How to File a Complaint Against a Builder in India – A Step-by-Step Guide
Introduction
Builders and real estate developers often fail to meet their commitments, leading to grievances such as delayed possession, construction defects, non-fulfillment of agreements, hidden charges, or fraudulent practices. In India, buyers have multiple legal remedies to take action against errant builders.
This guide explains how to file a complaint against a builder, the legal provisions available, and the step-by-step process for seeking redressal.
Common Issues Faced by Homebuyers
Before filing a complaint, it is important to identify the nature of the grievance:
✔ Delayed possession – The builder fails to hand over the property within the stipulated time.
✔ Defective construction – Poor quality materials leading to cracks, leakages, and other structural defects.
✔ Non-compliance with agreements – Builder violates the terms mentioned in the builder-buyer agreement.
✔ Demand for additional/hidden charges – Charging extra amounts beyond the agreed cost.
✔ Denial of promised amenities – Not providing facilities as per the sales brochure or agreement.
✔ Fraudulent sale – Selling the same property to multiple buyers or misrepresentation of project details.
✔ Non-execution of sale deed – Failure to register the property in the buyer’s name despite full payment.
Legal Remedies Available to Homebuyers
There are multiple legal avenues to file a complaint against a builder in India, depending on the nature of the dispute:
- RERA (Real Estate Regulatory Authority) Complaint – For violations of the RERA Act, 2016.
- Consumer Forum (Consumer Protection Act, 2019) – If the issue involves deficiency in service.
- Civil Suit in Court – For breach of contract, compensation, or refund.
- Criminal Complaint – In cases of fraud, cheating, or misrepresentation.
How to File a Complaint Against a Builder?
The process varies based on the legal forum chosen. Below is the step-by-step process for different options:
1. Filing a Complaint Under RERA
RERA (Real Estate Regulatory Authority) was established under the Real Estate (Regulation and Development) Act, 2016, to protect homebuyers from unfair practices.
Who Can File a Complaint Under RERA?
✔ Homebuyers whose property is not delivered on time.
✔ Buyers who paid more than agreed without justification.
✔ Buyers whose property lacks promised amenities.
✔ Homebuyers affected by misrepresentation by builders.
Step-by-Step Process to File a Complaint in RERA
- Check if the project is registered under RERA – Visit the official state RERA website.
- Draft a Complaint – Include details like the builder’s name, project details, and nature of the grievance.
- Submit the Complaint – File it online through the state RERA portal or in person at the RERA office.
- Pay the Prescribed Fee – The fee varies from state to state.
- Hearing and Decision – The RERA authority will hear the case and pass an order.
Relief Available Under RERA
✔ Refund of the amount paid with interest.
✔ Compensation for delays and deficiencies.
✔ Order to complete and hand over possession.
✔ Imposition of penalties on the builder.
2. Filing a Complaint in Consumer Court (Consumer Protection Act, 2019)
If a builder fails to deliver the promised property, provides defective services, or indulges in unfair trade practices, a complaint can be filed under the Consumer Protection Act, 2019.
Who Can File a Consumer Complaint?
✔ Homebuyers who faced financial losses due to builder’s fault.
✔ Buyers suffering due to delayed possession.
✔ Those who have been charged hidden fees or overcharged.
Step-by-Step Process to File a Complaint in Consumer Court
- Send a Legal Notice to the Builder – Give them 15-30 days to respond.
- Prepare the Complaint – Include details like agreement copy, proof of payment, and correspondence with the builder.
- File the Complaint in the Appropriate Consumer Forum:
- District Consumer Forum – If the claim is up to ₹1 crore.
- State Commission – If the claim is between ₹1 crore and ₹10 crore.
- National Consumer Commission – If the claim exceeds ₹10 crore.
- Attach Required Documents – Agreement copy, payment receipts, and legal notice copy.
- Pay the Prescribed Fee – It depends on the claim amount.
- Hearing and Decision – The court will hear the case and provide relief.
Relief Available in Consumer Court
✔ Refund of payment with interest.
✔ Compensation for financial loss and mental agony.
✔ Penalty or punishment for fraudulent practices.
3. Filing a Civil Suit Against the Builder
A civil suit can be filed in a local civil court for the following remedies:
✔ Specific performance – If the builder refuses to execute the sale deed.
✔ Compensation for losses due to delay or poor-quality construction.
✔ Refund of money paid along with interest.
Step-by-Step Process to File a Civil Suit
- Consult a lawyer and prepare the suit.
- Draft a plaint mentioning the dispute, agreement details, and relief sought.
- File the suit in the appropriate civil court.
- Court issues summons to the builder.
- Trial and Judgment – Court decides the case and provides relief.
4. Filing a Criminal Complaint Against the Builder
If the builder is involved in fraud, misrepresentation, or cheating, a criminal complaint can be filed under:
✔ Section 420 IPC – Cheating and dishonestly inducing delivery of property.
✔ Section 406 IPC – Criminal breach of trust.
✔ Section 415 IPC – Fraudulent misrepresentation.
Steps to File a Criminal Complaint
- Draft a complaint with all details.
- File an FIR at the nearest police station.
- If police refuse to register FIR, file a private complaint in Magistrate Court (under Section 156(3) CrPC).
Relief Available in Criminal Cases
✔ Builder can be arrested and prosecuted.
✔ Court can order refund or compensation.
✔ Strict legal action can be taken against the builder.
Conclusion
Homebuyers have multiple legal remedies if a builder delays possession, provides poor-quality construction, or indulges in fraudulent practices. RERA, Consumer Forums, Civil and Criminal Courts, provide different options for seeking justice. Choosing the right forum depends on the nature of the complaint. Before taking legal action, sending a legal notice is advisable to attempt a resolution.
If the builder fails to comply even after a legal notice, buyers should take legal recourse and file a formal complaint. Consulting a real estate lawyer can help in choosing the best legal remedy and ensuring a strong case against the builder.
Important: Kindly Refer New Corresponding Sections of Bharatiya Nyaya Sanhita 2023, (BNS); Bharatiya Nagarik Suraksha Sanhita 2023, (BNSS); & Bharatiya Sakshya Adhiniyam 2023, (BSA) for IPC; CrPC & IEA used in the article.
Disclaimer: This information is intended for general guidance only and does not constitute legal advice. Please consult with a qualified lawyer for personalized advice specific to your situation.
Adcocate J.S. Rohilla (Civil & Criminal Lawyer in Indore)
Contact: 88271 22304