With a staggering number of cases pending at different Consumer Commissions, Rohit Kumar Singh, Secretary, Department of Consumer Affairs, GoI, has said that out of over 5.5 lakh cases currently awaiting resolution, more than 54,000 cases pertain to the housing sector. This backlog of cases highlights the importance of providing speedy justice and streamlining the process for homebuyers.

Singh called for implementing a simplified model buyer agreement to streamline the homebuying process and protect consumers from potential abuses. This, he said, could help reduce disputes between homebuyers and builders and ensure that consumers have access to effective, speedy, hassle-free, and inexpensive grievance redressal mechanisms.

He also highlighted the significance of the Consumer Protection Act 2019, which recognizes housing construction as a service and categorizes developers as product sellers.

“This recognition helps to ensure that homebuyers have access to the same consumer protections that they would receive when purchasing any other type of product or service,” he said.

Emphasising on the need for continued focus on housing sector in India, particularly protecting consumers and streamlining the homebuying process, Singh said implementing measures like model buyer agreements and effective grievance redressal mechanisms backlog of cases can be redressed and homebuyers treated fairly and protected from potential abuses.

He was speaking at a first-of-its-kind Round Table Conference on ‘How to Effectively Redress the Grievances Pertaining to Real Estate Sector’ organised by the Department of Consumer Affairs in association with the Government of Maharashtra in Mumbai Tuesday.

During the conference, attended by government officials, Chairman RERA, Delhi, Chairman MahaRERA, officials from MOHUA, IBBI, legal experts, industry leaders, and consumer rights activists, the following key problems were identified for the homebuyers:

* Delay in delivery of possession of property to homebuyers.
* No compensation for delay in possession to homebuyers.
* Biased, one-sided, and unfair builder-buyer agreements.
* Amenities not provided to homebuyers as per the agreement.
* Misleading advertisements by developers and influencers for luring homebuyers.
* Non-adherence to the model builder-buyer agreement proposed by RERA.

Key suggestions:

* Sending the draft agreement to buyers before execution.
* Clearly mentioning permissions and sanctions obtained from competent authorities on the first page of the agreement.
* Prohibiting builders from launching projects before obtaining all necessary permissions and sanctions.
Including an exit clause for homebuyers in all agreements, valid until the Occupancy Certificate (OC) or Completion Certificate (CC) is obtained and possession is offered by the builder.
* Including a schedule of additional charges beyond the cost of the unit/apartment in all agreements.
* Requiring all agreements to contain mandatory declarations regarding no dues from any authority/banks and all necessary legal sanctions and approvals from competent authorities.
* Taking strong action against unfair and misleading advertisements by developers and endorsers.
Forming a committee comprising members of the National Commission, various State Consumer Commissions, RERA, Department of Consumer Affairs, and IBBI to effectively deal with the issue.

The Department of Consumer Affairs will collaborate with other relevant authorities and organizations to ensure the effective implementation of the proposed measures, monitor their impact on the real estate sector and make necessary adjustments. It will maintain an open dialogue with stakeholders and the public, keeping them informed about progress in addressing real estate issues in consumer commissions and seeking their feedback for continuous improvement.