Chandigarh: Plaints against builders top case list in consumer courts

Ramkrishan Upadhyay

Chandigarh, July 21

Complaints against builders top the list of the cases filed in consumer courts here. Two district commissions and one state consumer dispute redressal panel are functioning in city.

Delayed project delivery, misleading ads

Ajay Jagga, a city-based advocate, said complaints against builders often pertained to a range of issues, including delayed project delivery, substandard construction, misleading advertisements and the lack of transparency in transactions

According to the latest information, around 7,200 consumer cases have been filed in two district and one state consumer commissions in the past two years from January 1, 2022, to December 31, 2023.

Of the total cases, 2,391 (33 per cent) are related to the real estate sector topping the list, followed by the cases against insurance companies. A total of 821 cases were filed against the insurance companies in the past two years and 367 against banks. Fiftytwo cases were filed against the education sector, including coaching centres, and 55 against the medical sector.

The lawyers dealing with the consumer cases said the figures showed that the builders were not fulfilling their promises made to the consumers. They said there had been a notable development in Chandigarh and its nearby areas. People are investing their hard-earned money in real estate.

Ajay Jagga, an advocate, said complaints against builders often pertained to a range of issues, including delayed project delivery, substandard construction, misleading advertisements and the lack of transparency in transactions. Delayed delivery is the most frequent grievance, with many consumers facing extended waiting periods beyond the stipulated completion period. Substandard construction was another major issue where the structures failed to meet the promised standards, leading to additional costs and safety concerns.

Jagga said consumers were often lured by attractive offers and promises that are not kept by developers, resulting in a breach of trust. The complexity of real estate transactions, compounded by insufficient disclosure of terms and conditions, leaves many buyers feeling deceived and vulnerable.

Another advocate, Pankaj Chandgothia, said the Consumer Act 2019 Act had given enhanced protection to consumers it provided for more stringent action compared to the Erstwhile Act of 1986.

The 2019 Act gives additional power to the consumer court to declare a builder’s agreement as ‘unfair contracts’ and therefore not binding on the consumer. The agreement having such terms, which adversely affect the rights of such consumers and indulge in unfair trade practices, can be quashed by the State Commission. These cases can be directly filed to the commission.