Dispute With Real Estate Developer
Non-resident Indians (NRIs) are one of the active buyers in the Indian property. Unfortunately, in India, the real estate sector remains largely unorganised and the fact that NRIs are usually not physically present for day to day updates gives some dubious real estate developers the leverage to exploit them and delay in possession of property unnecessarily. But, now as an NRI, you can quickly invest in Indian estate category without any fear.
The real estate market in India has matured of late, with some professionally managed established real estate developers working on large residential, agricultural and commercial properties.
Home buyers and property investors are in fear from unscrupulous and dishonest operators inside the business, and NRIs even more so, who have been victims of fraud in property matters for obvious reasons.
Efforts by State Governments and state judiciaries
They have to take up cases of NRIs in the Fast Track Courts as in Punjab, wherein property cases filed by overseas citizens are among the highest in the India. Land grabbing by using impersonation, fake deals, building scams is what an NRI property investor needs to be aware of before he signs on the dotted line.
In the case of delay in possession of property, an errant real estate developer often receives away lightly in spite of regular follow-up. He ends up paying only a 10 to 12% penalty on the amount he has obtained from the investor, which he makes up, in any case, citing inflationary costs of construction as the primary reason.
Real Estate Developers have tried to woo NRIs with false claims of initiatives, sponsored through fake videos and information. The National Real Estate Development Council (NAREDCO) has proposed rules on Property Management. This would result in transparency and ethical practices in the Indian real estate division.
A few precautions any NRI investor or Property buyer should exercise are recommended here:
The real estate developer’s track record
Track record of the developer is a function of various factors including:
- Projects that the developer has completed in the past.
- Whether these cases have been delivered as per agreed schedule.
- Whether the transfer of title in property case have been smooth.
- Type of customer service that the developer has provided.
- Litigation history if any.
- Quality orientation of the developer
An awareness of property matters and keeping these precautions in mind would help keep malpractices and disputes at bay.
To attract potential NRI buyers, real estate developers sometimes go so far as to make false promises. As a property buyer, if you feel you have been a victim of unfair practices of the real estate developer, there are some forums that you can approach for a redress of your grievance. Depending on the nature of the case and the gravity of the case, you can:
- File a civil suit in a civil court.
- File a complaint earlier than the consumer forum.
- An appeal before the Competition Commission of India.
- Approach regulatory forums.
- File a criminal case.