Builder Told to Refund ₹44 Lakh or Hand Over Flat: What Every Mohali Homebuyer Should Know **बिल्डर को 44 लाख रुपये रिफंड करने या फ्लैट हैंडओवर करने का आदेश: हर मोहाली होमबॉयर को क्या पता होना चाहिए** ## **ਬਿਲਡਰ ਨੂੰ ₹44 ਲੱਖ ਵਾਪਸ ਕਰਨ ਜਾਂ ਫਲੈਟ ਸੌਂਪਣ ਦਾ ਹੁਕਮ: ਮੋਹਾਲੀ ਦੇ ਹਰ ਘਰ ਖਰੀਦਾਰ ਨੂੰ ਕੀ ਪਤਾ ਹੋਣਾ ਚਾਹੀਦਾ ਹੈ**

Refund ordered: ₹44.62 lakh

The District Consumer Disputes Redressal Commission, Mohali, has directed WWICS Estates to either hand over a Shimla resident's 3 BHK flat with all required approvals and execute the sale deed — paying delay compensation at Rs 5 per square foot per month of the flat's super area from August 22, 2015 until possession is given — or refund Rs 44.62 lakh with 15 percent annual interest from the date of deposit until payment. The commission additionally awarded Rs 50,000 as compensation for mental harassment and litigation expenses.

The builder has 60 days to comply.

The commission was headed by President Kuljit Pal Singh, with members Ranvir Kaur and Ramesh Kumar Gupta.

The Case: What Actually Happened

A buyer booked a 3 BHK flat in a WWICS Estates project in Mohali in August 2012. The buyer agreement, signed on August 23, 2012, committed the builder to deliver possession within 36 months — making August 22, 2015 the possession deadline. Approximately Rs 44.68 lakh was paid toward the flat by May 2017, covering nearly the entire sale consideration. (These details are sourced from HT July 20, 2026 via aggregator; the HT article itself could not be independently accessed.)

The builder did not deliver on the committed date. When it eventually attempted to hand over the flat — first in October 2017 and again in May 2018 — both attempts were based only on a partial completion certificate, not the full Occupation Certificate required for legal possession. The builder then demanded an additional Rs 9.36 lakh, despite not having obtained the necessary OC.

The commission found the builder's conduct amounted to deficiency in service. The delay from the committed possession date of August 22, 2015 to the commission's order in July 2026 represents over a decade of delay — the "fourteen-year" figure in earlier drafts referred to the time from booking, not from the missed possession date. The actual delay past the builder's own committed deadline is what the commission held actionable.

Why the Buyer Won

Three specific deficiencies drove the finding:

1. Possession offered without a valid OC. A partial completion certificate is not a lawful basis for handing over possession. An Occupation Certificate confirms the building has been inspected and found safe and compliant. Without it, the buyer cannot obtain individual utility connections, the flat cannot be legally registered, and the structure's compliance with building plans is not confirmed.

2. Additional demand beyond the agreement. The builder demanded Rs 9.36 lakh beyond the original sale consideration despite having failed to fulfil its core obligation. Under the Consumer Protection Act, demanding money in excess of the agreed price without contractual basis is an unfair trade practice and a separate ground of deficiency.

3. The agreement's possession date was clear. August 22, 2015 was the committed date. The commission had a clean, documented breach to work from.

The Full Order: Three Parts

Option A — Possession: WWICS Estates hands over full physical possession with completion and occupation certificates, executes the registered sale deed, and pays Rs 5 per sqft per month of the flat's super area as delay compensation from August 22, 2015 until the date of actual possession, adjusted for any amount already paid on this account. If the buyer elects to take possession, the remaining sale consideration is payable without any interest or penalty.

Option B — Refund: If possession is not given, WWICS Estates refunds Rs 44.62 lakh with 15 percent annual interest from the date of deposit until payment.

In both cases: Rs 50,000 for mental harassment and litigation expenses. 60-day compliance deadline.

The Rs 44.68 lakh paid and the Rs 44.62 lakh refund ordered are two different figures. The commission ordered refund of Rs 44.62 lakh — slightly less than the total paid, likely reflecting a specific calculation in the order.

When Buyers Can Seek a Refund

A consumer commission complaint for refund is available when:

- The builder failed to deliver possession by the committed date in the agreement
- Possession was offered but without a valid Occupation Certificate
- The builder demanded additional payment beyond the agreement without legal basis
- The project has been abandoned or construction has effectively stopped

This applies to pre-RERA bookings from before 2017, which fall outside RERA's direct jurisdiction but are fully within the Consumer Protection Act's scope. A 2012 booking, as in this case, is no less enforceable in 2026 than a 2020 booking.

When Commissions Order Possession Instead of Refund

The two-option structure gives the builder the choice — not the buyer. If a buyer specifically wants the flat rather than money, their complaint should make that clear. Commissions typically order the two-option structure when the project is advanced enough that delivery remains possible. When the project is abandoned, the developer is insolvent, or the land is no longer available, a refund direction is more likely.

What Evidence Buyers Must Keep

The WWICS case succeeded on a clean documentary record:

- The original agreement with the signed possession date
- Payment receipts and bank records covering every instalment
- The builder's own communications offering possession under a partial CC — that specific document was central to the deficiency finding
- Evidence of the additional demand for Rs 9.36 lakh beyond the agreement

The commission found against the builder partly because the builder's own records showed it offered possession under a partial certificate. Buyers who keep all builder communications — including offers of possession, demand letters, and emails — give themselves a much stronger case than those who rely only on their own records.

How This Differs from a Punjab RERA Complaint

Punjab RERA (rera.punjab.gov.in) applies to registered projects under the RERA Act, 2016. Delay interest is at SBI's highest MCLR plus 2 percent from the committed possession date. RERA is purpose-built for delivery failures and is typically faster for RERA-registered projects. It cannot award standalone mental harassment compensation in the same way a consumer commission can.

Consumer commission applies to all residential purchases including pre-RERA bookings. It can award delay compensation at a per-sqft-per-month rate as in this order, mental harassment compensation, and litigation expenses alongside the principal relief. The 15 percent interest rate in refund cases is higher than RERA's MCLR plus 2 percent formula at current rates.

For a RERA-registered project with a delay: RERA is typically the more direct route. For a pre-RERA booking or where the builder's conduct has caused documented harassment: the consumer commission is appropriate. The two routes are not always mutually exclusive, but filing simultaneously on the same cause of action can create jurisdictional complications. Consult a registered property advocate before filing.

---

Sources
- Hindustan Times — Refund 44L or hand over flat to buyer, panel directs builder, July 20, 2026 (via Webnewswire aggregator; HT site not independently accessible)
- Mohali Aerotropolis — RKM Housing consumer commission June 2026, Sushma Buildtech RERA orders, consumer forum coverage July 2026
- Consumer Protection Act, 2019 — District Consumer Disputes Redressal Commission jurisdiction
- RERA Act, 2016 — Section 18 delay interest provisions