Consumers can now directly file a case against developers for not handing over possession in time, or not providing the basic amenities mentioned in the agreement. With increasing awareness, consumer courts are packed with cases related to real estate. A number of cases are registered, for cheating against the builders. Also, one can file cases against authorities like HUDA, related to disputes on land.
Mythbuster Anushree
According to the Consumer Act, 1986, a decision has to be made within three months from the date of summoning the opposite party. It can be extended to 6-7 months if the case needs more time. Arbitrations costs could go up to lakhs of rupees and the arbitration has to reach a conclusion within one year. You can reach the consumer court under the following circumstances:
Holding Up Compensation
Property possession cases are taken up by the civil courts, but if the developer is holding your compensation amount, you can approach the consumer court.
Common Area Misuse
The developer cannot sell the common space for shops or telecommunication tower without your permission.
Inflated Price
Price may change during the time of construction due to several factors. However, if the developer cannot rationalize and give substantial logic for the hike in price, you can approach the court.
Also, developers are liable to maintain parking space, common walking area, parks, etc. In case he/she fails to do so, you have every right to file a case against him. The National Consumer Dispute Redressal Commission has ordered many authorities to compensate and thus consumers are encouraged to come forward and report all the illegal actions. In 2016, in one of the cases the commission has asked the Jaypee Group to 12% interest for the delay in completion of the project and to pay Rs, 5000 each day for failing to do so.
In another case, the commission asked the Lodha group to pay Rs 1.02 to the buyers with 18% interest and ordered Parsvnath Developers to refund the amount paid by the buyers. The number of cases related to real estate has multiplied in the last two years, now it takes almost one month for the case to be heard in the court, which previously took 2-3 days.
But as efforts are being made to regularize the real estate sector, the buyers face the question, whether to approach RERA or consumer court for the most efficient solution. However, before getting into the action mode, it is advisable to have a candid conversation with your developer. Most of the times, the developer would want an out of court settlement to avoid all the hassle.