Man paid Rs 42.63 lakh for a new house, but cracks, leaks and seepage appeared; Court orders builder to pay Rs 25 lakh

A residential construction dispute in Kerala has ended with the Kollam District Consumer Disputes Redressal Commission directing a Thiruvananthapuram-based builder to pay compensation after a house constructed for a customer was found to have several serious defects.

The commission ordered Luxury Builders, managed by Jayadevan M.V., to pay Rs 20 lakh towards repair costs and damages, along with Rs 5 lakh as compensation for mental agony and inconvenience. It also awarded Rs 25,000 towards litigation expenses.

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The order was passed on August 10, 2026.

Man paid Rs 42.63 lakh for house construction

According to the commission's order, Visakh K. entered into an agreement with Luxury Builders on January 13, 2022, for the construction of a residential house at Kalliyoor in Thiruvananthapuram.

The agreed construction cost was Rs 32 lakh, with the builder expected to complete and hand over the house within six months.

However, construction was completed only on January 20, 2024, and the housewarming ceremony was held later that month.

Visakh alleged that he eventually paid Rs 42,63,450 to the builder, substantially more than the amount originally agreed upon.

He also claimed that the builder had promised to use quality and branded materials for items including bathroom fittings, paint, electrical wires, switches, plumbing materials and tiles.

House developed several defects after possession

According to the complaint, problems became apparent soon after Visakh took possession of the house.

The alleged defects included leaking plumbing lines, faulty sanitary fittings, peeling paint, cracks in walls and ceilings, uneven flooring and damaged kitchen cupboards.

The complaint also cited inferior door frames, water seepage through windows, leakage from the staircase pergola and problems with the electrical work.

Visakh further alleged that he had to spend additional money to complete some kitchen work after the builder failed to finish it.

He said he repeatedly approached the builder, both orally and in writing, asking for the defects to be rectified. However, according to the complaint, the problems were not addressed.

The builder did not appear before the commission or submit its version despite receiving notice and was subsequently proceeded against ex parte.

Expert inspection finds substandard construction

To examine the allegations, the commission appointed an expert commissioner and an advocate commissioner to inspect the house.

The expert inspection reportedly found inferior and substandard materials, defective plumbing, dampness and seepage, cracks in walls, inadequate waterproofing and improper slopes in balcony tiling.

The report also found that the workmanship did not conform to standard civil engineering practices.

The expert concluded that the construction was defective and substandard and that defective materials and work needed to be rectified or replaced.

“Based on my inspection, I conclude that: The construction work carried out is defective and substandard, Materials used are inferior and not in accordance with normal construction standards, Immediate rectification and replacement of defective works and materials is necessary, The contractor is responsible for the observed defects and deficiencies,” the report stated.

Advocate commissioner also found defects

The advocate commissioner identified several other issues during the inspection.

These included a collapsed portion of the concrete pathway, damaged washbasin fixtures, damaged kitchen cabinets, leaking bathroom pipes and inferior sanitary fittings.

The inspection also found cracks and deterioration in the terrace concrete, peeling paint and damp walls with algae formation.

The commission said these findings supported the complainant's allegations regarding the quality of the construction.

Consumer commission holds builder responsible

The bench comprising President S.K. Sreela and member Stanly Harold said the builder was responsible for constructing the house in accordance with the agreement and accepted construction standards.

The commission found that the work failed to meet those standards and also noted that the builder had collected more than the amount specified in the agreement.

“The opposite party had entered into an agreement with the complainant and perform the construction work not in accordance with the normal construction standards,” the commission held.

It added that the builder had an obligation to construct the residential building properly but had failed to fulfil that responsibility.

Builder's failure amounts to deficiency in service

The commission relied on the expert report, which recommended immediate repairs and replacement of defective work and materials.

It concluded that the builder's failure to meet its contractual obligations amounted to deficiency in service and unfair trade practice under consumer protection law.

“As per Exhibit C1 immediate rectification and replacement of defective works and materials is necessary and the contractor is responsible for the observed defects and deficiencies. The nonfulfillment of the obligation on the side of the opposite party amounts to deficiency in service and unfair trade practice,” the commission said.

Builder ordered to pay Rs 25 lakh

The commission allowed Visakh's complaint and directed the builder to pay Rs 20 lakh towards repair costs and damages.

The amount will carry 9% annual interest from January 13, 2022, until realisation.

The commission also awarded:

• Rs 5 lakh for mental agony and inconvenience
• Rs 25,000 towards litigation costs

The builder was directed to comply with the order within 45 days of receiving a copy of the order.

If the builder fails to comply, the complainant can recover the amount with 9% annual interest and initiate execution proceedings in accordance with the law.