NEFOMA

A consumer after is one who buys goods or services with his hard earned money. In case of delay, the builder is liable to refund the amount paid with interest (for the period of delay) as there has been a breach of contract. A promoter, who constructs or intends to construct such block or building of flats, shall specify in writing the date by which possession of the flat is to be handed over. Default would attract penalty under both Consumer Protection Act and the Flat Act. The builders are careless about compensation because there is no real estate regulator yet. A consumer doesn’t want to get into a legal tangle and just wants his flat in hand. Builders take advantage of this helplessness.

Using consumer courts, many citizens have been able to get back their money from sloppy builders. But many consumers also lose their cases in the consumer forums because they have not followed some important rules about filing their cases. The most important rule that every consumer must follow is to get a bill or receipt for whatever he buys or payment made. The Consumer Protection Act also empowers the courts to penalize consumers when they are at fault. There have been cases where consumers have been caught filing false complaints for gain, and they have been asked to pay up money to the opposite party.
Compensation agreement clause

Often, builders have an agreement clause that assures buyers a daily damage for delayed possession, but few buyers, if any, invoke it. Recently, the Maharashtra State Consumer Commission directed a developer to shell out Rs 20 lakh at the rate of Rs 2,000 a day for a delay in giving possession. It is a rare case in which damages per day were claimed, and given. The developer’s contention was that the old building was “in ruinous’’ condition and was on marshy land, which required piling work for about six months to make it strong. But, State consumer commission ordered builder to pay compensation and stated that builder problems can’t justify delay.

Points to Remember

Property buyer can present their own cases in consumer courts and do not need to engage a lawyer.

A consumer or the property buyer must file their complaint within two years of the dispute arising, after which it becomes outdated.

A written complaint, can be filed before the District Consumer Forum for pecuniary value of up to Rupees twenty lakh, State Commission for value up to Rupees one crore and the National Commission for value above Rupees one crore.

The builder problems can’t justify delay.

Default would attract penalty under both Consumer Protection Act and the Flat Act.

Every consumer must get the bill or receipt for whatever he buys or payment made.

Often, builders have an agreement clause that assures buyers a daily damage for delayed possession. Ensure your agreement includes agreement or compensation for delay in possession.