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In a ruling delivered by the State Consumer Disputes Redressal Commission, Maharashtra, senior citizens Uttam Chatterjee and Anindita Chatterjee have been awarded ₹1 lakh by Lodha Developers for Stress, Harassment & Mental Torture suffered due to deficiency in service and unfair trade practices.

The complainants, retired senior citizens residing at Worli, Mumbai, approached Lodha Developers in 2015 for a residential flat. They initially booked a 3-BHK flat No. 4002 (2015 sq ft) in the West Wing-2 of World Crest in the World Towers project at Lower Parel for a total consideration of ₹12,22,22,160 (exclusive of maintenance, stamp duty and other charges). An initial payment of ₹18,00,000 was made under the 20:80 scheme.

Due to delay in possession and personal circumstances, the complainants sought to exit. Lodha Developers representatives persuaded them in early 2016 to shift the booking to a 4-BHK flat in the Marquise building of The Park project in Worli. Verbal assurances were given for possession by May/June 2018 at approximately ₹8-10 crore inclusive of all charges. Payments totalling ₹2,83,59,554 were transferred and made towards the new booking.

In October 2016, Lodha Developers informed the complainants that the price had escalated to ₹12 crore and demanded ₹2 crore immediately. The complainants requested an exit. Lodha Developers insisted on a 10% cancellation fee. After demonetisation in November 2016, market prices fell, but Lodha Developers refused to offer similar flats at reduced rates.

By 2017-2018, Lodha Developers issued allotment letters and demand notices for the second flat. When the complainants faced difficulty in making milestone payments, Lodha Developers issued a pre-termination notice on 20.06.2018 and terminated the allotment effective 10.08.2018, retaining the entire amount paid without refund or possession.

The complainants filed Consumer Complaint No. SC/27/CC/233/2021 on 27.12.2021. Advocate Dharmin V. Sampat appeared for the complainants while Advocate Nitin Waghmare represented the opposite parties — Shreeniwas Cotton Mills Ltd., Lodha Developers Ltd., Jawala Real Estate Pvt. Ltd. and Macrotech Developers Ltd.

On 13.03.2026, the bench comprising Poonam V. Maharshi (Presiding Member) and Dr. Nisha Amol Chavhan (Member) held that the complainants are consumers under Section 2(7) of the Consumer Protection Act, 2019 and the Commission has pecuniary jurisdiction. The Commission found Lodha Developers guilty of deficiency in service under Section 2(11) for failure to deliver possession and unilateral termination, and unfair trade practice under Section 2(47) for misleading representations on timeline, price escalation and wrongful retention of funds.

The Commission directed Lodha Developers (jointly and severally) to refund ₹2,83,59,554 with 10% interest from 10.08.2018 within two months. In addition, Lodha Developers must pay ₹1,00,000 as compensation for the stress, inconvenience, harassment, mental torture & agony suffered by the senior citizens and ₹50,000 towards legal and incidental expenses.

This order against Lodha Developers once again highlights why homebuyers should think twice before investing in real estate.

Lodha Developers Spokesperson said, “We are reviewing the order and will be challenging it. The facts in this case have been twisted to suit the needs of investors. We are confident of favourable order on merits once challenged.”

Also Read: Macrotech Developers Alleges Forgery and Fraud by House of Abhinandan Lodha

Note: Pic Used For Representational Purposes Only

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