Even though the Supreme Court on September 30 rejected the house owner’s plea for a stay on the demolition of four illegal apartment blocks built in violation of the Coastal Regulation Zone norms in Kochi’s Maradu, the court’s earlier order of September 27, directing the Kerala government to immediately award an interim compensation of ₹25 lakh to each of the flat owners , should bring relief to those whose apartments will be razed to the ground .
While directing payment of interim compensation , the Apex Court said the state government may recover this amount from the builders and promoters who built the apartment complexes in violation of the Coastal Regulation Zone norms. In fact the entire compensation package to the affected consumers, to be determined by a court-appointed committee, should come not just from the builders and promoters, but also from those who were supposed to prevent such encroachments, but instead allowed them in gross violation of the law-the local Panchayat in this case.
Unless and until those who permitted these constructions are identified and brought to book, such encroachments of the coastal zones will continue. In fact expressing anguish over the illegal structures that have come up in the coastal zone and their devastating effect on the environment, the Apex Court has said it would fix responsibility on those who allowed such unlawful constructions. One really looks forward to that.
Unfortunately, in cases such as these, the victims of the builders’ greed and the administration’s avarice and apathy, are the house owners, who would suddenly find themselves homeless. So it is absolutely necessary to protect them by incorporating in all future builder-consumer contracts, a clause holding the builder fully liable for any illegality in the construction. In case of demolition , the contract should ensure that the builder fully indemnifies the flat owners’ loss, finds them temporary accommodation till they find an alternate flat and also compensate them for the mental agony, distress and harassment caused. Such a clause, enforceable by the real estate regulator, should force builders to think more carefully before violating the laws of the land in general and environmental laws in particular.
{{/usCountry}}Unfortunately, in cases such as these, the victims of the builders’ greed and the administration’s avarice and apathy, are the house owners, who would suddenly find themselves homeless. So it is absolutely necessary to protect them by incorporating in all future builder-consumer contracts, a clause holding the builder fully liable for any illegality in the construction. In case of demolition , the contract should ensure that the builder fully indemnifies the flat owners’ loss, finds them temporary accommodation till they find an alternate flat and also compensate them for the mental agony, distress and harassment caused. Such a clause, enforceable by the real estate regulator, should force builders to think more carefully before violating the laws of the land in general and environmental laws in particular.
{{/usCountry}}For a long time, I have been advocating that the central government formulate a model standard contract between the builder and the flat buyer for all state governments to adopt and enforce. Even though the Real Estate (Regulation and Development) Act, Rules and Regulations do set norms to ensure a fair deal for buyers, it would be much better to go one step further and draft a standard contract that also incorporates a clause holding the builder fully liable for the consequences of any illegality committed by him.
This case should also make home buyers far more wary of investing in properties such as these, close to the coastal zone. Ignorance of law is not an excuse and they certainly need to make sure before putting their money into any housing scheme that the builder is not violating any law and putting their investment at risk. Nor should they fall for false assurances that the construction would soon be legalized. In fact it would be in the interest of consumers not to be part –either directly or indirectly- of any such illegal scheme of builders, particularly those that adversely impact the environment.
In a country where violations of coastal regulations are a norm rather than an exception, the Supreme Court’s order directing immediate demolition of apartments illegally built on the coastal zone of Kochi’s Maradu, should finally bring about the fear of law in those who have encroached on eco-fragile coastal zones with impunity, not just in Kerala, but in many other States. And one hopes that this would be the beginning of an end to all such illegal constructions.