Homebuyers can file complaints against builders with CCI

By AT Delhi Bureau
CCI has received several complaints against builders for unfair trade practices post DLF verdict

NEW DELHI: After the verdict of CCI imposing Rs.630crore on the biggest real estate company DLF, several home buyers approaching to CCI with their grievances that, builders are cheating them.
The Competition Commission of India (CCI) has received several complaints against the real estate companies for practicing unfair trade, senior officials said. We have received approx 10 complaints in the last month against the real estate companies, sources said. Pertaining to these complaints CCI will soon conduct a meeting to consider if the complaints are to be dealt with individually or collectively as a sector on the whole.
As per the competition Act 2002, home buyers can file complaints against builders with the CCI under section 3 and 4, pertaining to abuse of dominant market position and anti-competitive agreements, respectively.
However, CCI has charged fine at the rate of 7percent of the average of the turnover for the last three years on real estate giant DLF Ltd. The amount of Rs.630 crore has been imposed for the irregularities in business, bias business deeds and inequitable conditions made before the home buyers in Gurgaon.

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4 thoughts on “Homebuyers can file complaints against builders with CCI

  1. It is stated in the news article above that upon complaining by the buyers to the CCI against the builders DLF, the CCI charged fine at the rate of 7percent of the average of the turnover for the last three years on real estate giant DLF Ltd. What do the buyers got? Why that has not been declared? The penalty imposed for Rs.630 crore went in whose pockets? Why the buyers should complain CCI with their grievances that the builders are cheating them if they do not get any financial compensation? Are the buyers agents of CCI that they should lodge complain and CCI will earn the penalty money? CCI is another Dept. for collection of revenue from the builders with keeping the buyers simply gazing at them for nothing.

