#real estate refund

Allahabad HC rules that buyers are entitled to a full refund of deposits with 6% interest from the date of payment if builders fail to deliver possession, even due to pending arbitration. The judgment reinforces consumer rights under equitable relief, ensuring financial protection for homebuyers in stalled real estate projects.

The NCDRC ruled that taking advance payments for a non-existent real estate project, while repeatedly acknowledging liability through emails, amounts to deficiency in service under the Consumer Protection Act. A refund of ₹48 lakh with 9% interest is mandated, rejecting the builder’s attempt to disguise payments as voluntary donations. This sets a critical precedent for senior citizens and investors duped by phantom projects.