Chandigarh commission orders Sushma Buildtech to refund Rs 62.78 lakh with 12% interest
The Chandigarh State Consumer Commission held Sushma Buildtech deficient in service for failing to deliver a Zirakpur flat and ordered a full refund of Rs 62.78 lakh with 12% interest.
Key points
- The State Consumer Disputes Redressal Commission, U.T. Chandigarh, ordered Sushma Buildtech to refund a homebuyer couple on 29 October 2026.
- The builder must refund Rs 62,77,598 with 12% annual interest from each date of deposit within 30 days, or pay 15% after that.
- The commission held that a paper offer of possession without statutory approvals does not discharge a builder's duty; the order may be appealed.
Photo: MaxnaCarta / Wikimedia Commons, CC BY-SA 4.0 (cropped). Representational image.
The State Consumer Disputes Redressal Commission, U.T. Chandigarh, on 29 October 2026 ordered Sushma Buildtech Limited to refund Rs 62.78 lakh (Rs 62,77,598) to a homebuyer couple, with interest at 12% a year from each date of deposit. The commission held the builder deficient in service and found an unfair trade practice over a flat in its Sushma Crescent project at Zirakpur.
What Happened
According to the order, the couple agreed in October 2022 to buy a 1,590 sq ft flat priced at Rs 66,55,698, with possession due by 31 October 2023. They paid Rs 62,77,598, including Rs 40,11,500 through a Bank of Baroda home loan. The order records that the possession date was pushed back through later agreements to 1 November 2024, 31 July 2025 and finally 31 December 2025, and that the builder paid delay compensation of Rs 30,000 a month only from November 2023 to November 2024.
On 27 September 2025 the builder offered possession on paper. The commission held that such an offer cannot discharge a builder's duty unless the unit is complete, fit to live in and backed by the required statutory approvals, which, on the record before it, had not been shown. The builder's defence had been struck off in April 2026 for not filing a reply in time.
The commission directed the builder and two of its directors, jointly and severally, to pay the refund within 30 days of receiving the order, failing which interest rises to 15% a year. The Rs 30,000 monthly payments already received will be adjusted. It also ordered Rs 75,000 as compensation and Rs 35,000 as litigation costs. It found no deficiency on the part of Bank of Baroda, dismissed the complaint against it, and gave the bank the first charge on the money to the extent the loan is due.
What It Means
The order says a buyer need not accept repeated extensions or a paper possession letter for a unit without the approvals needed to occupy it, and may instead withdraw and seek a full refund with interest. It also shows that a lender that only disbursed a home loan was not held liable for the builder's delay. The order may be appealed. Homebuyers facing similar delays can file a complaint through e-Daakhil or seek help from the National Consumer Helpline on 1915.
Source: Consumer commission order
Sources & Citations
- Consumer commission order — Consumer commission