Homebuyer already paid Rs 23.23 lakh for a flat, refused another Rs 8 lakh until promised construction was complete, her allotment was cancelled; builder ordered to pay 23.83 lakh

A builder cancelled a flat allotment in Greater Noida after the homebuyer asked for proof of progress before paying another Rs 8 lakh. Kangra consumer commission in Dharamshala has now held that cancellation void and directed builder to refund Rs 23,23,712 with interest.

Order was pronounced on 26 September 2026. Complaint had been filed on 17 June 2025 by a Sidhpur resident in Himachal Pradesh, who had paid for a unit in project The Suites, part of Godrej Golf Links township in Sector 27, Greater Noida.

What Was Case Against Builder About

Homebuyer approached builder AR Landcraft LLP in April 2017 to buy a flat in an ongoing project. Unit was allotted to her on 8 November 2017 for an agreed Rs 37,49,403.50. Payment was tied to construction, so more money would fall due only as work reached set stages such as internal plastering, flooring and offer of possession.

What Did Homebuyer Say In Complaint

She told commission she paid Rs 23,23,712 in four installments between May 2017 and September 2022, which she said was well over 60 percent of total cost. Even then, builder failed to finish construction in reasonable time. In April 2023, after a demand for another 20 percent, she visited site and found work far from complete.

She said she was ready to pay balance once real progress showed on site. Builder instead sent a letter dated 6 June 2023 and cancelled her allotment, leaving her with neither flat nor refund. She then moved commission seeking full refund, interest, compensation and litigation costs.

What Did Builder Say

Builder first objected to maintainability of complaint. On merits, it said total cost under agreement was Rs 40,98,123.50 excluding taxes and that time was of essence for every installment. It argued homebuyer defaulted on 20 percent installment due once internal plaster and flooring were done.

Builder also blamed force majeure for any slowdown in construction and said cancellation on 6 June 2023 was legally justified because of non payment. It asked commission to dismiss complaint.

What Did Commission Find In Demand Letters

Commission went through demand letters sent to homebuyer. One sought Rs 8,01,874.03 by 6 March 2023, but it did not say whether superstructure, internal plaster or flooring work was actually done. Builder also produced no certificate or other proof showing finishing work was complete by 13 December 2022.

Later demands, including one for Rs 8,01,874.04, made no mention of payment plan milestones either. Commission also noted payment plan on record listed total cost as Rs 34,92,574, a third figure beside those put forward by homebuyer and builder.

When Does Homebuyer Have To Pay Construction Linked Installments

Commission said duty to pay installments under construction linked plan arises only when a set stage is actually completed and can be verified on site. Till then, demand for payment has no legal footing. Burden of proof sits squarely with builder, commission said. Developer has to show through documents, technical reports or photographs that a particular stage of construction was reached.

Here, builder placed no completion certificate, engineer's progress report or any other proof showing plaster or finishing stages were done before demands went out in early 2023. Commission held those demands premature, arbitrary and unenforceable.

Can Builder Cancel Allotment Over Non Payment

Commission called cancellation letter of 6 June 2023 legally unsustainable and void from the start. "A party in breach cannot invoke termination clauses against a compliant consumer," commission said.

Builder leaned on a UP RERA order of 6 June 2020 and later extensions up to 30 September 2021 for progress reports. Commission called that reliance misplaced. Such extensions were time bound and covered regulatory filings like quarterly progress and annual audit reports, it said.

They did not give builder an open ended licence to stop work on site or escape contractual duty to deliver, commission added.

Commission said it was not homebuyer who failed to act as per agreed terms, but builder. Slow construction, premature money demands and an unlawful cancellation together amounted to gross deficiency in service and unfair trade practice, it held.

What Relief Did Commission Grant

Builder has been told to refund Rs 23,23,712 to homebuyer with interest at 9 percent a year from date of complaint till money is paid back. It must also pay Rs 50,000 as compensation and Rs 10,000 as litigation costs.

Complaint was filed on 17 June 2025 and final hearing took place on 3 September 2026. Commission pronounced order on 26 September 2026, and directed that a copy go free of cost to all parties as required under Consumer Protection Act. Pending applications, if any, were disposed of in terms of order.