In a significant ruling, the Chhattisgarh State Consumer Disputes Redressal Commission has directed a builder to repurchase a residential plot at twice the original sale price from consumer Dayawati Chauhan, citing unfair trade practices and deficiency in service.
According to case records, Chauhan had purchased a 1,000 sq ft plot in 2015 through a registered agreement that included a buyback clause. The clause stated that the builder would repurchase the plot after five to five-and-a-half years at double the original price, should the buyer choose to sell.
When Chauhan exercised this option after the stipulated period, the builder refused to honour the agreement. This prompted her to approach Chhattisgarh RERA, which dismissed the complaint on jurisdictional grounds. A subsequent plea before the District Consumer Commission in Baikunthpur was also rejected, with the body holding that the matter was contractual and belonged before a civil court.
Chauhan then appealed before the State Consumer Commission. A bench comprising president Justice Gautam Chourdiya and member Pramod Kumar Verma reviewed the case and, on September 3, held that the builder’s refusal amounted to both unfair trade practice and deficiency in service. The bench also observed that the District Commission had erred in treating the case as purely contractual, overlooking its fitment under consumer protection law.
The commission directed the builder to buy back the plot at double the original price, amounting to ₹10.50 lakh. In addition, the builder has been ordered to pay 6% annual interest on the buyback sum, calculated from the date of the complaint, November 21, 2023. The order also includes compensation of ₹35,000 for physical and mental distress and ₹10,000 towards legal costs.
Chauhan has been instructed to cooperate with the builder in completing the formalities required for the repurchase process.
.png)