Cheated by property developer? Legal tips for NRIs

Summary:

1. NRIs have property rights in India.
2. NRIs make a significant investment in real estate in India.
3. The physical absence of these NRIs encourages developers to do fraudulent deals with them.
4. Indian law has stringent recourse in case the developer commits fraud.
5. NRIs should be aware and alert about safeguarding themselves against developer fraud by verifying all the relevant documents, certifications, etc.

NRIs must be cautious while buying or investing in real estate projects as the property developers commit fraud/cheating in their absence. Property Developers take undue advantage of the absence of the NRIs; thus, it is always advised to check the project’s legal status. If the developers defraud NRIs, then an appropriate proceeding can be initiated against the property developers in an appropriate forum by the NRIs to safeguard their rights in India.

Property developers often cheat NRIs since they live overseas with limited ability to manage their properties in India. In the absence of the NRIs, the property developers take undue advantage and ultimately, the NRIs have to suffer a significant loss in terms of time and money. Moreover, the developers frequently follow various tactics to influence the NRIs to invest in their projects by assuring them that the property value will appreciate and they can have their dream homes well within time.

Legal Recourse In Case of Fraud Committed by the Developer

There are various reasons why the projects are delayed. There are financial irregularities at the end of the developers, and in turn, the NRIs have to suffer for these reasons. In case the NRIs are cheated by the developers, they can opt for legal recourse by approaching:

1. Real Estate Regulatory Authority- An aggrieved can file a complaint under section 31 of the RERA Act against the property developer where the matters are taken up at a better pace, and the complaint can only be filed concerning the projects which are registered under RERA. The authority must address the issue within 60 days of receiving the complaint.
2. Consumer Forum- The matter can be filed in Consumer Forum, where the court addresses the grievances related to service delivery. Depending upon the consideration paid by the NRI’s towards the property, the matter will be filed in the respective consumer forum either in District, State or National Commission. The limitation period to file the consumer complaint is two years from the date of the dispute.
3. Filing criminal Complaint- An aggrieved can also file a complaint against the real estate developer for cheating under the Indian Penal Code.
4. Out-of-court settlement- The buyer can also opt for an out-of-court settlement if the builder is ready for the same and vice versa. There can also be an option of Arbitration clause in the builder-buyer agreement upon which both the parties can rely.

If the builder has committed cheating, the NRIs can file a complaint through a power of attorney.

Tips For Safeguarding Against Unethical Practices.

1. The reputation of the builder- NRIs, while investing in property, should verify that particular developer’s reputation. One should not invest in the projects of unknown developers, exclusively in under-construction projects.
2. Verify the legal status of property- NRIs must verify the legal status of the property first concerning requisite permissions, which is a crucial factor.
3. RERA Certification- Another essential factor that one must consider is that for every under-construction project, it is mandatory to be certified under the (Real Estate Regulation and Development) Act, 2016. The credibility of the builder in the developing project and timely completion of the project should be significant.
4. Verify the property documents- It is crucial to verify the ownership documents of a property while investing money. The documents must adhere to all the applicable regulations of the building and should include proper grants/sanctions.

Conclusion:

Thus, the NRIs must be vigilant while investing in real estate projects and choose the projects cautiously. In addition, the projects should be duly registered and genuine for investment purposes. It also becomes essential to verify property documents because there have been numerous cases of fraud and cheating while buying real estate projects.