Consumer tribunal orders Mumbai builder to pay Rs 6 crore and secure occupation certificate after two-decade delay

A bench of the National Consumer Disputes Redressal Commission, chaired by President A.P. Sahi and member Bharatkumar Pandya, delivered a verdict on August 17, 2026 directing Raja Construction Company to pay Rs 6 crore to the Tirupati Devi Cooperative Housing Society and to obtain the outstanding occupation certificate within twelve months. The society, consisting of 33 members occupying 25 flats in Balaji Apartments, Santa Cruz, had signed a 2005 redevelopment agreement requiring the builder to demolish the old structures, construct new ones, and secure all necessary approvals.

Although possession began in 2008, the developer did not provide the sanctioned building plans, occupation or completion certificates, nor a new water connection, leaving members under a demolition threat for more than two decades. The commission found no evidence that owners made illegal alterations and held the developer fully responsible, enhancing compensation to 1.5 times the agreed monthly rate, amounting to Rs 3.24 crore, plus additional hardship allowances, totaling Rs 6 crore, plus Rs 10 lakh for litigation costs. Non-payment will attract 8 percent simple interest, aiming to alleviate the society’s prolonged anxiety and financial loss.