Real Estate Law: Cracking down on dodgy developers

The good news is that the ‘black sheep’ of this family are being brought to book, simultaneously increasing the contrast between unscrupulous operators and transparent, honest builders who have hard-won reputations to protect. The fact that the law is coming down heavily on unreliable builders is very positive, as it prevents the entire community from getting maligned. Also, consumers now know that their grievances will be heard and acted upon. 

In a significant ruling, a consumer disputes redressal forum has held a builder in Mumbai guilty of non-compliance of an order passed 9 years ago. He has been sentenced to 2 years imprisonment. The forum chief found that the builder had failed to hand over the flat within the promised time, despite receiving the entire sum. Based on the buyer’s complaint of deficiency in service, the forum had directed the builder to hand over the flat with all the amenities, along with compensation for delay and litigation expenses, within two months. However, even after all these years, the buyer’s wait for possession did not end, leading to the imprisonment decision. 

Apart from delay in possession, exploitation of FSI by stepping beyond permissible limits was an issue leading to another case in Mumbai. Such breach of entitlement is a serious legal offence. In yet another case, upon not completing the redevelopment project of an old building within the stipulated period, the builder threatened the buyers with cancellation of alternative accommodation payment, and was seen forcing the residents to accept possession in the absence of occupancy certificate. A complaint was filed against him by the members, and the case is currently under hearing. Going by the pro-consumer stance that the Indian legal system has now taken, it can be assumed that they will see justice being served. 

Failure to comply with the directives of consumer forum or commission rulings resulting in prison time is a rarity. However, when this does happen, it serves as a warning to builders to get their act together and toe the line.