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Legal Remedies for Homebuyers to address unfair practices by Builders .

Legal Remedies for Homebuyers.
Legal Remedies for Homebuyers

Homebuyers in India often face challenges due to unfair practices adopted by builders, including delays in possession, substandard construction, and misleading representations. Fortunately, there are several legal remedies available to address these issues. This blog post explores the various avenues homebuyers can pursue for redressal.


1. Real Estate (Regulation and Development) Act, 2016

The Real Estate (Regulation and Development) Act, 2016 is another medium that could prove beneficial for homebuyers in India whose rights have been aired from time to time. Homebuyers under RERA can raise grievances against builders for:


Delay in Possession: Section 18 of RERA allows buyers to seek compensation if the builder fails to deliver the property on time.


Deficiencies in Services: Homebuyers can file complaints regarding substandard construction or failure to comply with agreed specifications.


RERA has established regulatory authorities in each state to handle grievances effectively, promoting transparency and accountability in the real estate sector.


2. Consumer Protection Act, 2019

Homebuyers under the Consumer Protection Act, 2019 are classified as consumers. The process through which a consumer complaint can be addressed includes:


Consumer Forums: Buyers can approach district or state consumer forums based on the value of their claims. For properties valued up to ₹20 lakh, complaints should be filed at the district level; for properties between ₹20 lakh and ₹1 crore, at the state level; and for claims above ₹1 crore, at the National Consumer Disputes Redressal Commission (NCDRC) .


Compensation Claims: Homebuyers can seek compensation for damages incurred due to unfair trade practices or deficiencies in services provided by builders


3. Civil Courts

Civil court remedies, Homebuyers can also move in the civil courts for relief. This group of action warrants attention in case of:


Breach of Contract: If a builder fails to fulfill obligations outlined in the sale agreement, homebuyers can file a suit for damages or seek a refund along with interest under the Code of Civil Procedure, 1908.


Substandard Quality: Complaints regarding substandard materials or construction quality can also be addressed through civil litigation.


4. Competition Commission of India

If a builder is found to be abusing their dominant position or engaging in unfair trade practices, then homebuyers can lodge a complaint with the Competition Commission of India under the Competition Act, 2002. The CCI has the power to investigate such practices and impose penalties on offending builders.


5.  Criminal Proceedings

If the builder is engaged in fraud or makes false representations, the buying party can file criminal complaints against such persons under the appropriate sections of the IPC of India. This is a course to pursue when evidence of cheating or fraud is apparent.


6. Arbitration and Mediation

Many real estate agreements contain an arbitration clause under the ‘Arbitration and Conciliation Act, 1996’ that mandates the parties to resolve disputes through arbitration or mediation rather than through lengthy court procedures. Homebuyers can invoke this clause to seek a fair resolution of the issue. These methods often offer a quicker, more cost-effective alternative to litigation.

 

Conclusion:

Homebuyers in India have various legal remedies against unfair practices adopted by builders. They can take shelter under certain laws such as RERA, the CPA, as well as civil litigation and complaints to regulatory bodies, homebuyers can protect their rights and seek justice effectively. It is advisable for buyers to consult with legal professionals to navigate these options efficiently and ensure that their grievances are addressed appropriately.

 


 
 
 

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