Success rate of consumer cases against builders

With the unethical practices of builders of under construction projects on the rise, its quite obvious that poor buyers/owners are resorting to legal remedies.

Of the possible options available among CCI, EOW, FIR, Civil case, Criminal case and Consumer case, Consumer case is definitely the most preferred choice owing to history of relatively swift judgments and minimal time investment.

It is true that Consumer cases do offer a light at the end of the tunnel.
But, it is equally essential to do the thorough ground work before approaching the consumer court.
If we look at the judgments from national consumer court, the story is not as merrier as it looks.

We list down the success rate of consumer cases against builders in Delhi NCR in National consumer court in last three years:

1) Noida – 1 out 10 consumer cases. Success rate = 10%
2) Gurgaon – 4 out of 15 consumer cases. Success rate = 27%
3) Ghaziabad– 1 out of 7 consumer cases. Success rate = 14%
4) Faridabad– 1 out of 5 consumer cases. Success rate = 20%

Please note the above statistics is only for consumer case judgments in National consumer court.
Between 60 to 70 cases from Delhi NCR against builders are still undergoing proceedings in the esteemed court.

Almost 50% of the above dismissed cases in favor of builder are pertaining to flats/houses bought for investment and not for end use. As discussed previously, such cases do not fit into consumer court purview and are generally rejected.
Rest of the dismissed cases are due to insufficient evidences or regular delay in payment by buyer much before the delay (or other concern) pops up.

The idea of this article is not to disappoint but to request buyers to be extremely well prepared with all evidences and verified profiles before taking the plunge, which you definitely should if you qualify.
Also, you would realize that on-boarding of an experienced, successful and respectable lawyer will be of paramount significance.
We will touch upon this in our next article.

Please note that it would have been difficult to have data facts for all 4 cities in a single article. Hence, to keep this article clutter free, we are keeping the same aside for future posts/articles. There, we will touch upon the details of builders and the successful cases against each city individually/separately.

Comments/Feedback invited.

Last updated: June 18, 2015 at 17:02 pm

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[…] higher than what is in Delhi NCR. From what we could see, the success rate is around 70% as against success rate of around 20% in Delhi NCR. This however correlates to the fact that number of real estate related consumer cases is also […]

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[…] People have bestowed high hopes on this option and rightly so since this is the relatively swiftest and the easiest way out to seek compensation for harassment and stress they have been through. However, there are certain things to keep in mind to ensure success as results overall are a little disturbing. […]

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