The District Consumer Disputes Redressal Commission (DCDRC), Gautam Buddh Nagar, has directed the Yamuna Expressway Industrial Development Authority (YEIDA) to refund the registration amount deposited by a homebuyer after a housing project remained stalled for over 12 years. The commission also ordered the authority to pay interest and litigation costs.
The case relates to the Yamunotri Housing Scheme launched by YEIDA in 2014, under which the complainant, Omveer Singh, had applied for a residential flat.
Project Failed to Take Off
According to the complaint, Omveer Singh applied for an 880 sq. ft. two-bedroom apartment in Greater Noida’s Sector 22A on November 28, 2014, by depositing a registration amount of ₹2.8 lakh. The flat was allotted through a draw of lots.
However, the housing project did not progress as planned, construction failed to commence within the stipulated period, and possession of the flat was never offered. Subsequently, YEIDA provided buyers with the option of shifting to another project or seeking a refund of the deposited amount with applicable interest.
Singh opted for a refund and submitted his request in October 2017. Despite repeated follow-ups and a legal notice issued later that year, the amount was not refunded, prompting him to approach the consumer commission in February 2018.
YEIDA’s Defence
During the proceedings, YEIDA argued that the allottee had failed to deposit the remaining allotment amount of ₹5.58 lakh within the prescribed deadline and had only paid the initial registration fee. The authority contended that this constituted a violation of the scheme conditions and made the buyer liable for cancellation of the allotment and forfeiture of the deposited amount.
YEIDA also referred to provisions in the scheme brochure restricting multiple applications by members of the same family.
Commission’s Observations
The consumer commission rejected YEIDA’s arguments, observing that the scheme brochure was only an informational document and did not constitute a binding agreement between the authority and the allottee. It further noted that YEIDA had not initiated any formal proceedings to cancel the allotment on the grounds of alleged non-compliance.
The commission also observed that although the buyer’s wife had separately applied under the scheme and received an allotment, the authority had not cancelled either allotment on that basis.
Importantly, the commission referred to YEIDA’s own communication issued in October 2017, in which the authority had offered buyers the option to seek a refund or adjust the registration amount against another project. This indicated that YEIDA itself had acknowledged its obligation to return the deposited funds.
Refund Ordered
The DCDRC directed YEIDA to refund the entire registration amount of ₹2.8 lakh along with 6% annual interest, calculated from the date the consumer complaint was filed. The authority has been given 30 days to comply with the order.
In addition, the commission awarded ₹5,000 towards litigation expenses.
The ruling reinforces the accountability of development authorities in cases where housing projects fail to materialise and highlights that homebuyers cannot be indefinitely deprived of their deposited funds when promised projects are not delivered.
