Consumer Complaint Against Real-estate Builders

How to File a Complaint in Consumer Court against Real Estate Builders?

Online Legal India LogoBy Online Legal India Published On 16 Jun 2022 Updated On 04 Jan 2025 Category Consumer Complaint

The land of the earth is limited and people want to reside in a place where they get good communication in all respects. The commercial buildings are also built in a place where people can easily enter and get everything at a place. So, in this limited land, people want to prepare high-rise buildings today and real estate is the main way to meet this requirement. When anything goes to a high demand, corruption and alteration happen to those places. So, real estate-related consumer harassment is quite higher in the Indian consumer court. This article will tell you how to file a complaint in consumer court against real estate builders.

Before going to discuss the matter of how to file a consumer complaint against real estate builders, let’s learn the common complaints that consumers raise against real estate builders.

Common Corruptions of Real Estate Builders

  1. Delayed possession permit

The developer or builder may delay finishing the property and hand over it to the agent or landlord. Hence, the landlord or the agents who are associated with the process can raise a complaint against the developer.

  1. Poor quality construction

The real estate company, agent, or landlord- whoever owns the right can investigate whether the real estate property is prepared with the right material that they promised. If they use the wrong or low-quality material, you can file a complaint.

  1. Unreasonable maintenance costs

If the builder charges a huge amount for maintenance which is unrealistic, you can file a complaint.

  1. Unresolved claims

During or after construction, you may not get the expected development that was promised. You may have some unresolved claims against the developer or builder. Then, you can raise a complaint in the consumer court.

  1. Refusal to Disclose Cost Plan

A builder is bound to disclose the cost plan of a real estate project. If they do not disclose, they may use low-quality material in any place the name of the total project cost is high. So, cost mapping is mandatory. If they do not disclose raise a consumer complaint.

  1. False advertisement

If you are misled by the advertisement and the promised quality or services are not available with the building, you can raise a consumer complaint against the builders, developers, promoters, or endorsers.

  1. Advance Payment

If the builder asks you for more than 10% of the total cost of the property as the advanced payment, you can file a consumer complaint against them.

  • Unregistered Project

If any builder has sold any unregistered or unauthorized project, you can file a complaint against them to the respective consumer court or RERA (Real Estate Regulatory Authority).

What is RERA?

RERA is an authorized body that regulates the rules and implements them for the development projects of whoever ever building them. So, builders, promotors, developers, or real estate agents must follow the rules. Violation of the rules may lead to penalties and confinement.  

What is a Consumer Court?

Consumer court is the Quasi-Judicial system where consumers of all kinds get treated with care and relief from disputes that happened after buying anything or having any service.

Consumer Courts Are Three Types:

  • The District Consumer Disputes Redressal Commission (DCDRC),
  • State Consumer Disputes Redressal Commission (SCDRC)
  • National Consumer Disputes Redressal Commission (NCDRC)

Some short discussion about the consumer courts:

Learn short details of the consumer court so that you can flawlessly apply for the judgment for the disputant project.

  • The District Consumer Disputes Redressal Commission (DCDRC)

This consumer court is under the state government and a great quasi-judicial system. When the dispute amount is under ?1 crore, you can raise a complaint to DCDRC consumer court. Here you will get the judgment according to the dispute and behavior of the disputant. Later you will learn how to file a complaint in consumer court against real estate builders or developers.

  • State Consumer Disputes Redressal Commission (SCDRC)

This consumer court is dedicated to providing solutions for clients who have a dispute amount of more than ?1 crore but less than ?10 crore. Any type of consumer harassment, including real estate disputes, can be solved here.

  • National Consumer Disputes Redressal Commission (NCDRC)

When it comes to ?10 crore or more dispute amount of a real estate consumer, the National Consumer Disputes Redressal Commission will judge the issue. So, keep in mind the disputed amount of all courts. Even if you or the builder consider that the judgment is not perfect, they can raise the case to the Supreme Court of India, the last point to get the judgment.

You have understood that to fight these levels, you have to take the support of a lawyer who has the knowledge to deal with all these cases. Starting from the legal notice to the fighting of cases, you require a qualified advocate. You can contact Online Legal India to get support.

Process to File a Complaint in Consumer Court against Real Estate Builders

Filing a complaint in the consumer court against any seller or service provider involves a legal procedure. So, in any property transaction fraud, delays in the handover of the property or any kind of fraudulent activities mentioned before may lead to a complaint in court. Here is the step-by-step process about how to file a complaint in consumer court against real estate builders.

