Realtors step up vigil to deal with consumer activism

Developers have been modifying buyers' agreements to protect themselves. Deals now talk about longer delivery deadlines of up to 5 years from earlier 2-to-three years

Real estate player Supertech has started giving live feeds to its buyers on construction updates. Another firm, Raheja Developers, has added a clause in its buyers' agreement barring customers from posting derogatory comments about the company online. Yet another firm, Omaxe, has started an online appointment system, which allows customers to schedule their visits to the company's customer care office. These are some of the initiatives developers have taken to deal with rising consumer activism.

Everyone can access the Supertech site and see the construction going on live after clicking on their specific projects, the company's chairman and managing director R K Arora told Business Standard. Even progress reports and pictures are regularly updated on the site. Currently, live streaming is available in a few projects and will be expanded to all in some time.

A Raheja spokesperson confirmed the company had modified its agreement with buyers. "The clause doesn't stop people from sharing their problems or issues; it only asks them not to use defamatory, insulting, offensive language or material by words spoken or intended to be read that is defamatory concerning the project or the company."

It has also set up a 'grievance redressal committee' comprising the heads of customer relations, legal and booking control departments. The committee will meet all customers on a monthly basis to give on-the-spot resolution to their problems or concerns.

In recent times, developers have been modifying buyers' agreements to protect themselves. The agreements now talk about longer delivery deadlines of up to five years from the earlier two-to-three years. The changed agreements also include revised penalty norms against failure to deliver on time, aimed mainly at instilling confidence in buyers, experts said.

DLF and Supertech have been at the receiving end as buyers of one of their projects protested against the way the construction was being done, flouting the rules.

On Wednesday, the Supreme Court asked the country's largest player DLF to deposit Rs 630 crore, pending the outcome of a final order. The Competition Commission of India (CCI) had imposed a penalty of Rs 630 crore on DLF on a petition by buyers of one of its projects in Gurgaon, alleging unfair trade practices. DLF had moved the apex court against the CCI order.

The Allahabad High Court had recently ordered demolition of two towers in Supertech's Emerald Court in Noida on a petition by buyers alleging violation of building norms. Supertech has challenged the order in the Supreme Court.

These are not the only cases against developers. There are many such cases pending before the courts and CCI, which will come up for hearing in the coming months. The rising activism of aggrieved buyers across various mediums, including online, against the developers are mainly on issues related to delay in delivery, quality of construction, irregularities in project implementation, and departure from promised amenities.

The increase in such cases is also being attributed to the absence of a regulator for the sector.