    Dilip Shah

    Senior Counselors and Analysts for Redevelopment of Housing Societies

  2. To,
    Shri. Rohtash Goel
    Managing Director,
    Omaxe Ltd,
    New Delhi- 49
    Dear Sir,
    Subject: Booking of 2 BHK Flat No: 102, EMPIRE TOWER NORTH AVENUE , BAHADURGARH*** REF: CLIENT ID: BHF/536
    I had applied for a 2 BHK Apartment in your upcoming project at Bahadurgarh on 2nd April 2006 along with a payment of Rs.453750/= paid vide cheque of ICICI Bank subsequently I was issued a letter no. & date nil of your provisional Allotment vide receipt no: 1300536. Accordingly as per your construction linked payment till 20th August 2008 we paid a sum of Rs.1915250/= which is 75% of value of Flat as per your demand.
    Since 2008 onwards we have been visiting your office and pursuing progress of our allotted flat. I regret to say that in spite of my several visits and letters I have never been able to understand/ know the actual state of construction. In fact during 2008- 2011(4 years) no construction or progress for delivery of our flat was informed & always vague & conflicting information was given in piecemeal.
    Now in the above reference, I have received email dated   19 April, 2012, from your customer care department which is in reply to my several letters & mails. In fact I am shocked to receive such a irrelevant mail and am astonished to note the contents thereof.
    Your aforesaid mail under reply is based on misleading & wrong facts, which have been written with a mala-fied intention to wrongly project & harass that the lady allot tee from a small town is in default and in non performance. It is pertinent to mention here that you had invited applications for allotment of flats in your group housing project (Omaxe Heights – North Avenue Bahadurgarh)   in the year 2006 and I had applied for the allotment of a flat on your assurances that the allotment shall be made in my favour within three (3) months and accordingly paid Rs.453750/= vide cheque no. 946021 and 946022 dated 2nd April 2006 and 10th April, 2006 both drawn on as booking amount. It was promised by your Company at the time of making the payment of booking amount for the Flat that the possession of the fully constructed flat would be handed over within 30 months from the date of allotment of the flat.
    But, after making the payment of aforesaid booking amount I did not get any information for the allotment of the flat booked by me, since long, in spite of my several visits and queries to you. Finally after a long interval, I was intimated by your letter undated in 2008 for the allotment of a 2BHK flat bearing no.102 at First Floor in Empire Tower in your project Omaxe North Avenue , Bahadurgarh in my favour.
    Thereafter you started raising demand notes as per your construction linked plan and I have made the payments accordingly. Save and except collecting payments, you did not pay any heed to your obligations ever since the inception. So much so the Agreement as promised by you under the letter of allotment dated nil to deliver shortly was never sent to me.
    Now at this stage you are raising this plea in your mail dated 19th April, 2012 (Hard Copy enclosed) that since there is no formal agreement between the parties your liability to deliver the booked flat on time and to compensate for the same comes to an end. Having made the payment of Rs.1915250/= this plea on this stage after a lapse of 6 years is not only shocking but also not maintainable under the law and smacks malafide intentions.  Signing of the Agreement, did not prevent your company from raising demand of payment and till August 2008 a sum of Rs.1915250/= had already been paid to and collected by you. If the liabilities to be discharged by you under the agreement in question are not maintainable due to agreement not signed by the parties as alleged by you then how the demand notes could have been raised for the aforesaid flat by you. Not only this, if the terms of the agreement for the  aforesaid flat is not maintanable due to not signed by the parties as you alleged then how the forefieture notice dated 13th October, 2011 without considering your default to deliver on time is maintainable. It is pertinent to mention here that the allotment of the aforesaid flat can not be considered as the allotment of a single unit but this allotment is under a group housing scheme and if the demand notes are raised as per the construction in gross in towers/project then the dates of delivery of the flats can not differ from other adjacent allot tees of the same tower in the same project.
    The true fact is that I kept on making timely payment of the subsequent installments as and when a demand was raised.  However, at the project site, the progress of the work was stopped and dismally slows.  I made several visits and enquiries with your office and the project site to enquire about the reasons for the slow progress, which were never attended too seriously for your own problem and limitation and only evasive and misleading replies and false assurances were given at all the times. In fact you r office gave several dates of possession which were never adhered & are still not being adhered. So much so that your office even failed and neglected to deliver the agreement to be executed for the allotment of the aforesaid flat. On the contrary, the forfeiture notice dated 13th October, 2011 issued by you stating that timely payment of installment is the essence of the contract. While we deny the same completely and specifically, it is emphasized that the actually timely completion of the project was the essence of the contract agreed at the time of making payment of booking amount for the aforesaid flat.  It is worth mentioning here that as against the agreed period of 30 months, you have failed to deliver the possession of the flat even till date i.e. after nearly six years of making booking amount of Rs.453750/= for the allotment of the aforesaid Flat. This fact of delay was admitted by you at the time of telecasting the programmed of CNBC AWAZ on 30th June 2011 & earlier and you also promised at that occasion to compensate for the same but later on you resiled from your words and sent wrong illegal, arbitrary demand note with interest.  This proves beyond doubt that your sole aim is to collect payment without discharging your liabilities and duties.
    It is significant to state that we had booked the flat with full enthusiasm and expectation that on expiry of the period of 30 months, we shall have fully constructed flat at our disposal and our family needs would be satisfied immediately. Keeping that in view, we earnestly paid installment towards purchase price of the flat in timely manner. Admittedly an amount aggregating of nearly Rs.1915250/= which is equivalent to almost 75% of the full value of the Flat including one car parking (i.e. Rs.2644462/=), stand paid till date. It was/is not our intention to delay the payments; however, our obligation to make payment was linked with your obligation to achieve progress in a manner so as to achieve full completion within a period of 30 months. I cannot be expected to keep making payment without reciprocity at your end. It is, therefore, an abuse of the contractual understanding between the parties, for arriving at wrongful gain to yourself and causing wrongful loss to me including other buyers of the aforesaid project. The impact of your negligence is all the more high because I am an old lady investor from a small town with aspiration of a house in NCR.
    In such circumstances, the interest charged by you without considering a long delay to deliver the aforesaid flat from your part which has caused immense losses to me has no basis, either in fact or in law. On the contrary, you are in default of your contractual obligations and are liable for all the compensation/damages as are being constantly incurred by us in terms of heavy burden of interest amount paid to you and loss due to rent liability implicated on me and we would not allow you to take undue advantage of the situation merely because you are the builder and also the drafter of the lopsided Contract which has been sent by you to me few days back. MY SEVERAL VISITS TO YOUR OFFICE & BEST EFFORT FOR A AMICABLE FAIR & JUST SETTLEMENT HAVE BEEN MISCONSTRUED TO EXPLOIT & TORCHER ME.
    It is therefore requested in your interest that issue me a fresh demand note deducting the interests levied by you and also compensate me for the losses caused to me due to non delivery and non performance of explicit contractual obligation of a non delivery of the aforesaid of flat in 30 months on schedule time otherwise I shall have no option other than to seek appropriate remedy under the law for the protection of my rights and you shall be liable for all the risks, consequences and costs thereof.
    Thank You,
    Yours Truly
    Kum Kum Singhal
    Mobile No: +919837176043
    E- Mail:midlandb2b@gmail.com

  3. We need help in case of our builder. who supposed to hand over flat in december 2009 and till date has done 30% job. He is demnading payments unduely and as per his will. when we saw that he is just trying to make money by not delivering and delaying project we stopped paying him after 50% payment. Now he is asking for 24% interest by showing fake plans and when we asked for our late possession payment that he is saying he will not. Builder is KST INFRA STRUCTURE with project whispering height at Faridabad. We want to teach him a lesson for fraud deals.

  4. Truly said by Bimal, posession date mentioned on recores was October 2010 howevr till now the project is not even 50% complete. Please feel free to contact me (9999-399-755).

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