Means of grievance redressal for the aggrieved property buyers is through the consumer court. Real estate cases against the errant property developer can be filed through consumer court online complaint.
Delay in project completion leads to project cost escalation, the property developer fails to meet its commitment of handing over the possession of property, which is definitely a breach of agreement between the buyer and the developer. With the boost in real estate business in the very recent past, the cases of fraud related to property also increased because of a handful dishonest fly-by-night property developers.
The lengthy court trials had made matters worse for property buyers who felt they were denied timely delivery of justice leading to waste of time and depletion of their lifetime hard earned money. In order to provide relief to such buyers the consumer court is now admitting cases related to real estate as consumer court complaint, where even if the value of properties purchased are below Rs 1 crore, complaint can be filed. The complainant need not even engage a lawyer to file a consumer court complaint. For details on how to file a case in consumer court read on.
The procedure for Filing a Case in Consumer Court
- Notice to be served: Notice is to be sent to the construction company and/ or the developer (opposite party), prior to filing a complaint with the consumer court. The notice should mention the specific unfair practice/s the developer has engaged in discharging its contractual obligation/s in supply of goods and services to the complainant and ask for being compensated within a specific date. This may lead to the developer willing to compensate for the loss the complainant has suffered. In the event the developer declines or disregards such a notice served upon it, the matter can be taken up with the consumer court.
- File Formal Complaint: A formal complaint is to be filed with the consumer court under the Consumer Protection Act, 1986. Hiring of a lawyer, for filing such a complaint is not needed. The complaint form duly filled up needs to be submitted along with the details of the related facts, written on a plain sheet of paper. The name/s of the complainant/s and developer/s need to be mentioned.
For any help in drafting a petition and filing a consumer court complaint, consult consumer grievance redressal forums. It extends help to consumers for such services at nominal fees. International Consumer Rights Protection Council, a non-governmental organization, provides such legal aid.
The consumer is required to file complaint with the district forum under whose jurisdiction the developer resides or has an office or the location of the project in such jurisdiction.
- Payment of Fee: You need to deposit the stipulated fee by demand draft.
Different Jurisdiction Specified by Consumer Forum to Hear the Complaint
The following table shows the jurisdiction of the proper forum, based on the value of claim, which has authority to admit the complaint:
| Value of Claim | Authority for hearing the Case |
| < Rs. 20 Lakh | District Consumer Disputes Redressal Forum |
| > Rs. 20 lakh but < Rs. 1 crore | The State Consumer Dispute Redressal Commission |
| > Rs. 1 crore | The National Consumer Disputes Redressal Commission |
Applicable Fee details
What are Types of defaults against which complaint can be lodged?
- Sub-standard Quality of Work not in conformity with the agreement executed
- Construction without proper sanctions & approvals from the relevant authority/s
- Construction of buildings on land illegally acquired
- Committing Fraud with the booking amount
- Change of layout plan, land use, and modification in sanctioned structures, without the knowledge of allottee
- Non-Disclosure of Hidden charges
- Increase in charges for external development on the previously agreed amount
- Project Cancellation
- Forfeiture of the booking amount
- Delay in delivery of possession to the buyer
- Creating interest for a third party
- Failure to provide the completion certificate
The Supreme Court of India, in its landmark judgment, has passed a ruling which allows individual buyers jointly and collectively as buyers’ Association, to approach the National Consumer Disputes Redressal Commission (NCDRC) directly for resolution of any dispute between them and the real estate developer. Until the passing of this judgment by the SC the complainant could only move the NCDRC, after having taken up the case with the district or state-level authorities.
Provision under the Section 23 of the Consumer Protection Act, 1986, states that the complainant can move the Supreme Court in 30 days of the order being passed by the NCDRC, challenging the order of NCDRC.
What are Types of defaults against which complaint can be lodged?
- Sub-standard Quality of Work not in conformity with the agreement executed
- Construction without proper sanctions & approvals from the relevant authority/s
- Construction of buildings on land illegally acquired
- Committing Fraud with the booking amount
- Change of layout plan, land use, and modification in sanctioned structures, without the knowledge of allottee
- Non-Disclosure of Hidden charges
- Increase in charges for external development on the previously agreed amount
- Project Cancellation
- Forfeiture of the booking amount
- Delay in delivery of possession to the buyer
- Creating interest for a third party
- Failure to provide the completion certificate
The Supreme Court of India, in its landmark judgment, has passed a ruling which allows individual buyers jointly and collectively as buyers’ Association, to approach the National Consumer Disputes Redressal Commission (NCDRC) directly for resolution of any dispute between them and the real estate developer. Until the passing of this judgment by the SC the complainant could only move the NCDRC, after having taken up the case with the district or state-level authorities.
Provision under the Section 23 of the Consumer Protection Act, 1986, states that the complainant can move the Supreme Court in 30 days of the order being passed by the NCDRC, challenging the order of NCDRC.
This ruling by the Supreme Court of India has given immense leverage and hope to the aggrieved property purchasers, especially when delays in project completion have caused home buyers engaged in long-drawn conflict with property developers. It is sure to restore the failing confidence of homebuyers into the real estate sector, which is the need of the hour to boost the dwindling demand in the sector.