Determine the Nature of the Complaint

Assessing whether your issue qualifies the consumer complaint forum under the Consumer Protection Act 2019. If it falls under the Consumer Protection Act, you can proceed with filing the complaint. To assess the nature of the complaint, you need to consult with a lawyer so that they can lead you in all directions on where to move and what to do. After all, they know the law well and will guide you however they need to do. So, determine the nature of the complaint and provide the necessary section of the Consumer Protection Act, 2019.

Send a Legal Notice at the Very Beginning

If the builder reduces the construction quality and you have noticed cracks in walls, leaking roofs, improper plumbing, or they have breached construction terms and conditions, such as adhering to the terms in the sale statement, you can file a complaint. They may be misled by the advertisement through any media and fail to provide legal documents as well. But at the very beginning, you have to send a legal notice to the builder or the developer to inform them about the concern.

In Indian law, you have to send one legal notice with the help of an established advocate. The claimant can demand the resolution out of court. If the opposition party or the builder does not respond or provide any solution or satisfactory solution, the claimant can go to the specific consumer court according to the dispute amount mentioned before.

Contact the Builder for Resolution

Before heading to the consumer court, the consumer must contact them over the phone and even meet physically to resolve the issue. This can be done through:

Requesting a discussion of the matter of dispute. If the builder does not respond properly or has no response, you can go for a resolution from the consumer court.

Gather All Necessary Documents and Evidence

You have to collect all the communicational details, advertisement copy or any document that proves your demands. If you cannot prove that your claim is valid, you will not get any use in complaining to the consumer court.

So you have to collect:

  • Sales deed
  • Seller buyer agreement
  • Receipt of payment
  • Brochure or handbill published by the company or buyer
  • Photographs and videos in support of the material dispute and misleading property
  • Communicational records through text, email, and letters- if there are any
  • Possession record or delayed possession notice- wherever applicable

Draft a Complaint by a Lawyer

After collecting proper documents against your proof of complaint, you have to prepare a complaint by a lawyer. A lawyer can determine how to form a complaint against the builder.

On the complaint, the advocate will create a format where the complainant and opposition party details will be mentioned.

The complainants’ details will contain

  • The complainant's name, address, and contact details
  • Name of the advocate
  • Builders’ details will contain the name, Real Estate Company, address, etc.

The clear description of the complaint where you have to put down the details of the issue, the timeline for a solution, details of notice, how it has impacted your finances, mental stability social reputation, etc.

Along with the complaint, you have to mention the remedy or compensation caused for the mental agony and other social impacts caused by it. Repair of defects miscommunication or anything related to the complaint must be addressed with compensation.

Ensure that the complaint is concise and includes all supporting evidence.

File The Consumer Court Appropriate For It

You have learned the details of the consumer court and the details when you have to apply to all three consumer courts. The disputed amount matters most.

Steps to File a Complaint

  • Frame a complaint with the help of an advocate and submit it to the specific court.
  • During submission, you have to submit proper documents for the proof of your claims.
  • Collect the acknowledgment receipt and learn the hearing date.
  • Pay for the filing charge based on the disputed amount.

Attend Hearings

With sufficient proof, you have to be ready in court with your appointed advocate. During the hearing, both parties need to be present (you and the builder). Don’t forget to carry the required documents for the evidence.

Receive the Judgment

According to the dispute, degree of faults, and the loss caused by the builder, you will get the judgment. If the judge feels that there is no dispute on the part of the builder, the judgment may not go in your favor. If you can prove your document and you have suffered a lot, you will get the judgment in your favor. Collect the judgment copy and get solved.

As per the dispute, the judgment will be declared, and you may get the disputed amount, repair, or other compensations with or without a litigation fee.

Tips for Success in Filing a Complaint

  • Be loyal, trustworthy, organized, and with evidence
  • Keep copies of communicational details that are proof of the disagreement of the builder
  • Follow up the case whenever you have the date
  • Track the progress of the case and fight every turn the case takes

Always consider seeking legal advice regarding the current turn of the case and its way of getting rid of it. The builder may follow different tricks as well to defend you. So, you must be ready to defend them.

The entire process of the consumer court is designed to reestablish the consumer right that the sellers, companies, or service providers are prone to demolish for their main interest. So, to get the resolution of your real estate issues against the builder, file a complaint in a consumer court against real estate builders and experience the power of the Consumer Protection Act 2019. Contact Online Legal India to learn more.


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