NCDRC dismisses homebuyer's complaint against Lodha Developers over flat cancellation

The National Consumer Disputes Redressal Commission (NCDRC) on 12 October 2026 dismissed a homebuyer's complaint against Lodha Developers Pvt. Ltd. and Jawala Real Estate Pvt. Ltd. over the cancellation of a flat in a Worli, Mumbai project. The commission held that the builder's cancellation and its forfeiture of 10% of the price were within the terms of the agreement, because the buyer had defaulted on payments.

What Happened

According to the order, the homebuyer booked a 4 BHK flat on the 66th floor of the project in 2013 for a total consideration of Rs 7,25,79,041 and paid Rs 3,87,77,463, including taxes and statutory dues. The builder cancelled the allotment on 19 February 2016 and refunded the balance through 12 post-dated cheques after deducting 10% of the basic sale price. The commission noted that the buyer encashed the cheques within a few days.

The homebuyer argued that the builder's payment demands did not match actual construction progress, that the price had been raised arbitrarily and that possession was promised by January 2016. The homebuyer sought a refund of the forfeited amount with interest, plus compensation and litigation costs.

The commission examined a certificate dated 18 June 2015 from a BMC building supervisor showing that RCC work for level 9 had started. It held that the builder's demand of 19 June 2015 matched the agreed construction schedule, and that later demands were also as per schedule. The NCDRC said it was the buyer who defaulted on timely payments. It found no evidence that the price was originally fixed lower or that possession was due in January 2016, and held that no deficiency in service or unfair trade practice was proved. No costs were awarded.

What It Means

For homebuyers on construction-linked payment plans, the order shows that a builder's demand backed by records of construction progress can be enforced. In this case, the forfeiture clause in the signed agreement was upheld after the buyer stopped paying such demands. The commission also held that claims about an agreed price or possession date need documentary proof.

The NCDRC's finding may be appealed. Buyers with a dispute against a builder can approach the National Consumer Helpline (1915) or file a complaint through e-Daakhil.

Source: Consumer commission order