Housing consumers at receiving end

Builders appealing against forum’s orders

Chandigarh, August 3
Scores of consumers who managed to get relief from the district forum for a delay in possession of promised plots or apartments in colonies developed by real estate firms are still making the rounds of the commission’s office.
In order to have an excuse for delaying implementation of the forum order, the firms file appeals and revisions in the commission against the lower forum’s order, increasing the ordeal of consumers who have invested their lifetime savings to own a house.
If the consumer wins his case in the district forum, a real estate company files an appeal with the State Commission where, after revision before the national commission in New Delhi, would be the natural outcome. While the appeals are a formality and routine for real estate firms, it is the consumer who suffers because of the high expenses, both legal and that of travelling, as well as the inconvenience involved in defending an appeal.
The passage of time works to the advantage of the companies, as by this time their projects concerned get completed and then the matter has to be compromised in view of the changed circumstances. Thus the consumer becomes a victim of the delay in the process of law.
“As it is, it isn’t easy to win a case against big companies, as they have various kinds of saving and immunity clauses inbuilt in their elaborate agreements. Such clauses include those relating to place of jurisdiction and arbitration clauses, apart from one-sided arbitrary provisions, which the consumer has no choice but to sign”, points out Vishal Dewan, a corporate lawyer.
“The implementation of the orders is invariably stayed in appeal or revision by the National Commission while admitting the appeal. Thereafter, an admitted appeal takes almost three years to come up for final hearing before the National Commission”, said Pankaj Chandgothia, president of the Consumer Courts Bar Association.
An analysis of data since January 2011 reveals the major defaulters in the real estate category are Parsvnath (with over 24 cases being filed), Shalimar Estates (11 cases), Emaar MGF (14 cases), Silver City (8 cases), Unitech (5 cases). The Chandigarh Housing Board, Taneja Developers, PH Houses and Pearls Buildwell are also in the consumer dock.
“The builder in fact uses the consumer’s money to build his project as most of the installments are charged in advance and the commitment of delivery is always shrouded in vague language. When the money gets stuck, the hapless consumer often prefer not to enter into a legal battle for fear of losing his money entirely”, says Rakesh Gupta, a businessman, undergoing similar problems.
Recently a family residing in Sector 8, Chandigarh, won three cases at the District Forum, but the respondent - Silver City - appealed to the State Commission, where after revision before the National Commission will be the natural outcome. The family had booked three units way back in 2006-2007, with not much hope of getting them in sight in the near future.