developers are not worrying about criminal action by the flat owners

Q: Delhi has raised the red flag for developers and hope among property buyers.

Sunil Sharma, Noida

18th January 2016

Real estate News in Delhi

property buyers

mofa

delay possession of flats

arrest of builders in delhi

criminam action against builders in delhi

unitech case

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Replies (3)

Though, it will be consider as a great step against the builders for their violations. The fear of criminal action will help so many suffering buyers.

Sajal Das, Kolkata

18th January 2016

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It is only disappointment for the buyers to switch on to criminal provision. In Mumbai, where real estate rates rarely fall. It is very difficult for a buyer to again buy a flat in the same location at the same rate. Post-booking, rates usually shoot up at least 10-20%, rendering the 9% interest rate for refund provided in MOFA an unattractive option.

Sandeep Mhatre, Mumbai

18th January 2016

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Actually, most buyers want to get possession first, even without an occupancy certificate. Once in, they usually move a consumer or civil court, for deficiencies in promised amenities or other lapses, including failure to give conveyance. There are criminal complaints filed for MOFA violations, but in most cases, these usually get settled out of court

Puneet Laskar,

18th January 2016

In November 2015 Patna high court judgement that only delay in handing over possession without an accompanying dishonest intention would not amount to a criminal case of cheating or breach of trust. These are essentially civil disputes between a landowner and a builder regarding breach of agreement terms. That gave enough support to the builders while buyers got nothing except sucking their hard money.

bablu pathak,

18th January 2016

@Bablu Pathak,
While in Mumbai, though, builders are also fearless because litigation allows for multiple appeals that can reach out for years. At the same time, consumer courts can only pass orders for compensation or handing over a flat, not sending a builder to prison.

Sandeep Mhatre, Mumbai

18th January 2016

Yes, builders in Mumbai and other metros did not fear criminal action for any of their willing violations because being sent to jail was a rarity. Developers were not worried about criminal action in spite of penal provisions in Maharashtra Ownership Flats Act for violations or delay in handing over possession. A feeling of defense from legal action conquered among builders.

Brinda.S, Delhi

18th January 2016

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