told to pay Rs 1 lakh to 31 homebuyers

New Delhi: The Supreme Court has ordered a real estate company to pay Rs 1 lakh each to 31 homebuyers for failing to respond within the 45-day period fixed by the National Consumer Disputes Redressal Commission (NCDRC). The company had faced foreclosure of its right to file a response due to the delay.

The homebuyers had filed a complaint with the NCDRC, citing delays in the delivery of flats in the 'US Open' luxury residential project in Mulund, Mumbai, developed by Ricardo Construction. The commission issued a notice to the company on February 6, giving it thirty days to respond.

Despite the lawyer’s presence and the permission to file a vakalatnama, the company missed the deadline for submitting its written statement. Consequently, the NCDRC foreclosed the company's right to respond.


The builder then approached the Supreme Court seeking more time. The Supreme Court allowed the company to file its written statement but imposed a fine.

"The appellant is permitted to file written statement subject to payment of costs of Rs 1 lakh each to 31 complainants. The payment of costs shall be a condition precedent for acceptance of written statement on record. The costs, as above, shall be transferred in the respective bank accounts of the respondents," the court stated.