Know why Shourya Towers PVT. LTD. had to pay huge compensation

Consumer court directs developer to refund money with interest and compensation for mental harassment.
Know why Shourya Towers PVT. LTD. had to pay huge compensation
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A consumer court in Jalandhar directed the Noida-based real estate company, Shourya Towers PVT LTD. to refund ₹41.97 lakh along with interest to a Jalandhar resident who paid for two flats nearly 2 decades ago but never received possession of them.

The buyer, Randeep Singh Chatha of Urban Estate had bought 2 flats in the company’s Shourya Green Project near the Amritsar bypass. From the sale price of the flat i.e.₹20,98,911, ₹1,00,000 was paid as the earnest money and the rest was paid in instalments over 2 decades. Other necessary fees and formalities were also cleared during this period and no dues were left towards the buyer. Even after all the money was timely deposited, the company was unable to give the buyer his possession and no reasons were stated. The buyer made several visits to the company’s office but always returned with just excuses and a hope to get his flat in the near future.

After so many failed visits, Chatha made his latest visit to the builder’s office in Noida on 20.06.2026 but again returned empty handed. Ahead of the visit, the buyer received an Email from the Company, promising a different flat in the same residential area but even then no required action was taken. A few days later another email popped on the buyer’s phone stating that a flat will be assigned to the buyer from the availability at the site. No necessary outcomes were still reported from the company’s side. This led the buyer to ask for his money back with interest but the company refused to accede to the request.

Having so many setbacks, the buyer finally filed a complaint against the company asking for ₹20,98,911 with 18% interest per annum along with ₹55,000 as litigation expenses and ₹40,00,000 as damages and compensation on account of mental harassment. The builder argued that the matter should be handled under civil law or RERA, not by the consumer court. However, the District Consumer Disputes Redressal Commission rejected this argument and ruled that the buyer could seek relief under consumer protection laws.

The commission found the builder guilty of deficiency in service and unfair trade practices. It ordered the company to refund ₹20.98 lakh for each flat, along with 9% annual interest from the date of payment. In addition to this the company was also asked to pay ₹30,000 per flat as compensation for mental harassment and ₹10,000 per flat towards litigation expenses.

The judgment closes a chapter of nearly twenty years of uncertainty for the buyer, while reinforcing the principle that homebuyers cannot be made to suffer endlessly for a builder's failure to fulfill its commitments.

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