The facts are buying a house is a big decision taken by most of the people. They invest their hard-earned money in purchasing a ‘dreamhouse’, but what if the builder fails to give possession on time?
- Civil Remedy In a situation where a builder breaches the agreement, home buyers can file a case in a civil court for injunction/damages or refund of amount and interest as per the Code of Civil Procedure, 1908 and sought relief under O. 39 R. 1 & 2 of the Civil Procedure Code. However, the limitation of adjunction in the civil court is much longer as compared to the other available provisions.
Mainly district courts in India have a pecuniary jurisdiction in those cases where the amount is less than Rs 2 crore. The original pecuniary jurisdiction of the High Court is for those cases where the money involved is over Rs 2 crore.
- Consumer Forum= In the case of any deficiency in services as per the agreement with the builder, a buyer can file a complaint under Section 12 of the Consumer Protection Act, 1986, within two years from the date of a dispute with the builder.
The Act defines the buyer as the one who purchases the house for his own use and not for commercial reasons.
Here buyers are given the following three-tier machinery for redress of grievances:
- District Forum
- State Commission
- National Commission
- Competition Commission of India= If a buyer/consumer thinks that the builder has used his position against him, he can approach the Competition Commission of India and file a complaint against the builder for misuse of his position. It is an affordable remedial option available to the home buyers.
In this situation, the Competition Commission of India investigates and imposes harsh penalties on the offenders in case they are found guilty. In the past few years, the Competition Commission of India has been active in this sphere and has imposed hefty fines on builders who have taken undue advantage of their position.
- Regulatory Forums= A home allottee can reach out to the regulatory authority—RERA (Real Estate Regulatory Authority) and file a case against the builder as per its Section 31.
RERA has been recently launched to address issues like delay, price, quality of construction, title and other changes in the real estate sector. This act makes it mandatory for all real estate companies to get registered with the regulator.
Further, all the promoters of a real estate firm have to keep a minimum escrow account for each of its projects. Any delay in meeting the deadline means the promoter will have to return the entire money invested by the buyer along with the pre-agreed interest rate.
- Criminal Courts= Under the provisions of the Indian Penal Code, 1860, the home allottee can file a criminal complaint against the builder for cheating, not responding to the grievances or poor quality of construction, etc.
The allottee can issue a statutory notice to the builder and in case the builder fails to respond to the notice, the other party can approach the criminal court. While battling the legal case, it is necessary for the complainant to bring out the builder’s irregularities.
In criminal cases, the trial is quick. The person at fault can be asked to appear before the court, and in the case of non-appearance, a bailable or non-bailable warrant can be issued.
