Builder giving hard time? Go to consumer forum

Rakesh Bhatnagar l New Delhi

All those who have been waiting for years to get possession of their flats or are unhappy with the construction work can now move the consumer protection forum against builders. The forum has been empowered to take cognisance of any deficiency in service by a builder. The builder will now have to ensure that ownership documents are registered in the flat owner’s name. Terming a builder “service provider” and an applicant for a flat under construction “consumer”, the Supreme Court on Friday gave buyers the power to move the forum against the builder. If a builder uses substandard material or makes false or misleading comments about the condition of the flat, it would “amount to denial of facility or benefit of which a consumer is entitled to claim compensation under the Consumer Protection Act”, a bench of justices TS Thakur and Gyan Sudha Misra ruled. Dismissing an appeal filed by a group of contractors saying construction business cannot be termed “service” and a buyer cannot be called “consumer”, the court said when a builder undertakes to construct a house/flat, he has to “perform his obligation as agreed upon”. “A flat with a leaking roof or walls with cracks is denial of service.”

Source:: DNA, 14-05-2012, p.01: http://epaper.dnaindia.com/