Chandigarh State Commission Holds WTC Noida Liable For Non-Delivery Of Units; Orders Refund And Compensation

The Chandigarh State Consumer Disputes Redressal Commission, comprising Justice Raj Shekhar Attri (President) and Preetinder Singh (Member), has held WTC Noida Development Company Pvt. Ltd. liable for deficiency in service for failing to deliver two units despite receiving nearly 70% of the sale consideration

Brief Facts

Malvinder Singh Chatha, the complainant, booked two units in the WTC Chandigarh Aerocity, Mohali project developed by WTC Noida Development Company Pvt. Ltd. (Opposite Party). On July 2022, he paid a total of Rs. 69,80,904/-, which amounted to nearly 70% of the total consideration of Rs. 1 crore.

Despite receiving substantial payment, the opposite parties never executed a Developer-Buyer Agreement and only assured the complainant that possession would be delivered by 2023–24. Repeated site visits revealed that no construction had begun. The complainant also sought statutory documents such as RERA extensions, GMADA dues, building plans, and other approvals, but the opposite parties failed to provide any. In 2024, GMADA cancelled the entire project site due to the company's non-payment of dues.

Aggrieved by the failure to deliver possession, the alleged misrepresentation regarding project approvals, and the complete absence of construction, the complainant approached the Chandigarh State Consumer Disputes Redressal Commission.

The complainant argued that the Opposite Parties induced him to book the units by falsely claiming that the project had all necessary approvals and that possession would be delivered by 2023–24, even though they had not obtained mandatory sanctions, layout plan approvals, or RERA extensions. He submitted that the Opposite Parties committed deficiency in service by failing to deliver possession or complete the project despite receiving substantial payment. He sought a full refund of the amount paid, plus 18% interest, compensation, and litigation costs.

As the opposite parties failed to appear before the Commission despite service and were proceeded ex parte, all allegations remained unrebutted.

Observations by the Commission

The Chandigarh State Consumer Disputes Redressal Commission observed that the Opposite Parties' conduct amounted to a deficiency in service and unfair trade practice. The commission observed that the Opposite Parties acted with an intent to deceive and induce the complainant from the very beginning by falsely claiming that the project had necessary approvals.

The commission noted that despite receiving about 70% of the sale consideration, they failed to complete the project, deliver possession, refund the amount, execute a Developer-Buyer Agreement, or even commence construction, even though more than three years had passed.

The Commission further observed that the Opposite Parties collected money from the complainant without obtaining the required approvals, layout plan sanctions, or extensions under RERA. Their failure to appear and defend themselves led to the allegations remaining undisputed and to an adverse inference. The Commission concluded that this series of acts, including misrepresentation, statutory violations, and unlawful withholding of funds, caused prolonged mental and financial harassment to the complainant and established a grave deficiency in service.

The commission, partly allowing the complaint, directed WTC Noida Development Company Pvt. Ltd. and its directors, jointly and severally, to:

• Refund Rs. 69,80,904/- with 12% p.a. interest from the dates of deposit, without TDS.
• Pay the amount within 30 days; thereafter, it shall carry 15% p.a. interest until realisation.
• Pay Rs. 75,000/- as compensation and Rs. 35,000/- as litigation costs within 30 days.
• In case of default, compensation and costs shall carry 9% p.a. interest until realisation.
• Lending bank/financial institution shall have the first charge to the extent of the outstanding loan.

Case Title: MALVINDER SINGH CHATHA vs WTC NOIDA DEVELOPMENT COMPANY PVT. LTD CC NO. SC/4/CC/89/2025

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