Chengalpattu: Consumer court imposes Rs 61 crore penalty on realtor

CHENGALPATTU: The Chengalpattu District Consumer Disputes Redressal Commission has directed a real estate firm to deposit Rs 61.29 crore with the State Consumer Welfare Fund, while also ordering it to refund a homebuyer after holding that it had indulged in an unfair trade practice by selling a disputed property.

The commission, comprising president Kasipandian and member Jawahar, passed the order against Right Choice SP Promoters Pvt Ltd, which allegedly sold a plot despite a civil suit over the property being pending before the Tambaram Munsif Court.

The commission directed the company to refund the complainant, Madhurambigai, the entire sale consideration of Rs 49,03,600 with 9 per cent annual interest from the date of purchase. It also ordered the developer to reimburse the registration charges of Rs 3,22,920, pay Rs 1 lakh as compensation for mental agony and Rs 15,000 towards litigation costs.

Madhurambigai had purchased a 1,196 sq ft plot at Agaram Then near Tambaram in November 2023. She approached the consumer commission in November 2025, alleging that the developer had sold her land without disclosing that it was already under litigation.

In its order, the commission noted that the company had allegedly sold properties to around 500 buyers and directed it to deposit 25 per cent of the value of those transactions calculated at Rs 61.29 crore with the State Consumer Welfare Fund.