Delhi District Commission Holds Magic Eye Developers Liable For Unilateral Cancellation Of Flat Allotment

The Delhi District Consumer Disputes Redressal Commission bench comprising Poonam Chaudhry, President, Bariq Ahmad, Member and Shekhar Chandra, Member has held Magic Eye Developers Pvt. Ltd. liable unilateral cancellation of flat allotted to the complainant, reselling the unit and retaining the funds paid by him. Brief facts: The complainant booked a 1 BHK Studio apartment in a real estate project titled 'The Plaza at 106' launched by Magic Eye Developers Pvt. Ltd. ('developer'). Payments amounting to Rs. 12,30,641/- were made by the complainant towards the said unit. As per the understanding, possession was to be delivered by April 2016. However, it was stated that the possession was delayed for an inordinate period of time for reasons best known to the developer. It was further stated that due to inordinate delay, the complainant requested the developer to refund the monies paid by him but the developer neither responded nor refunded the money. Instead, the developer issued an antedated Final Reminder-cum-Pre Cancellation letter dated 30.01.2021 confirming the receipt of Rs. 12,30,641/- It was alleged that till date no Buyer's Agreement has been executed between the parties. The complainant subsequently came to know that the developer unilaterally cancelled the unit allotted to the complainant and sold the same to another entity. The developer then issued a cancellation letter dated 30.12.2022 without any refund. A legal notice dated 05.12.2024 was also served by the complainant but no response was received. Hence, a complaint was filed before the district commission praying for appropriate compensation. Despite issuance of notice, none appeared on behalf of the developer. Hence, the developer was proceeded as ex-parte by the commission. Observations of the commission: The bench examined all the facts on record and relied upon the judgment of the Supreme Court in Arifur Rehman & Ors. Vs DLF Southern homes Pvt. Ltd. to hold that the failure of the builder to deliver possession of the flat within the stipulated period amounts to deficiency in service. The bench further relied on the judgment of the Supreme Court in Fortune Infrastructure vs Trevor D'Lima wherein it was held that a person cannot be made to wait indefinitely for possession of flat and the buyer is entitled to seek refund of the amount along with appropriate compensation. Hence, the commission found the developer guilty of unfair trade practice and deficiency in service for cancelling the allotment, reselling the unit and retaining the funds paid by the complainant. Thus, the complaint was allowed with the following reliefs: Refund a sum of Rs. 12,30,641/- along with interest @9% p.a. A sum of Rs. 1,50,000/- as compensation for mental agony, harassment and inconvenience Case Title: Sh. Abhishek Pandey vs Magic Eye Developers Pvt. Ltd. Case Number: Case No. CC/469/2024 Date of Decision: 17.11.2025 Click Here To Read/Download Order

Delhi District Commission Holds Magic Eye Developers Liable For Unilateral Cancellation Of Flat Allotment

Aakanksha Bajoria

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