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Legal Remedies

Unlocking Legal Solutions: Empowering Buyers in Builder-Buyer Disputes

Defending Buyer Rights! Effective Legal Remedies for Builder Disputes

Why do you need to be aware of your legal remedies while buying properties? The simple answer is, nowadays, the biggest fear that any home buyer has is whether the property he invested in will be delivered on time or whether the quality he is paying for is worth it. This type of fear or question has been increasing rapidly since the COVID-19 Pandemic.

The real estate sector is acting as a catalyst in fulfilling the demand and needs of the country’s infrastructure and people’s dream houses. However, real estate has been under stress for a period of time. Further hit by the worst impact of the COVID-19 Pandemic on economic activity. Due to the pandemic massive impact, many projects suddenly stopped or slowed down due to supply chain disruptions and workforce disruptions, and shortage of funding. However, the Govt. of India has provided certain relief to developers by extending the deadline for the completion of projects. But, no relief has been provided to homebuyers. Whether extension in payment instalment or in waiver of delayed payments interest. That is why home buyers need to be aware of the various legal remedies available under Acts like CPA and RERA.

Though, Law is going to make things convenient for aggrieved home buyers. You can also consider legal remedies against the service provider under RERA and CPA if you are highly unsatisfied. Here are a few mods for legal remedies that can work for you to fight for justice against the unfair practices of the builder or developers.

legal remedies again builder available for homebuyers

RERA

RERA (2016):- Real Estate (Regulation and Development) Act regulates and promotes the real estate sector and protects home buyers. There are various legal remedies under the RERA Act for home buyers. The RERA also enforces industry accountability and transparency in each estate of the country with their own RERA authority.

NCDRC

National Consumer Disputes Redressal Commission (NCDRC): also provides legal remedies for buyers with higher value, such as over ₹10 crore as per 2019 amendments of the Act. To provide inexpensive, speedy and summary redressal of consumer disputes, quasi-judicial bodies have been set up in each District and State.

NCLT

National Company Law Tribunal is a quasi-judicial body to regulate and resolve civil corporate disputes. NCLT also provides legal remedies for real estate buyers. In case of bankruptcy, NCLT is the Adjudicating Authority for insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.

Filling a Case in Civil Court

If the developer has breached the clauses of the sale agreement, the home buyers can use their legal remedies by approaching the civil court. They can file a petition for damages caused or even a refund of the amount along with the interest under the Code of Civil Procedure, 1908. This is also applicable if the builder is using unfair means or committing unacceptable practices at the time of obliging with the builder-buyer agreement. A buyer can claim the recovery of the entire amount paid by him. However, a civil case takes a long time. Compared to other resources, even the court fee must be paid equivalent to the amount claimed. For a claim amount of up to Rs 2 crore. The District Courts can entertain the plea, while High Courts have the pecuniary jurisdiction for higher claims. This is exclusive of the lawyer’s fee and court fee.

Consumer Forum

According to the Consumer Protection Act 1986. A home buyer can use their legal remedies by filing a complaint against the builder within two years from the date of dispute at the Consumer Forum. The complaint can be the deficiency in the services on the builder’s part, as provided in the builders-buyers agreement. However, the complaint can be filed only by the consumer. A buyer is considered a consumer only when he buys the house for his end-use and not for commercial purposes.

Criminal Courts

You can also use your legal remedies by filing a criminal case against the builder. In case of cheating, breach of agreement, and not attending to the grievance under the Indian Penal Code, 1860. The buyer has the legal remedy to issue a notice to the builder if the notice remains unanswered. The buyer can approach the criminal court. Moreover, the complainant should also present proof of irregularities done by the builder. However, the trial is very fast. Both the parties have to be present during the hearing. A bailable and non-bailable warrant can also be issued in the case of non-appearance.

Arbitration

Arbitration can only take place if there is a clause of arbitration, Arbitration and Conciliation Act, 1996, in the builder buyer’s agreement. No lawyer is needed to pursue the case under this clause. The time taken is three-six months from the date of initial demand for issuance. However, the biggest disadvantage of choosing arbitration over other legal remedies is the fact that the arbitrators may be biased.

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