Real Estate
Real Estate
Real estate is the umbrella word for any land-based property that includes a building or structures. It entails the acquisition, resale, and development of land as well as residential and nonresidential structures. After agriculture, real estate is the industry that generates the second-highest number of jobs in India. Customers know virtually little about this industry. This is the reason why they are taken advantage of and defrauded in this industry.
Grounds For Complaints
- False assurances about the provision of various amenities
- Delays in handing over possession even after making full and final payments.
- Clandestine sale of disputed properties which do not have a clear title.
- Wrong measurements and usage of sub-standard materials.
- Charging more money than agreed.
- Construction not completed within the promised duration.
- Not providing the promised booked plot or flat.
Complaint Redressal Mechanism
The consumer can register his complaint through various available mechanisms. These are provided below in a step-by-step manner. The complaint in consumer commissions can also be filed simultaneously with other remedies.
(i) Giving a Notice to the Builder:
The consumer shall issue a formal notice to the builder regarding the adverse practices being followed. If the builder does not respond within a reasonable period of time, the consumer can move further with the issue. At this point, the consumer can proceed under the RERA Act of 2016, and under the consumer protection act, 2019.
(ii) Under RERA, 2016
RERA is applicable to projects that did not have the completion certificate as of the date of the enactment. Therefore, the consumer can file complaints against projects that are registered with RERA. In doing so, the consumer shall go to the state website of consumer redressal in RERA cases and register their complaints. A step-by-step guide to the same could be found in the link given below:
Know more
Upon filling of the form, the consumer has to pay a small fee.
(iii) Approaching Confederation of Real Estate Developers’ Association of India (“CREDAI”)
Established in 1999, CREDAI is the apex body of private real estate developers in India, which has adopted a voluntary standard code of conduct aspiring towards ethical business practices. A complaint on their portal could be registered using the following link: Click here
(iv) Approaching any other appropriate judicial or quasi-judicial body
The complainant is free to take the service provider to a court or any other suitable venue (judicial or quasi-judicial). The proceedings in consumer commissions are not mired by the niceties of procedure, allowing the complainant to file a complaint for himself. As a consumer, the aggrieved party can take the service provider to the appropriate consumer commission, based on the pecuniary and territorial jurisdiction. The jurisdictions of the various consumer commissions are as follows-
a) District Commission: The aggrieved consumer can reach out to the District Commission under section 34 of the CPA, 2019, which provides that the district commission shall entertain matters where the value of the goods or services paid as consideration does not exceed more than one crore rupees.
b) State Commission: In cases where the value of the goods or services paid as consideration is more than one crore, but less than 10 crores, the consumer can approach the State Commission. Moreover, in cases of unfair contracts, the State Commission has original jurisdiction and the consumer can be directly approached. An appeal against the order of the District Commission can also be made under section 47 of the CPA, 2019.
c) National Commission: The National Commission can entertain matters where the value of goods or services paid as consideration exceeds 10 crores. Section 58 also provides that complaints against unfair contracts can be entertained by NCDRC when the amount of value paid exceeds 10 crores. The NCDRC also has appellate jurisdiction against the orders of any State Commission and Central Authority.
Moreover, it must also be kept in mind, that section 100 of the CPA, 2019 provides that the remedy under CPA is in addition and not in derogation of other available remedies.
Another remedy available to consumers is mediation. Chapter 5 of the Consumer Protection Act provides for establishing mediation cells and resolving consumer complaints using mediation. The following link could be used to file complaints online:
Consumer Helpline
(v) Central Consumer Protection Authority
If the commission finds violations of rights of consumers or in notice of trade practices which is unfair it can inquire or cause an inquiry, either on receipt of complaint or suo moto or as directed by Central Government. If the commission finds, after preliminary inquiry, of an existence of a prima facie case of consumer rights violation or it is in notice of any unfair trade practice or any wrong or inaccurate advertisement which is prejudicial to public interest or to the interests of the consumers,it can order an investigation by the District Collector or by Director General.
The consumer can complain to the District Collector of the respective district for investigation and subsequent proceedings by the CCPA. He/she/they can also submit a complaint via email, at com-ccpa@nic.in.
Regulatory Body
Real Estate Regulatory Authority is known by the acronym RERA Authority. It was created by the government to regulate how the real estate sector is run. The purpose behind the government’s introduction of the body was to provide accessibility and transparency for both parties engaged in purchasing and selling real estate. The body has the power to mandate the developers and real estate marketers to provide all pertinent project information. Additionally, each real estate agent is required to register both themselves and their projects with the right authorities. The main goal of the RERA Authority is to provide purchasers with relief by swiftly settling disputes. Enforcement of industry openness and accountability is another responsibility of the Authority.
Acts
1. The Real Estate (Regulation and Development) Act, 2016
This Act brings fair practices in the real estate sector that would protect the interests of the buyers. It also imposes penalties on errant builders.
Further, it establishes the Real Estate Regulatory Authority (RERA) in each State for regulation of the real estate sector and also to act as an adjudicating body for a speedy Redressal of disputes.
Landmark Judgements
1. Sanjay Gupta v. Three C Shelters
In the above case, it was held that the delay in handing the possession of the property is a valid ground for claiming of refund by the complainant.
2. Wg. Cdr. Arifur Rahman Khan and Aleva Sultana & others v. DLF Southern Homes Pvt. Ltd
Similar to the above case, the Supreme Court held that failure of the developer to comply with the contractual obligation to provide the flat to a purchaser within a contractually stipulated period amounts to a deficiency of service.
3. Imperia Structures ltd. v. Anil Patni
Here, the court held that the remedy under RERA is without prejudice to any other remedy available and, therefore, remedy under the CPA is available in addition to other legislations and not in derogation thereof.
Sample Complaints
Important Links and Resources
1. CREDAI
2. Real Estate FAQs