Property in India To Benefit From Trust Between Buyers and Sellers

It looks as thought property in India is changing for the better day by day as steps are taken to reduce greatly the trust deficit between buyers and builders. Recent activity has led builders who had shoddy reputations to be publically shamed while honest builders who had delivered quality projects on time have remained largely untouched and even stand to benefit by the scandalous which have been broadcast

The long arm of the law is coming out strongly against builders who have delivered delayed and shoddy houses, and while this is good news for consumers it is also good news for reliable builders who will become more likely to attract buyers in the long term.  Concerning the relationship between builders and buyers, it is likely to strengthen in the future as buyers become aware that only the most reliable builders shall be able to deliver homes in accordance with new rules and norms that have been created by the government. Residential property in India will likely experience a renaissance as buyers who had thus far been reluctant to invest in property due to a deficit of trust between them and builders shall seriously consider investing in a new house. Two examples of legal actions undertaken by the government are below

Non-Handover Of Flat

Many builders in India are renowned across the world and have little to fear from any government action as such builders diligently follow all norms stated by the government.  However builders in India who are less well reputed have in the past caused havoc for homebuyers who had nowhere to seek redressal. Therefore in the interest of consumers, a recent ruling by the consumer dispute redressal forum against a builder in Mumbai charged the builder with non-compliance for an order passed 9 years ago, the builder has been sentenced to a two-year jail term. The reason for the sentencing was that the builder had failed to give possession of the flat for two years despite being paid the sum in its entirety by a buyer. The builder had failed to give procession for years after being asked by the forum to do so and hence was eventually ordered to serve a prison sentence.  

Adherence to FSI Norms

Builders in India at Mumbai have at times been known to exceed FSI norms, which is a serious offence. When one such builder in Mumbai had undertaken the completion of a redevelopment project yet was unable to complete the project on time, he threatened residents of the redevelopment project with cancellation of the money paid to them needed to live in alternative accommodation while their old building was being redeveloped. The builder was also caught forcing residents to take ownership of units in the redevelopment project in spite of not having occupancy certificates. A case was filed against the builder and it is under hearing by concerned authorities.

Conclusion

The recently emergent pro consumer stance of the government with regards to properties in India, will lead to a positive sentiment among consumers in the future.