Where exactly does the customer stand in the so- called real estate boom?

The bloom in the property arena witnessed the rise of numerous colonizers and developers, who have left no stone unturned in playing upon the passionate sides of individual inclination to possess one’s own particular dream house, business space and so forth. Also the regularly sky-rocketing cost of properties has pulled in numerous property enthusiasts to put resources into the land with a trust that their cash will give the best returns if put into some premium pieces of land.

The enthusiasm of the buyers in the property leads to substantial bookings of different real estate structures. Enthused by the alluring and effective real estate advertising, the buyers even do not like to take any pain in checking out the credibility of the builders and invest to the best of their financial capacity. It’s now an open secret that the promises made by the builders in India often fail to be purely true.

Believing blindly in what the builders say, people pay the asked amount staying under the debt of banks and other financial establishments. When they see that the concerned builders do not seem to deliver what they promise, their dreams of savings start evaporating. Suddenly the concerned builders start ignoring calls regarding refund or the expected time of delivery. This is where property disputes start taking place. Now the question arises what should the helpless buyers do and where they should go.

Under such frustrating circumstances, the customers should not feel themselves helpless and let the mighty builder run over them. The law of the land is standing in their support, and the legal framework available to an aggrieved homebuyer has been considerably strengthened since this piece was first written.

The Real Estate (Regulation and Development) Act, 2016 (RERA) is now the primary remedy. It makes registration of real estate projects compulsory, and an aggrieved buyer can file a complaint before the Real Estate Regulatory Authority (in Delhi, the Delhi RERA) seeking a refund of the amount paid along with interest, or possession with delay-period interest, where the builder fails to deliver as promised.

The Consumer Protection Act, 2019 (in force from July 2020, replacing the 1986 Act) is also available to homebuyers as “consumers”. It revised the pecuniary jurisdiction of the District, State and National Consumer Disputes Redressal Commissions and introduced e-filing of complaints and mediation, making the redressal process more accessible.

In addition, following the 2018 amendment to the Insolvency and Bankruptcy Code, 2016, homebuyers are treated as financial creditors of the builder. This allows them to initiate, or participate in, insolvency proceedings against a defaulting developer. These remedies will constrain blundering developers to pay back the value to the buyer or to hand over possession.

The purchaser/buyer is an entity of prime importance as per the legal provisions of the aforementioned laws. Further, it would be quite good to get advice from a competent lawyer. For that purpose, we are backed by a pool of experienced and qualified lawyers who have handled hundreds of property disputes with exemplary calibre and competency. Every customer must understand that legal terms are of complex nature and should be handled only by those who are capable of resolving the disputes with absolute farsightedness and expertise.