Home buyers have, of late, been winning against builders for delay of projects at the National Consumer Disputes Redressal Commission. The Commission has ruled against leading builders like Jaypee, Lodha Group, Unitech, imposing a penalty of 12-18 per cent. Abhishek Khare, partner at Khare Legal Chambers LLP, who represents home buyers against Mumbai-based developers, lays out the thumb rules for buyers.
What are the most common complaints against builders?
Delay in delivery of projects, not providing amenities as per the contract, change in project layout without consent are some common issues most buyers face.
What must buyers take into account while filing for cases?
The best thing to do is, have everything in writing from the builder. Most of the time, builders promise the moon, but buyers need to be cautious. Buyers should insist that the builder give the final blueprint of the project. If you have the final blueprint, the builder cannot say he will build a 40-storey building in the free space in which a garden was promised to you. Buyers need to take a recorded list of amenities promised to them and check whether the builder has the necessary approvals from the respective municipalities. They must insist on everything being in writing.
When buyers meet builders they need to make sure they are recording everything. They should not sign anything without considered and studied legal advice. Most times, buyers are under pressure to buy a house due to EMIs and pressure from their families, and forget to do a detailed check, especially of aspects like title deed.
What are the common traps home buyers fall into?
Title deed is a tricky yet important aspect, which buyers need to thoroughly check. In many suburbs in Mumbai and Pune, building permissions not given. Many think reading the ‘Saat Baara’ (7/12 extract) is a title search, but it is not. The ‘Saat Baara’ is an extract from the land register of any district maintained by the Revenue Department in Maharashtra. The document contains details of ownership, liabilities and land occupancy. One needs to go beyond that and study all the revenue records for the title search. This is a detailed process.
Even in bank-approved projects, where banks pay their lawyers Rs. 1,500-2,000 to do a title search, these are not foolproof. If there is a dispute or a third party claim, you cannot say it is a bank-approved project and you did not do the title search. The Transfer of Property Act requires you to do an independent and comprehensive due diligence and title search.
If a buyer decides to take legal recourse, where must he go?
The first step should be to approach the appropriate Consumer Disputes Redressal Commission, depending upon value. If there is an element of cheating involved, a criminal case can also be filed. A lot of people recommend filing a case in the Competition Commission of India. But they look only at market dominance and not project delays, etc.
What must be kept in mind while approaching the Consumer Disputes Redressal Commission?
A large number of home buyers coming together and having a common case would be good, as the Jaypee case showed. Buyers should have all their documents in place. They have to be realistic in their compensation claims. For example, a lot of people come and tell us the builder who has delayed giving them one flat should give them two. That is not possible. Also, buyers need to be patient to get a verdict, because the legal process takes time.
If a buyer needs to file a case, should he wait for the Real Estate Regulatory Authority to come into place?
While RERA offers protection to buyers, my advice is, buyers should not wait for it to come into effect. They need to take legal action as soon as they are aggrieved. There are enough laws to protect your rights.
