In Brief
A real estate developer (Fortune Infrastructure) booked a flat to purchasers (Respondents) for Rs. 1.87 crore but transferred the project to a third party without valid justification, refusing to deliver. The National Consumer Disputes Redressal Commission awarded Rs. 1.87 crore refund plus Rs. 3.65 crore compensation. The Supreme Court upheld the refund and confirmed deficiency of service but reduced compensation to Rs. 2.27 crore for the flat and Rs. 20 lakh for parking, finding the NCDRC's estimate exceeded actual market loss. The Court held developers must show bona fide efforts to perform; when refusing without valid reason, buyers deserve compensation for lost property appreciation based on verified market rates."
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