There is a residential tower on the OMR, with nearly 800 apartments, for which booking commenced in 2007. Several customers who have booked apartments even from the year 2010 are still waiting to hear the dates of completion. The builders are not honouring their commitments to their customers. The agreements are always one-sided. They are also taking an unethical approach to customers who seek a refund due to the inordinate delay in the completion of the building. How can buyers be be prevented from getting cheated by such builders? What is our means of redress? What can we do about such delays? Can we do anything even before we book a new flat?
A Reader, Chennai
The terms and conditions between the Builder and the Purchaser set out in the Construction Agreement and other related documents have to be looked into to ascertain the time for completion of construction, provision of amenities, and compliance with all other commitments and representations made by the Builder.
If the Purchasers of apartments have adhered to their obligations under the Agreement and there is delay or default on the part of the Builder, several remedies are available to the Purchaser such as
l Filing a complaint before the Consumer Redressal Forum for deficiency in service;
l Civil Suit for damages for breach of contract;
l Initiate Arbitration Proceedings, if provided for in the Agreement;
l If the Builder is a member of CREDAI (Confederation of Real Estate Developers' Association of India), a complaint can be given at their office
The most effective course would be a complaint before the Consumer Redressal Forum taking into consideration the cost and speed. Please consult an Advocate and understand the terms of contract and other implications before proceeding with any of the above steps. A complaint before the Grievance Redressal Committee of the local chapter of CREDAI would also be a cost-effective and quick remedy.
If all the Purchasers are affected, it is advisable to form an Association of Flat Owners and have the same registered. The Association can take steps to address the issues and resolve them either by amicable discussions or through the legal process.
As a precautionary measure (prior to entering into Agreements with the Builder), besides checking the track record of the Builder in his earlier projects, the Purchaser can insist on clear clauses in the Agreement to the effect that in the event of any delay beyond the agreed timelines, an amount equal to the prevailing rental yield would be paid to the Purchaser by the Builder for the actual period of delay. National consumer helpline of the Consumer Redressal Forum is 1800-11-4000. To contact CREDAI, visit www.credaichennai.in.
