The right to seek redressal against unfair trade practices or unscrupulous exploitation by Builders and Developers
“Victims of RNA Corp.” OR Victims of Any Unscrupulous Builder, What are the options available for Home Buyer and Aggrieved Flat Owners in Redevelopment Project
How to File a Complaint against a Builder, What are the options available
Any citizen can file a case against a developer. There are several options and situations under which a property buyer can file a complaint. Types of complaints are:
- Consumer case
- Suit for Specific Performance of Contract
On the following grounds in which a property buyer can drag an incompetent property developer on violations/ breach of ground
- Non-execution of relevant sale agreement despite having received a substantial advance amount
- Non-issuance of copies of all relevant documents viz.; development agreement, power of attorney, sanctioned plan (by concerned Regional Authorities), specification of construction materials/design as per sanctioned plan and any other relevant documents
- Charged higher than the agreed amount
- No issuance of proper receipt(s) against the paid amount
- Poor quality construction
- Delivering of a house not complying to agreed specifications
- No free parking space within the premises
- Did not form a co-operative housing society and handed over to members
- Non-provision of water storage tank
- Non-provision of proper ventilation and light
- Delayed possession beyond the stipulated time limit
- Not obtaining completion certificate from the concerned registered (by the authorities) architect
- Non-issuance of Occupancy Certificate at the time of delivery of respective flats/house to its occupants
- Non-declaration of expenses against which the developer collected money
And many more…
Any project falling short of above listed causes home buyers to approach for remedy from options available 1 to 5
1) Cheating Case (EOW) – Jointly or Individually Legal Complaint
2) Cheating Case (EOW) with Private Complaint to the Metropolitan Magistrate (MM)
3) Specific Performance in High Court
4) National Commission if agreement value is more than 1 Crore (New Delhi)
5) State Consumer if agreement value is less than 1 Crore (Mumbai)
How to file a complaint against a builder in the Consumer Court?
With builders coming under the clause of being a service provider, the process of filing a consumer court complaint against them is the same as with other service providers. To file a complaint, you need to adhere to the following steps:
- Send a well drafted Legal Notice to the builder stating your reasons of discontent
- Await for a response for the stipulated time from the other party
- On no-response, prepare a petition stating facts and evidences with the help of expert legal advice
- Approach the Consumer Court and file your petition against the builder
As per a judgement passed by the National Commission in the case of Jayantabhai Ranka and Arunaben Kapadia vs Ravi Developers, the Commission pointed out that the cause of action on the builder continues till the allotment of the site or full refund of money on refusal to allot.
This means, no matter how much the delay, the builder is liable to properly honour his service agreement. The other important point that this particular case also highlighted is that ‘each property developer is liable to execute an agreement for sale’. And failure to do so can be a cause of action against the builder in the Consumer Court.
- How to approach district consumer Forum
The complaint can be made on plain paper and you can file it in person or through an authorised agent, after it has been notarised, through registered post or regular post. It is important that you serve a personal or legal notice to the opposite party before filing the complaint. You will need to file four copies, plus additional copies for each opposite party. And the complaint must be filed within two years from the date of the cause of action having arisen. The court fee for cases involving up to Rs 1 lakh is nil for those holding Antyodaya Anna Yojana cards and Rs 100 for the rest. For cases involving up to Rs 5 lakh the case fee is Rs 200, for case up to Rs 10 lakh the court fee is Rs 400 and for those up to Rs 20 lakh the case fee is Rs 500. The demand draft should be made out to the President, Consumer Disputes Redressal Forum, (name of) district.
- How to approach state consumer Forum
Cases where the value of goods or services exceeds Rs 20 lakh can be filed and orders of the district forum challenged here within 30 days of the order being passed.
(a) Documents of record with correct name of all parties and their addresses;(c) More than four additional copies for each respondent for filing an appeal;(e) A statutory deposit of Rs 25,000 or 50 per cent of the award / compensation amount, whichever is less, is to be made by the appellant / opposite parties.
- (d) Any conditional delay, interim orders and other petitions to be submitted along with an affidavit; and
- (b) Certified copy of the district forum order;
- The court fee for cases above Rs 20 lakh and up to Rs 50 lakh is Rs 2,000 while the court fee for cases up to Rs 1 crore is Rs 4,000. The demand draft should be made in favour of the registrar, (name of) state commission and be payable in that state only. To file an appeal you need the following:
- How to approach National Consumer Disputes Redressal Commission
A dissatisfied consumer can file a complaint directly with the national commission or appeal against decisions of the state commission within a month from the date of the order. The court fee is Rs 5,000 and the demand draft should be in the name of The Registrar, National Consumer Disputes Redressal Commission. There is no fee for filing an appeal before the state or national commission. You can appeal against the orders of the national commission in the Supreme Court within a period of 30 days.
|Sl. No.||Total Value of goods or services and the compensation claimed||Amount of fee payable|
|(1)||Upto one lakh rupees – For complainants who are under the Below Poverty Line holding Antyodaya Anna Yojana Cards||Nil|
|(2)||Upto one lakh rupees – For complainants other than Antyodaya Anna Yojana card holders.||Rs.100|
|(3)||Above one lakh and upto five lakh rupees||Rs.200|
|(4)||Above five lakh and upto ten lakh rupees||Rs.400|
|(5)||Above ten lakh and upto twenty lakh rupees||Rs.500|
|(6)||Above twenty lakh and upto fifty lakh rupees||Rs.2000|
|(7)||Above fifty lakh and upto one crore rupees||Rs.4000|
|(8)||Above one crore rupees||Rs.5000|
You may simultaneously approach EOW with legal advice along with Consumer Court Case
1) Cheating Case (EOW) – Jointly or Individually Legal Complaint
2)Cheating Case (EOW) with Private Complaint to the Metropolitan Magistrate (MM)
This option of specific performance in High Court is little expensive compare to Consumer Court but result oriented all you need a good Advocate and result can be expected in 4 to 8 months where as in consumer court it may take 12 to 24 months
This option is expensive as you have to pay court fees the upper cap of the court fee is Rs 3 Lakh the court fee structure calculation table is given for your reference
COURT FEE SLABS
SLAB-A = FIRST RS. 15,00,000 —– RS 31,230.
SLAB-B = RS. 15,00,001 TO RS. 26,00,000——@RS 2,000/RS 1,00,000.
SLAB-C =ABOVE RS. 26,00,000——————–@RS1,200/RS 1,00,000.
SLAB-D = FIXED ——————————————————–RS 200
e.g. COURT FEES FOR RS. 30,00,000, 40,00,000, 50,00,000, 75,00,000 AND 1,00,00,000 ETC. CAN BE CALCULATED AS UNDER:-
The Court Fee Above 2CR 39LAKH is RS 300,000/- that means maximum court fee is 3 lakh only
For Court Orders in Favor of Home Buyers and Aggrieved Flat Owners in Redevelopment Project click the link below