Realtor gets 3-year jail for failing to refund homebuyer
Chandigarh, Oct. 8 -- For failing to comply with the panel's order and refund money to a homebuyer, the state consumer disputes redressal commission, Chandigarh, awarded three years' jail to the managing director (MD) of a city-based real estate firm Emerging Valley.
The MD Gurpreet Singh Sidhu was also told to pay a fine of Rs.25,000, failing which, he would undergo an additional 15 days in jail. The commission said the period already spent in custody as an undertrial will be set off against the sentence. This is his third conviction in a property related dispute (see box).
The case arose from a complaint filed by a homebuyer Rashmi Thakur against Emerging Valley Pvt Ltd over its project at Sector 115, on the Kharar-Landran Road. In its October 29, 2021 order, the commission directed the company and its responsible persons to refund Rs.28 lakh to Thakur, along with 12% annual interest from the date of deposit. The commission also awarded Thakur Rs.1 lakh as compensation for mental agony and physical harassment and Rs.33,000 towards litigation costs. The order was to be complied with within two months, but the directions were not followed. Thakur thus filed an application seeking enforcement of the order.
During the proceedings, Sidhu was summoned under Section 72 of the Consumer Protection Act, 2019. He initially pleaded not guilty and claimed trial. The commission recorded that he later absconded and was declared a proclaimed offender on March 21, 2024. He was arrested later on April 20, 2025.
On March 12, 2026, Sidhu paid Rs.2 lakh to Thakur through a demand draft. The commission noted that the amount due, according to the calculation sheet placed on record, was Rs.54 lakh as on February 28, 2022, with future interest. No further payment was made.
Sidhu submitted that he was facing financial difficulties and unable to make further payment. The commission, however, rejected the plea for leniency, noting that he had been given several opportunities to comply with the order.
The commission observed that Sidhu had "consciously and deliberately failed to honour" its 2021 order.
Holding him guilty under Section 72 of the Consumer Protection Act, the commission said, "The intention to defeat the legal mandate and avoid the liability imposed by the decree is clearly established." While deciding the sentence, the commission took note of the prolonged litigation faced by Thakur. It observed that her "plight and suffering" could not be understated as she had been "forced to engage in prolonged litigation for enforcement of a lawful order"....
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