In a significant ruling protecting the rights of homebuyers, the District Consumer Disputes Redressal Commission in Ghaziabad has directed the developers of the Shipra Krishna Srishti housing project in Indirapuram to hand over the original registered sale deed of a flat to the lending institution and compensate the buyer for the inconvenience caused by their failure to comply with contractual obligations.
The order was passed in response to a complaint filed by Rajesh Bhalla, a resident of Indirapuram, who alleged that the builders failed to provide the original registered sale deed of his apartment as required under a tripartite agreement executed between the homebuyers, the lender, and the developers.
According to the commission’s order, the builders—Shipra Estate Limited and Jaikrishna Estate Developers Private Limited—must submit the original sale deed to HDFC within 15 days and provide a photocopy to the complainant. In the event that the original document cannot be located, the developers have been directed to publish a public notice in two national newspapers at their own expense declaring that the original deed was lost while in their custody.
The commission also ordered the developers to pay ₹50,000 to the complainant towards compensation for mental agony and litigation expenses. The amount must be paid within 45 days, failing which it will attract an annual simple interest of six percent until settlement.
The matter relates to Flat No. JAC-403 in the Shipra Krishna Srishti residential project located in Indirapuram, Ghaziabad. Rajesh Bhalla, along with co-allottees Baldev Krishna Bhalla and Venika Bhalla, had purchased the flat and availed a home loan from HDFC. A tripartite agreement involving the buyers, lender, and builders was signed on December 5, 2022, while the sale deed was registered on January 30, 2023.
Under the terms of the agreement, the builders were required to submit the original registered sale deed directly to the lender as security against the home loan. However, according to the complaint, despite repeated follow-ups through emails, phone calls, and reminders, the document was never handed over. After unsuccessful attempts to resolve the matter, the complainant issued a legal notice in April 2024.
During the proceedings, HDFC informed the commission that it had repeatedly sought the original sale deed from the developers but had not received it. The lender submitted records of email correspondence demonstrating its efforts to obtain the document. HDFC also clarified that following the merger of HDFC Ltd with HDFC Bank, no deficiency in service could be attributed to the institution.
The builders did not appear before the commission despite receiving notices and failed to file any response. Consequently, the case proceeded ex parte against them.
After examining the documents and evidence submitted, the consumer forum concluded that the developers had violated Clause 7 of the tripartite agreement, which clearly mandated the submission of the original registered sale deed to the lender. The commission observed that the builders’ failure to fulfill this obligation constituted a clear deficiency in service.
The bench, comprising Commission President Anil Kumar Pundir and members Shailja Sachan and R.P. Singh, held that responsibility for the missing document rested entirely with the developers. The commission consequently absolved HDFC of any wrongdoing and ruled in favour of the homebuyer.
The judgment reinforces the accountability of developers in adhering to contractual commitments and highlights the role of consumer forums in safeguarding the interests of homebuyers facing procedural and documentation-related issues in residential projects.
