Builder Ordered to Pay ₹1.5 Lakh for Incomplete House in Jabalpur

JABALPUR, August 31, 2026: A consumer forum in Jabalpur has directed a builder to pay ₹1.50 lakh in compensation after failing to complete a house despite receiving most of the agreed construction payment.

House Construction Remained Incomplete

The complaint was filed by Narendra Kumar Soni, who entered into an agreement with builder Jai Prakash Raina on January 24, 2022, to construct his house for ₹12 lakh.

According to the complaint, Soni paid ₹11.20 lakh in instalments, but the construction work was still left incomplete.

The builder argued that the house could not be completed because the entire agreed amount had not been paid.

Consumer Forum Finds Deficiency in Service

After hearing both sides, the District Consumer Forum, Jabalpur, held that leaving the house incomplete caused mental agony to the consumer and amounted to deficiency in service.

The forum directed the builder to pay ₹1.50 lakh within 45 days. The amount includes ₹5,000 towards litigation costs.

 

7% Interest if Builder Fails to Pay

The order, passed on August 19, also states that if the builder fails to make the payment within the prescribed 45-day period, the amount will attract 7% annual interest.

Why This Matters for Homeowners

The case highlights the importance of having a written construction agreement, clear payment records and defined completion obligations when hiring a builder.

For homeowners, documenting payments and construction commitments can become important if a project remains incomplete and a consumer dispute arises.