Should a house buyer be denied compensation by a builder for delay in delivery of the property, especially on the grounds that no such compensation is necessary since the valuation of property has gone up because of this delay? The National Consumer Commission replied to this question in the negative in a recent case and asked the builder to pay due compensation, apart from a hefty penalty for mistreating the house buyer.

This landmark judgment will go a long way in protecting the interests of numerous home buyers in the country, who are finally able to purchase a shelter of their own following the economic boom of the recent years. However, the consequential real estate boom gave birth to scores of unscrupulous builders, whose primary source of funding has been the advance booking amounts from unsuspecting buyers, and who invariably end up delaying delivery of houses — sometimes for years — due to a shortage of funds.

The government has taken little action against this practice, which has almost reached the proportions of a mini scam. A consumer education drive can be launched, encouraging the aggrieved buyers to book complaints against their errant builders. Most of the builders are purchasing additional land from the money which they receive from consumers for any project and then they delay the project. The government should come down heavily on such builders or real estate developers.

Speaking of Raj

Raj Thackeray’s campaign for renaming some famous Mumbai institutions is political activism at its juvenile worst. However, this is still a minor offence when compared to his provocative outbursts that encourage attacks against migrants — especially north Indians in Mumbai. His targets for physical assault are the poorest of people — who neither have a political voice nor any support.

... contd.