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An informative article by Advocate L. G. Sujatha on Flat buyers rights and Builders obligations to them.


GROUNDS ON WHICH FLAT OWNERS CAN GO TO CONSUMER FORUM FOR REDRESSAL AGAINST BUILDERS.

Many a times builders try to exploit people who buy flats from them and try to exhort money illegally. It is essential for consumers to be aware and vigilant about their rights and protest against such practices of builders. If people are aware of their rights, it would be rather difficult for the builders to cheat them and demand unjustified money. Flat owners can approach the consumer court after giving appropriate notice to the builder. The consumer court can be approached on the following grounds:

1. The builder handed over a house which does not comply with the specifications agreed upon.

2. If the builder delivers a construction which is defective or of poor quality one can get the     project evaluated by specialists/technical experts and seek to be compensated for it.

3. Where earnest money is deposited for allotment of plot or flat and no allotment is made, one can approach the consumer forum for refund of the entire money with interest.

4. The builder did not provide for parking space within the complex. Consumers need to be aware that there is a recent ruling of the Supreme Court in Nahalchand Laloochand Pvt. Ltd. v. Panchali Co-operative Housing Society Ltd. on this point that “Open-to-sky” areas or “stilted” (covered) portions of their flat complexes, usable as parking spaces, cannot be sold separately by flat builders/promoters/developers. The Supreme Court has made it clear that the promoter has no right to sell stilt parking spaces as these are neither flats nor apartments or attachments to a flat. These days builders are making a lot of money illegally selling open parking spaces.

5. The builder did not provide for basic amenities like water, light and ventilation for the flat owners.

6. Non-delivery of possession inspite of timely payment: If the builder did not hand over the flat in a habitable condition within the agreed time limit, one can ask for compensation and penalty for the extra time taken to complete the construction .

7. If the builder tries to charge higher than the amount that was agreed at the time of entering into the contract.

8. In case of societies, if the builder fails to form any co-operative society or disclose the names of members, etc., does not conduct meetings, takes unilateral decisions which are detrimental to the interests of the members of the society.

9. If the builder does not issue receipt for any amount paid or does not issue the possession letter/documents inspite of collecting full payment and does not give accounts for the expenses against which the builder has collected money.

10. Alloting excess space than actually agreed upon and demanding extra money.

11. Where the builder abandons any project and refuses to return the money collected with interest. Mode of issuing notice: Any person who has purchased a flat from a builder can go to the consumer court in case the builder fails to respond to his notice or does not act in a fair manner. The notice can be sent by registered post /under postal certificate, by speed post or by such courier service as are approved by the District Forum, the State Commission or the National Commission, as the case may be, or by any other means of transmission of documents including FAX message. Even in case the builder refuses to accept the notice, the sender of notice can retain the proof of notice sent which will be treated as evidence under Section 28A (3). According to 28 (4) all notices required to be served on an opposite party shall be deemed to be sufficiently served, if addressed in the case of the opposite party to the place where business or profession is carried and in case of complainant, the place where such person actually and voluntarily resides. An endorsement made by a postal employee or by any person authorized by the courier service to the effect that the builder or his agent had refused to take delivery of the postal article containing the notice or had refused to accept the notice by any other means will serve as evidence of service and builder will be deemed to be served.