Track2Realty Exclusive: Cause of the dissatisfied home buyers may be legitimate, ways to get means may not be. Home buyers overt activism, often to the extent of blackmailing the builders, taking to the streets and media trial before even the case is filed in the court has not gone down well with the system. So much so that even Competition Commission of India (CCI) has become careful in its order to investigate the frivolous complaints against the developers.
Track2Realty wonders whether the disgruntled home buyers have given the Advantage-Home Buyers back to the developers due to My Way or Highway syndrome.
If the year 2011 has been the year of consumer activism, then 2012 will be noted as a year when overt consumer activism and often arm twisting by the buyers backfired on many occasions. The buyers’ dragging the developers to consumer courts is no new phenomenon, more often than not for the legitimate reasons.
However, the Competition Commission of India (CCI) slapping a hefty penalty of Rs. 630 crore in August 2011 following complaints of buyers in its project, Belaire in Gurgaon changed the dynamics of buyer-builder relationship and there has been a sudden spurt of consumers flocking to CCI and courts, often taking to streets against the developers.
Sitting on scores of consumer cases in various courts, the sector had thus far enjoyed the best of lax regulation and failed to bring consensus on the issue of transparency. Many of the clauses, including developers’ right on many issues, have been challenged in various courts and also upheld. Still those clauses are part of standard agreement. This, of course, led to consumers arm twisting the developers in case of conflict or even otherwise.
A study by Track2Realty finds real estate on the list of top 10 consumer complaints during the year 2012. What is noteworthy in the given study is the fact that delay in delivery or default in design or construction promises is not something that has creeped in recently.
However, the consumers are getting more discerning and vocal and hence Indian real estate has suddenly woken up to a new reality-consumer activism. Access to information and online networking seems to have added a zing to this new wave of consumer activism. Is the realty sector ready for this?
In November, 2012, residents of a housing society in Indirapuram lodged an FIR against the developer of the project for allegedly forcing into a power blackout for over 12 hours. The power distribution company had snapped power supply to around 250 families in the society for non-payment of dues by the developer. Supply was, however, restored next day with the intervention of the Ghaziabad Development Authority (GDA) after protests by residents.
…..to be continued
