Are you a stressed home buyer? Are you a cheated by developer ? Still paying EMI and facing violation of BBA? Developer is not offering possession of unit then here is the check list of all legal steps to deal with errant developers that can bring developer either on the table of responsibility or either delivery of unit or refund!
Delay in possession, incomplete structure, stalled projects, no occupancy certificate, run away builder are some of the common factors in real estate sector. Home buyers invested savings of entire life, paying EMI, living on rent, feeling cheated because developers could not deliver the units as promised and searching for legal help to drag them in court.
Home buyer are running from pillar to post to either get their unit or refund from developers but unfortunately the developers are neither following BBA nor replying easily. Most of them are either underground or settled overseas to escape or wasting time in the name of false promises, again.
For home buyers neither police FIR nor physical protest has been able to restore work and construction of such projects. Protest of home buyers of Amrapali group for 65 days were one of the longest protest that forced MP from Noida Dr Mahesh Sharma, MLA Pankaj Singh and Gopal Krishna Agarwal, National Spokesperson of Bharatiya Janta Party (Economic Affairs) to come. But all went in vain since nothing could ensure construction and possession to 46000 units!
Amrapali Group is not only one because the list is too long that includes Jaypee, Unitech, ABW, Patel, Airwil, Parshvanath, Sampada Livia, Shubhkamna and many others. Home buyers are clueless because most of them belongs to working class who had invested as end users and don’t have portfolio like union minister Rajyavardhan Rathore, his unit in Parshvanath Exotica settled only after intervention of SC.
But here we have brought possible and strong legal procedures to tackle the corrupt builder for your right, home:
1.Association– It is always advisable to form a legal identity to fight with corrupt builders. Developers are not adhering of investors or home buyers because they know that home buyers are not united and for them handling individual buyers are cup of tea.
- As per UP-RERA, Now home buyers must use all connections and approaches to get connected with other investors and buyers and begin process of formation of legal association. It is similar to formation of AOA (Apartment Owner Association) that generally comes in to existence after owner get occupancy in society or project.
- Rather than fighting individual, it is smart enough to handle them as a group of buyers with legal entity who have all rights to raise and ask question. Selected members and executive committee can conduct GBM (General Body Meeting) and plan future course of action with agreement of all members.
2. Complaints in RERA– Real Estate Regulatory Authority is now operational in states and they have very simple steps to file complaints on nominal fee. Based on RERA Act 2016, it allows home buyers to file complain and seek solution from state body.
- The act proposes to resolve matter in duration of 3 months or 6 hearings. Although this have been proved to be impractical due to poor clauses in law and behavior of anarchic builders. Builders are still finding loopholes in RERA and delaying further.
- But builders can’t escape for long time from RERA since it has strict provisions that advocates actions like; takeover of project by them and handover to group of buyers or enroll co-developer for completion, restriction of new sale, freezing account, suspending land title, refund with interest and jail term etc.
Also read > UPRERA plans to take over delaying projects.
3. EOW– Better known as Economic Offence Wing, EOW is a medium to file complaints against economic fraud. Group of buyers can file joint complaints at EOW and ask for enquiry. Here also role of legal association work well since more no of complaints will derives faster action.
- Recently UP has established a separate wing at Noida to investigate economic offences related to real estate.
4. NCDRC– National Consumer Dispute Redressal Commission has been known for consumer friendly orders and real estate is not an exception. Many times NCDRC has ordered in favor of home buyers and hard on developers. Here also association or group of buyers will have edge on benefit since NCDRC don’t accept cases less than INR 2.00 cr.
- After final order, rest of the buyers can attach their cases with the same kind of justice. Charges vary but for an association it could be nominal to handle.
5. NCLT– Latest changes in IBC (Insolvency and Bankruptcy Code) has made home buyers eligible to approach NCLT court for justice. NCLT is an open platform where single home buyer can also complain and then rest of the buyers can attach their complaints like NCDRC. Charges will be normal for an association.
- NCLT appoints IRP (Insolvency Resource Professionals) to begin process of insolvency after duration of 270 days to make it operational via accessing all assets. But in real estate, IRP has been a failure and even more damaging.
- Till date, IRP has been failure to resolve Jaypee, Amarapali, Unitech and other developers so matters are now in SC for solution.
- Secured creditors like; bank, NBFC and other lenders approaching NCLT for their fund infused.
6.SC– Reaching SC is last option but it can’t be ignored. In fact this is long and painful process for buyers but in present scenario SC is only option to get right justice. Here one has to be quite awaken to check whether the developer is on the verge of insolvency or not because that is the only option to get space in SC directly.
Also read > Supreme Court proceedings in Amrapali Group
Developers are chased by not only buyers but also from banks, development bodies, institutional investors and other creditors too. Carrying higher rights than home buyers, they get priority from govt. and court to settle matter.
This acts in favor of home buyers too since they directly appeal in SC for intervention and their rights as common buyer. Various groups of home buyers are fighting in SC against insolvency and recovery of invested money. Matter of Amrapali, Jaypee and Unitech are live example of such issues.