Some consumers pay heavy price due to lackof any law governing real estates in the country
Vishnu Mohan | 19 Jun 2014

Due to delay in Real Estate Regulator Bill, consumers are facing hardship. Here is an example as to how some consumers who had booked for house/flats sometime back are yet to get possession, causing them severe stress and strain both financially and mentally (on health aspect).

An IT professional who had booked for a flat and was promised to get the delivery of the same within three years is finding that his dream house is nowhere near completion, after completion of three years. He is hard pressed on financial fronts because he is has to shell out a good portion of his salary for rent and EMI payments.

His marriage plans are also delayed because he does not want to get married unless he is able to move into his own house. His parents are helping him out in running the monthly bill in spite of his ability to earn a decent salary. This is one example in a place called NOIDA. It could be possible there are many more similar cases in different parts of the country.

Due to absence of any law governing the real estate sector, a buyer can consider himself lucky if he is able to move into his flat provided by the builder. Otherwise, he has to wait in uncertainty!!!

The situation at times gets worsened from the view point of the customers mainly for the following reasons:

  • Land acquisitions problems have delayed the projects

  • Some builders launch a project and based on its prime position, gets buyers in droves.  But instead of using this money to complete that project, they go on an expansion spree. 

  • A mere Rs.5-10 per square feet is the penalty for delay, and developers find ways to deny even that to buyers.

  • Lawyers dealing in consumer courts say that they see a rush of such cases as this is the only place for harried buyers. According to a lawyer in anonymous, "Buyers may get reasonable amounts as compensation for delayed possession from consumer courts but builders in almost all such cases challenge these orders and field legal eagles in higher courts of appeal.  The buyer, therefore, is helpless, there too."

  • AAP (Aam Aadmi Party) style dharnas and agitations in front of builders' offices or project sites have become a regular feature. 

With the passing of a law governing the real estate properly from all angles would help the consumers and customers in a big way in ensuring that their satisfaction levels are met properly.  Therefore, concerned quarters can do well to ensure after debates to ensure that the Real Estate Regulator Bill becomes a reality.