NCDRC Upholds Builder’s Flat Cancellation, Allows 10 Per Cent Forfeiture Over Buyer’s Payment Default

Mumbai, November 3, 2026: The National Consumer Disputes Redressal Commission (NCDRC) has ruled in favor of Jawala Real Estate, allowing it to cancel a buyer's flat allotment and forfeit 10% of the original sale price. The decision follows a complaint filed by Pratap Premchand Agarwal in 2018 regarding a flat in the Marquise high-rise in Lower Parel.

Agarwal claimed the developer had not completed construction as per the agreement, demanding a refund of the forfeited amount and statutory dues. The builder refuted these allegations, presenting an architect's certificate, photographs, a Building Supervisor's acknowledgement, and construction records to show the project had made progress.

The NCDRC found that the buyer had defaulted on payments, dismissing his argument that the demand for payment wasn't aligned with actual construction. They also rejected his claim of an arbitrary price hike, as no documents supported an initial consideration of Rs 6.65 crore. The commission concluded that the cancellation and forfeiture were justified under the terms of the agreement.