VISAKHAPATNAM METROPOLITAN REGION DEVELOPMENT AUTHORITY vs CHAVVA SHEELA REDDY.

The Supreme Court addressed the issue of cost escalation in a fixed price contract under the Consumer Protection Act, 1986. The Court held that the appellant was not entitled to demand an escalated cost for the flat allotted to the respondent, as the original price was fixed and the terms of the allotment did not permit such escalation. The NCDRC's order to deliver possession at the original price was upheld, while the compensation awarded was set aside, affirming the principle that fixed price contracts do not allow for unilateral price increases.