Thursday 15 February 2018

FRWA INNOCENT BUYERS BEING HARASSE BY BUILDERS

KULDEEP KUMAR KOHLI
PRESIDENT
FEDERATION OF RESIDENTS WELFARE ASSOCIATION
08860332402
FORFORWA@GMAIL.COM 


   




Let us fight for our right


On a mission to file 3 Lakh cases before Rera/NCDRC 
to Help innocent owners


Dear Friends and Supporters and cheated home Buyers,

These very notorious and influential builders when confronted by we honest home buyers and the noise that we now create for the inordinate delay in getting our flats, having paid most of amount, will have to bow before us. We all will go all out legally duly supported by our team of lawyers with bare minimal expenses as we all want to get justice for the truth.

Also, it is high time that we all who have been cheated get personally involved in eliminating this cheating cancer spread by several cheat builders ruining 3,00,000 families. While the cheating certainly is more pronounced in Haryana/NCR, several other states are also affected making it an India issue.

Through our revered Supreme Court, High Courts, NCDRC and the law is doing its best but time for every individual to start fighting for his right and eliminate such cheating. If many builders have to wind up, so be it after auctioning off everything to pay back home buyers besides life time imprisonment. I look up to you all to kindly learn to fight for your rights and I will support you till the end ensuring you get justice. 

The legal rights of the buyers are increasingly getting recognised and grievances are being addressed and they should exercise their legal rights and seek fair just compensation from the builders in case of delayed projects.

The judiciary has started going beyond the technicalities of the agreements and awarding compensation to buyers. In ALL THE cases recently, judges have rejected one-sided agreements, citing them as unfair trade practices.
Earlier, whatever was written in the builder-buyer agreement was held sacrosanct BUT NOT NOW.

One thing is very clear now that buyers can certainly take recourse to law against unscrupulous builders and seek just compensation in case of delay in offering possession of flats.

Consumers should not be deterred by one-sided agreement favouring builders, nor should they be deterred by superior financial position of the builder as the law is with the common man. Consumer Courts and Apex Court have come to the rescue of hapless buyers against the builders in cases of delayed project
In most of the cases delay in delivery varies from a minimum of one year to five years and in some cases, even more.

In a recent case, the National Consumer Disputes Redressal Commission (NCDRC) asked a real estate major to pay buyers compensation at the rate of 12 per cent a year for delay in delivery of flats, overruling the builder-buyer agreement that had set the rate at a mere 1.8 per cent a year. NCDRC said any unfair trade practice can be challenged by it, even if there is a prior agreement between the parties. The best part is that if the apex consumer court, NCDRC, passes such an order, it's binding on the lower courts.

After the buyers dragged DLF to the Competition Commission of India (CCI), things have changed. CCI found the builder the dominant party in the agreement, so, the terms and conditions of the agreement were not held as sacrosanct. Consumer courts started using this line of thought and applied it more widely in builder-buyer cases.

In a landmark ruling, the National Consumer Disputes Redressal Commission (NCDRC) asked real estate major Unitech to pay buyers compensation at the rate of 12% per annum for delay in delivery of flats, overruling the builder-buyer agreement that had set the rate at 1.8% per annum.

The order came in a case filed by 24 buyers of a housing project, Vistas, in Sector 70 of Gurgaon. The buyers alleged that they had booked the flats in 2009-10 and delivery was promised in 36 months.

In his order, Justice V K Jain directed the company to pay compensation at the rate of 12% per annum on the amount paid for the period from the date of delivery originally promised to the new date.

The NCDRC also ruled that any delay beyond the new deadline promised would draw a compensation of 18% per annum. Hence the sooner we get the deadline fixed by the Honourable NCDRC, the sooner the interest rate to be paid to us would go to 18%.

In order to ensure that the opposite parties honour the revised date of delivery of possession, compensation in the form of interest at a rate higher than 12% per annum should be paid by the developer if the revised date of delivery of possession is not honoured is what has been ruled by the Honourable NCDRC.

Landmark judgement

This situation would have continued in India but for the landmark judgement of National Consumer Dispute Redressal Commission, New Delhi in the case of Satish Kumar Pandey Vs. Unitech Ltd. delivered on 6th June, 2015. The National Commission minutely scrutinised the clauses of Builder-Buyer agreement in the above case and held that a term of above nature in Builder-Buyer agreement is wholly one sided, unfair and unreasonable. National Commission also held that such a practice constitutes unfair trade practice under the Consumer Protection Act, 1986.

The National Commission held in the said case that builder charges compound interest @18 per cent per annum in the event of the delay on the part of the buyer in making payment to the builder but seeks to pay less than 3 per cent per annum of the capital investment is nothing but it is unfair trade practice within the meaning Section 2 (r) of the Consumer Protection Act, 1986 as Builder adopts unfair methods or practice for the purpose of selling the products. National Commission in the said case awarded compensation at rate of 12 per cent per annum for period of delay in offer of possession from the schedule date.

The commission awarded 12 per cent of interest on the ground that the cost of borrowing for individual home buyers is about 11.5 per cent and thus, it would take care of the additional financial burden on the individual home buyers on account of delay in handing over the possession of the flat purchased by them.

The commission also directed that if a builder fails to deliver possession by the last date stipulated in extended period, thereafter, it would be pay interest at the rate of 18 per cent.

The National Commission has recently passed similar order in series of cases namely Santosh Johari and Others Vs. Unitech Ltd, Satinder Pal Singh Bawa Vs. Sahara India Commercial Co. Ltd., and Sahara Grace Consumer Grievance Association Vs. Sahara India Commercial Co. Ltd. and Others, Jivitesh Nayal & ANR Vs M/s Emaar MFG Land Limited & ANR, Chhavi Mohna Bhutani & ANR Vs M/s Emaar MFG Land Limited, Rahul Kumar Vs M/s Emaar MGF Land Limited, Rohit Sahai & ANR Vs M/s Emaar MGF Land Limited, Sangeeta Sharma Vs M/s Emaar MGF Land Limited, Kumar Rishabh & ANR Vs Emaar MGF Land Limited, Rohan Sharma & ANR Vs Emaar MGF Land Limited, Kumar Vaibhav & ANR Vs Emaar MGF Land Limited, Rajan Datta Vs Emaar MGF Land Limited, Shaloo Srikrishna & ANR Vs Emaar MGF Land Limited, Salil Mohan Gupte & ANR Vs Emaar MGF Land Limited.

Even the Supreme Court in the case of Dr. Amita Dhanda and others Vs. Emrald Court Owner Resident Welfare Association on 30.7.2014 ordered the builder to pay the entire principal amount along with 14 per cent compounded annually in a case where the High Court has directed the authorities to demolish the tower constructed in violation of law.

Warm Regards

For FEDERATION OF RESIDENTS WELFARE ASSOCIATION


KULDEEP KUMAR KOHLI
PRESIDENT


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