Chandigarh consumer commission orders Dreamcity Realtors to refund Rs 1.97 crore
The Chandigarh State Consumer Commission held that Dreamcity Realtors stopped assured returns and failed to show construction progress, and ordered a full refund with 12% interest.
Key points
- The Chandigarh State Consumer Disputes Redressal Commission ordered Dreamcity Realtors to refund buyers of a shop in its Sushma Pristine project.
- The refund is Rs 1,96,75,547 with 12% yearly interest from the dates of deposit, to be paid within 30 days of the order reaching the builder.
- The commission allowed a refund even though the agreed possession date of 6 February 2029 had not passed, citing the builder's failures.
The State Consumer Disputes Redressal Commission, U.T. Chandigarh, on 11 November 2026 ordered Dreamcity Realtors Private Limited to refund Rs 1,96,75,547 (about Rs 1.97 crore) to a family that bought a shop in its Sushma Pristine project in Zirakpur, Mohali. The refund carries 12% yearly interest from the dates of deposit.
What Happened
Six members of one family paid the full price for a ground-floor commercial unit between 17 December 2023 and 12 January 2024, to run a clothing shop themselves. The agreement to sell set 6 February 2029 as the possession date. A separate memorandum of understanding promised assured returns, and the builder paid Rs 2,22,645 until June 2024 before stopping, according to the order.
The commission found that the builder had produced no progress report or certificate to answer the buyers' photographs showing work had stopped at the site, and that it had offered to adjust half the unpaid returns against space in another project, which the buyers refused. The commission held that a promoter cannot shift a buyer's money to another project without consent. It said the possession date had not passed, but the builder's overall conduct entitled the buyers to a refund.
The builder must pay within 30 days of receiving a certified copy of the order, without deducting TDS, or pay 15% interest after that. The Rs 2,22,645 already paid as returns will be adjusted. The commission also awarded Rs 75,000 as compensation and Rs 35,000 as litigation costs. The order is the commission's finding and may be appealed.
What It Means
The order shows that buyers need not always wait for the possession date to pass: a consumer commission may order a refund when a builder stops promised payments and cannot show the project is moving. It also held that buying a shop to earn a living through self-employment still counts as a consumer purchase. Buyers with a similar grievance can seek help from the National Consumer Helpline (1915) or file a complaint online through e-Daakhil.
Source: Consumer commission order
Sources & Citations
- Consumer commission order — Consumer commission