Consumers increasingly feeling disgruntled with real estate firms
The construction boom in and around city seems to be fizzling out, if the increasing number of complaints against real estate developers is anything to go by.chandigarh Updated: Oct 09, 2014 16:13 IST
The construction boom in and around city seems to be fizzling out, if the increasing number of complaints against real estate developers is anything to go by.
About 75 cases against various real estate developers have been decided by the consumer disputes redressal commission as well as two consumer forums in the past nine months.
As per the statistics, about 200 cases are filed in Chandigarh district consumer forum every month; 15% complaints filed pertain to disputes with real estate developers, which constituted about only 5% complaints last year.
Most of the complaints against the real estate companies are regarding failure to construct the flats as well as commercial spaces in the stipulated period or failure to give possession of the residential and commercial plots on time.
Advocate Amit Kumar, said, “Most complaints arise as housing firms do not meet buyers’ expectations of giving possession of flats or plots on time. People deposit hard-earned money, but when the companies do not fulfil their commitments, the buyers move consumer forum for redressal.”
“The recent increase in the complaints is mostly regarding the projects launched after 2006, cashing in on the realty boom in tricity. But in most cases, the projects did not have requisite permission in place, and owing to the escalation of prices of the raw material, most projects failed to take of f, thereby leaving consumers disgruntled,” said advocate Rajeev Duggal.
Pankaj Chandgothia, president, Consumer Courts Bar Association, Chandigarh, “Complaints against insurance companies continue to top the list of complaints filed before consumer courts. But this year, complaints against real estate developers are second replacing those against banks until last year. This is because the real estate developers were issued licenses in this area in 2006-2007 leading to launch of number of real estate projects in SAS Nagar and in periphery areas of tricity with promises to customers of handing over possession by 20102011. As the companies failed to deliver, customers started filing complaints for redressal.”