Delhi Consumer Commission Orders Refund, Loan Clearance & Compensation After Holding Parkwood Developers Liable for Delay in Possession
Sangeetha Prathap
The Delhi State Consumer Disputes Redressal Commission, presided over by Justice Sangita Dhingra Sehgal (President) along with Ms. Pinki (Judicial Member) and Mr. J.P. Agrawal (General Member), has held Parkwood Developers Pvt. Ltd. guilty of deficiency in service for failing to deliver possession of a residential unit within the contractually stipulated period, and for causing financial hardship by discontinuing EMI payments promised to the homebuyer. The Commission directed the developer to refund the amount paid by the complainant with interest, clear the outstanding home loan, and compensate the complainant for mental agony and litigation costs.
The complaint was filed by Mr. Brijesh Singh, who had booked a flat in the Parkwood Glade project at Mohali through an allotment letter dated 22 July 2015. A Flat Buyer Agreement executed the same day fixed the total sale consideration at ₹65,16,625 and required the developer to hand over possession by 30 June 2017. The complainant paid ₹18,50,000 as per the agreed schedule, while the remaining amount was financed through a home loan from LIC Housing Finance Ltd. The developer assured the complainant that it would bear all EMIs until possession was delivered, an undertaking that was formalised through a written MoU. LIC Housing Finance disbursed ₹47,72,781 directly to the developer.
However, the developer paid EMIs only for a short period, stopped making payments altogether, and also failed to complete construction or hand over possession. LIC Housing Finance thereafter began demanding EMIs from the complainant, placing him under severe financial distress. Repeated follow-ups did not lead to any progress, compelling the complainant to approach the Commission alleging deficiency in service and unfair trade practice.
Despite service of notice, the Opposite Party failed to enter appearance or file its written statement. Consequently, the Commission closed its right to do so and proceeded on the basis that the complainant’s averments remained unrebutted. The Commission noted that the evidence on record clearly established that the developer had undertaken to deliver possession by June 2017 but failed to meet the deadline. The Commission also referred to the developer’s contractual and MoU-based obligation to pay EMIs, which it had abandoned midway, exacerbating the complainant’s financial difficulties.
Relying on the Supreme Court’s decision in Fortune Infrastructure v. Trevor D’Lima and the principles laid down in Arifur Rahman Khan v. DLF Southern Homes Pvt. Ltd., the Commission reiterated that a homebuyer cannot be made to wait indefinitely for possession, and that failure to honour the agreed timeline constitutes clear deficiency in service.
The Commission found that the developer had not only failed to deliver possession but also withheld the complainant’s hard-earned money without any justification. It held that the developer’s conduct amounted to both contractual breach and unfair trade practice, entitling the complainant to refund, compensation, and reimbursement of loan liabilities.
Allowing the complaint, the Commission directed Parkwood Developers Pvt. Ltd. to refund ₹18,50,000 with 6% interest (enhanced to 9% if not paid by 16 December 2025), to clear the entire outstanding home loan of the complainant with LIC Housing Finance Ltd., and to pay ₹1,00,000 for mental agony and ₹50,000 as litigation costs. All pending applications were disposed of accordingly.
Appearance
For the Complainant: Mr. Nitin Goel, Advocate
Cause Title: Mr. Brijesh Singh Vs. M/S Parkwood Developers Ltd.
Case No: CC. NO. 211/2022
Coram: Justice Sangita Dhingra Sehgal (President) along with Ms. Pinki (Judicial Member),Mr. J.P. Agrawal (General Member)
