Medak Consumer Commission Orders Realtor to Refund ₹5 Lakh with 9% Interest

MEDAK: The District Consumer Disputes Redressal Commission at Sangareddy has directed a real estate businessman to refund ₹5 lakh with 9% annual interest to a homebuyer couple for failing to deliver a semi-finished duplex house and for engaging in what the panel termed “deficiency in service and unfair trade practice.”

Commission orders refund with 9% interest

The case was filed by Pyaram Shiva Kumar and K. Anusha, both private employees, against M. Ravi Kumar, a real estate dealer from Serilingampally, Ranga Reddy district. The couple stated that they paid an advance of ₹5 lakh in January 2023 for a duplex house at Nandan Ratan Pride, Bandlaguda village, RC Puram mandal, Sangareddy district, after signing an agreement of sale on January 2, 2023.

According to the complainants, the opposite party assured that the property was free from litigation and promised to arrange a bank loan and complete pending clearances. However, he neither secured permissions nor settled ownership disputes with the landowner and failed to return the advance despite repeated demands and a legal notice sent in December 2024.

Opposite party proceeded ex parte

The commission noted that Ravi Kumar did not appear despite notices and forfeited his right to file a written version after the statutory 45 days. On examining evidence and documents (Exhibits A1 to A8), the bench—comprising President Suvarna Jayasri, and Members Gajjala Venkateswarlu and Makyam Vijay Kumar—held that the complainants had proved both financial loss and mental distress.

Compensation and costs awarded

The commission, in its order dated August 29, 2025, directed the respondent to:

• Refund ₹5,00,000 with 9% annual interest from January 11, 2023 until realization;

• Pay ₹25,000 as compensation for mental agony; and

• Pay ₹10,000 as litigation costs.

The order must be complied with within 40 days of receipt.