Mumbai, 19 January 2024 – The District Consumer Disputes Redressal Commission, Mumbai Suburban, has issued a landmark ruling against Oyster Living LLP, holding the real estate developer in Mumbai accountable for deficiency in service, unfair trade practices and devising unfair contracts in a long-standing property dispute filed by NRI homebuyer Dawood Nizamuddin Parkar. The case reinforces consumer rights in India and strengthens legal protection for NRI real estate buyers in Mumbai.
Consumer Protection in Mumbai Real Estate
This ruling highlights critical concerns within the Mumbai real estate market, where several developers misrepresent land titles, fail to secure RERA approvals, and mislead buyers with false promises. The decision reaffirms the importance of real estate consumer rights in Mumbai, ensuring buyers have legal avenues to challenge fraudulent builders.
Legal Perspective from Advocate Deepak Agnihotri
According to Advocate Deepak Agnihotri, a Consumer Lawyer in Mumbai specialising in real estate disputes and builder fraud cases, this decision is a crucial step toward ensuring transparency and accountability in the property sector in Mumbai. Homebuyers—especially NRIs investing in Mumbai real estate—must conduct thorough checks before committing to property purchases in India.
Case Background: NRI Real Estate Fraud in Mumbai
Parkar booked a 2 BHK flat in Kandivali West, Mumbai, in 2016, responding to an advertisement on Magicbricks.com, a popular Mumbai property listing platform. The developer assured clear land ownership and all statutory approvals, leading Parkar to make payments totalling ₹15,67,500. However, in 2019, Parkar discovered that the project lacked RERA registration, had no statutory approvals, and that the builder did not legally own the land.
Fraudulent Practices by Mumbai Builder
Despite repeated requests, Oyster Living LLP in Mumbai failed to execute a formal Agreement for Sale, leading Parkar to demand cancellation and a refund. The developer coerced him into signing a one-sided deed of cancellation, promising to repay ₹17,22,451 in seven instalments.
By December 2021, only ₹1,50,000 had been refunded. With no response from the builder, Parkar pursued legal action under the Consumer Protection Act, 2019 though Advocate Deepak Agnihotri. A Police complaint was also filed before concerned police station in Mumbai, however no action was taken.
Court Ruling against Oyster Living LLP
Due to non-compliance by the builder, the Commission ruled ex-parte. The panel, chaired by Hon’ble Smt. Samindara R. Surve (President) along with Shri Sanjay S. Jagdale and Shri Sameer S. Kamble (Members), determined that:
✅ The complainant was a genuine property buyer in Mumbai
✅ The developer engaged in fraudulent real estate practices
✅ The builder was guilty of service deficiency in Mumbai real estate
✅ The refund claim was legally justified under the Consumer Protection Act
Legal Advice for Homebuyers from Advocate Deepak Agnihotri
Advocate Deepak Agnihotri, a trusted Consumer Lawyer for real estate disputes in Mumbai, urges homebuyers in India to:
✔ Verify RERA registration through official portals before investing in Mumbai real estate.
✔ Check land ownership documents to prevent builder fraud in Mumbai.
✔ Request a formal Agreement for Sale before making any payments for property purchase in Mumbai.
✔ Consult a real estate consumer lawyer in Mumbai in cases of delayed possession, contract discrepancies, or refund issues.
Final Verdict & Compensation Details
The Consumer Court in Mumbai ruled in favour of the NRI homebuyer, reinforcing his right to compensation and financial reimbursement. The exact compensation details will be outlined in the concluding portion of the judgment.
Consumer Protection Strengthened in Indian Real Estate
This case highlights the importance of legal safeguards for homebuyers in India, ensuring accountability among property developers in Mumbai. It also reinforces consumer rights protection under RERA and the Consumer Protection Act, 2019.
Download Judgement from here àDawood Parkar vs Oyster Living LLP
Link to judgement -à SHRI. DAWOOD NIZAMUDDIN PARKAR. v. M/S. OYSTER LIVING LLP. | District Consumer Disputes Redressal Commission | Judgment | Law | CaseMine
