13920This is how low salary people should avail credit card benefits!

One of the sectors that generates jobs and on which the revival of the Indian economy is dependent is the real estate sector. Fortunately, the construction sector has grown at a rate of 6.2% in the Q3 quarter of October-December as the economy climbed out of the contraction zone and posted a growth of 0.4%.

To boost demand in the real estate sector, that in turn, triggers demand of cement, steel, decorative paint and numerous product categories connected with home décor, banks too are lowering interest on home loans.

As the economy improves generating more and more jobs, more and more apartments and houses will get sold.

This is also the time that consumers need to know how they can seek redressal against sellers if they feel they are not satisfied with the house. After all, most people invest years and years of savings – often of a lifetime – to buy a property. And when young professionals invest to buy an apartment, almost everyone gets into a long-term financial commitment with a bank from which he/she incurs a debt that is liquidated over a long term.

Often negotiations and arguments with the developer, or his representatives, produce precious little except heated arguments and a feeling of helplessness in customers.

Advocate Kumarjit Das has an advice for those going to purchase apartments.

“One should try and network with those who are buying flats in the same project. If they can get together, collective bargaining can work wonders. One can get phone numbers of other buyers from the employees of the promoter. Also one can use social media to spot buyers,” he said.

There are examples of customers successfully bargaining with big developers when negotiating in a body.

“If customers can get together they can also hire professionals for advice and guidance. For example, how many buyers of apartments know that if a developer is providing generator backup services, the generator room should have fire license?” said Das.

Another word of advice Das has for buyers is not to get too sold to attractive brochures. “Often these are just a marketing tool and are misleading,” said advocate Abhishek Mukherjee.

Majority of the complaints pertain to delivery delays and developers not fulfilling the promises on amenities and facilities, said lawyers.

“There are three platforms before an aggrieved customer vis-à-vis a real estate developer. Depending upon the claim, he can move the National Company Law Tribunal or consumer court or Real Estate Regulation and Development Act tribunal. In Bengal there is the tribunal of West Bengal Housing Industry Regulatory Authority which is equivalent of RERA,” said Das, who represents several consumers in different fora.

Lawyers pointed out that is buyers are stuck after paying money to the developer who is not delivering the property, the Supreme Court has given the buyers right to be recognised as financial creditors.

However, lawyers say that before moving any forum with his/her grievance a customer must send formal communication to the developer enlisting the problems/deficiencies he/she is facing and seek compensation. There should be about three reminders and follow up letters on the complaint before one moves any forum.

If the letters work, it saves the customer much trouble. But if he not satisfied by the developer’s response, the victim approach any forum that is appropriate. The quantum of claim determines the forum one has to approach.

If the claim is less than Rs 1 crore, the district consumer redressal forum would hear the plea. If the claim is more than Rs 1 crore but less than Rs 10 crore, the state consumer redressal forum would take it up. The final tier the National Disputes Redressal Commission would hear the plea if the claim is More than Rs 10 crore.

Lawyers said usually customers charge material cost, compensation, mental harassment, debt repayment they have to make for loans they might have incurred for booking the property as “claim”.

An interesting feature of the consumer courts are that one does not necessarily need a lawyer to represent him/her.

The complaint can even be submitted on plain paper by one’s own handwriting, said advocate Mukherjee. But the entire details of the complaint, details of deficiency need to be submitted to the court.

However, if that appears troublesome, one can also approach consumer grievance redressal forums which would guide a victim with such formalities. In fact, a number of consumers do enlist the services of lawyers since they are dealing with valuable property and the stakes are high.

First a customer has to appeal to the district-level forum. The case might move to the state-level forum and finally to the National Consumer Dispute Redressal Commission that is the apex body. The NCDRC can slap a fine on an errant developer but not send anyone to jail.

“Despite delaying tactics that developers adopt, consumer courts are still the fastest forum for redressal of grievance against errant developers,” said Snigdhendu Bhattacharya, a Kolkata-resident, who dragged a real estate promoter to the district forum in 2018 and now has the developer yielding to his terms out of the court.

A customer can also be guided by consumerhelpline.gov.in to get in touch with their respective state consumer disputes redressal forum.