The Forum for Peoples' Collective Efforts (FPCE) has urged the Ministry of Consumer Affairs to introduce specific guidelines for the real estate sector under the Consumer Protection Act, 2019. In a letter to Consumer Affairs Secretary Nidhi Khare, FPCE highlighted that the Real Estate Regulatory Authority (RERA) has not fulfilled its objectives since becoming fully operational and emphasized the need to curb unfair practices by developers.

The FPCE demanded guidelines to prevent builders from making changes to ongoing projects after sales have begun. They also requested measures to ensure that flats are not handed over without fully completing amenities, including common areas, to habitable standards. Additionally, the group recommended limiting payments to 80% of the total value until all promised amenities are delivered to resident welfare associations.

The association stressed that homebuyers should receive a draft agreement at the time of booking to understand the contract terms. They also called for an exit clause to allow refunds if bookings are cancelled. Under their proposed terms, if a cancellation occurs within three months, the builder should refund the amount within 15 days; for cancellations after three months, refunds should be processed with interest within one month.

According to FPCE, around 50,000 real estate-related complaints are currently pending with consumer forums, representing 10% of total complaints under the Consumer Protection Act. The group argued that misleading advertisements remain a significant issue, with developers often showcasing projects that differ from what is ultimately delivered.

FPCE criticized developers for extending project deadlines at buyers' expense. The group insisted that information provided in brochures and websites should be treated as binding advertisements, rejecting disclaimers that exclude them from contractual obligations.

They also requested guidelines to cap additional charges imposed on homebuyers, requiring builders to provide proof of extra expenses due to buyer actions. Furthermore, FPCE demanded independent certification of carpet area by registered architects, ensuring that buyers are not charged for unapproved increases in area.

The letter called for developers to remain accountable for statutory charges to local authorities until the formal conveyance of flats to homebuyers is complete. The FPCE emphasized that failure to do so should result in compensation for homebuyers, reflecting the financial opportunity cost.

In their appeal, FPCE expressed concern over one-sided clauses in sale agreements, labelling them as oppressive and illegal. They reiterated the need for government intervention to protect consumers from unfair practices and ensure accountability in the real estate sector.

(Hindustan Times)