Now Reading: Delhi HC orders builder to refund Rs 18 lakh with interest
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Delhi HC orders builder to refund Rs 18 lakh with interest
The Delhi High Court has directed a builder to refund Rs 18 lakh with 6% annual interest to a homebuyer couple, Mr and Mrs Maheshwari, after ruling that the builder had coerced…
The Story in Brief
The Delhi High Court has directed a builder to refund Rs 18 lakh with 6% annual interest to a homebuyer couple, Mr and Mrs Maheshwari, after ruling that the builder had coerced them into a full and final settlement. The Economic Times reports that the couple had paid Rs 62 lakh for a villa in Gurgaon in 2008, but construction was slow and of poor quality. The builder cancelled the allotment in March 2009, forfeiting the earnest money. Later, under pressure, the couple accepted an alternative villa. The court held the settlement was not voluntary.
The builder had argued that the settlement was binding, but the court rejected this claim. The Rs 18 lakh refund covers the amount held back by the builder after the cancellation. The case highlights how builders often use coercive bargaining to force settlements on homebuyers who have already lost significant sums.
The Indian Opinion
Builders often push homebuyers into 'settlements' under pressure, then claim they are final. The Delhi High Court has rightly seen through this tactic, ruling that a coerced agreement cannot stand. But the burden remains on buyers to prove duress. The real test will be how many such forced settlements face similar scrutiny. When courts consistently unwind them, developers may think twice before exploiting unequal bargaining power.
Sources (2): economictimes.indiatimes.com, hindustantimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
