Fall in line or face the music – Indian Courts to errant developers

What an exciting years it has been so far! Not that we are rejoicing the situation that home buyers are in right now but the winds of the change are welcoming and the credit goes to:

The NCDRC | The High Courts | The Supreme Court

Until a few years ago, there was little a homebuyer could do against the atrocities of the mighty and notorious real estate developers. First, it needed courage to even raise a voice against a real estate mafia, and even if someone managed to do so, he would be grilled by the unhurried Indian Judicial system. No that all developers are wrong but most developers in collusion with politicians had stretched it too far for the greed of easy money.

But not anymore, if not the Governments, the courts seems to have realized how enormous the real estate problem is. Favorable judgement and tightening noose against the errant developers is being rejoiced by the homebuyers across India. Let’s look at some of the headlines from recent times:

‘Sink Or Die’, Buyers Need To Be Paid Back: Supreme Court To Supertech

High Court asks Unitech to open special account, finish project

SC Comes Down Heavily On Parsvnath, Gives Ultimatum To DLF

Unitech faces galore of high court, consumer court cases against it

Unitech agrees to settle with home buyers in Noida project, tells SC it has offered alternate plots

How did this all change suddenly? 

Pro-consumer Courts

The Courts seems to have realized the magnitude of the problem and have started dealing with the menace. Until last year, most of the judgements passed by the NCDRC got stayed in Supreme Court and developers were taking advantage of the situation. Most developers were of the view that not much would change and they can continue to play with the system. Some of it was attributed to the slow judicial system and courts not taking a tough stand against the biggies of the real estate.

But, to their dismay, the Supreme Courts seems to have turned a nightmare for these errant developers. Recent orders against PACL, DLF, Unitech, Parshavnath etc are enough to send a strong message to errant developers.

Homebuyer’s activism

While there is no denial that courts are paying more attention to the homebuyers issues, most of these judgements reflect the change in attitude from the homebuyers. Until so far, only a few homebuyers could take their fight to a logical conclusion. Most litigation often resulted in either buyer unable to sustain the litigation or they opted for out of court settlements. However, with more and more homebuyers joining hands, it is becoming easy for them to devise a strategy and counter the developers. Orders in regard to higher delay penalty, refund with high interest, compensation for short construction & maintenance are working as a catalyst for the homebuyers.


It is advised that homebuyers stop being in denial mode about the wrongdoings of the developers and start raising their voice. There is only one way to deal with the menace and that is a joint legal action.

On the other hand, the developers must realize that the Era of loot is now over and sooner they realize, better it will be for their business. Beware, Indian Courts are watching!!!!

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