Real Estate Complaint : Failure to appear in proceedings, is admission of the allegations

Recently, the Consumer Court in Ernakulam gave an interesting order in a real estate complaint wherein the builder failed to appear in court proceedings even after acknowledging the Legal Notice.

Trusting the false assurances given by the builder M/s Holy Faith Builders & Developers Pvt Ltd. regarding the legality and approvals for construction, retired Indian Navy Captain K.K. Nair and his wife purchased a flat in Holy Faith H20 complex in Kochi. However later the couple were shocked to discover that the construction of the apartment violated legal norms, due to which the entire building was demolished as per the Supreme Court’s order. This real estate complaint caused huge financial losses and inconvenience to the complainants.

Being cheated by the builder, the couple filed a consumer complaint against the builder and the bank in Ernakulam Consumer Court under Section 35 of the Consumer Protection Act 2019. After the case was filed, the dispute between the complainants and the bank was amicably resolved, but the builder completely ignored the court proceedings and did not appear before the Court to contest the claims even after acknowledging the legal notice.

The court observed that as the builder failed to appear in the case to challenge and contest the complainants claims so they were considered valid. The Court found that the construction of the apartment was in violation of the law which amounts to deficiency in service and unfair trade practices. Finally, the Ernakulam Consumer Court delivered a judgment in the favor of complainants, directing the builder to refund the money and pay compensation to the complainants for mental trauma. The court also directed the builder to cover the cost of litigation for filing this real estate complaint. Additionally, if the payment was not made within the stipulated time, interest would be levied until its realization.

If you have a real estate complaint, you can file a complaint at Voxya.com. Our legal experts will help you in getting resolution.