Molly Bhattacharya, 48, a housewife, booked a 1,200-square feet apartment in Calcutta’s Phoolbagan area for Rs 2.75 lakh in January 2008. The building remains incomplete and its promoter Ashok Majhi, is at large. The Bhattacharyas are now headed to the consumer court to try and recover their booking amount.

Five years ago, businessman Abhay Upadhyay booked a house in the Kolkata West International project in Howrah — then touted as the country’s first real estate project with foreign direct investment. By July 2008 he had paid Rs 21.28 lakh towards it — more than 80 per cent of the total cost of the bungalow. The promoters had promised to hand over the house by the end of 2008. But three years on, Upadhyay is still waiting for that to happen. He and dozens of other investors in the housing project have moved the consumer court, hoping to get redress.

These are just a couple of examples of the extreme harassment faced by real estate buyers when it comes to getting delivery of their houses or flats from promoters on time. Consumer court data indicate that in the year 2010, out of 331 cases filed, 204 were real estate related. But that is obviously the proverbial tip of the iceberg. After all, only a miniscule number of aggrieved consumers take the trouble of dragging errant real estate developers to court because of inordinate delays, or worse, because a housing project is abandoned altogether without the promoter refunding the booking amount.

The government too is aware of the problem. In fact, when quizzed in this regard, the West Bengal consumer affairs minister, Sadhan Pande, declared, “We are aware of the situation. Just give me the names of the victims of such delays and I will see that justice is delivered to them — if necessary by stepping outside the purview of law.”

The law does give the aggrieved consumer some relief. In 2003 the Consumer Protection Act (CPA) was amended to bring grievances regarding housing construction under it. Says consumer lawyer Prasanta Banerjee, “Once a case is filed against a builder, a notice is served within 21 days to the promoter and the case has to be disposed of within six months.”

However, despite the six-month time limit, it usually takes one to two years for a case to be solved. If the builder fails to hand over the flat within the time frame set by the court, Section 25 or Section 27 of the Consumer Protection Act could be invoked against him. Under this, the court could attach the property of the builder, impose a fine of Rs 10,000 and / or also punish him with three years’ imprisonment.

Would-be home owners could face harrowing delays in getting delivery of their dream home for a number of reasons. “Most cases of delay happen with small-time or one-time builders, who, before getting any of the necessary sanctions, mop up money from the market. The house is built, but the customers don’t get possession as the mandatory sanctions have not come through. Without proper sanctions the Kolkata Municipal Corporation will never issue a completion certificate,” says a KMC official on condition of anonymity.

But choosing a big builder may also not be a fail-safe option. In fact, many big real estate developers claim that they too are victims of the system. Says Rishi Jain, director, Jain Group, “Before constructing, the builder has to get 50 to 60 approvals from various government authorities. And most of these departments are not interconnected. It takes nearly a year to get all the sanctions and entails delays. Any renowned builder would like to finish a project within the stipulated time to maintain credibility in the market.”

Still, there’s little doubt that builders, especially the smaller ones, exploit this anarchic system to their advantage when they deal with clueless home buyers. While some delays may be for legitimate reasons, it’s easy to blame the system when the consumer is taken for a ride.

Realty check ● Check the ownership and title deed of the property ● Check if the owner has given a power of attorney to the builder to construct and sell flats ● Verify the sanction plan ● Make a time-binding agreement with the builder ● Choose a reputed builder, preferably a member of Credai

So when it comes to buying real estate, prevention is always better than cure. “One must check the ownership and title of the property and whether the handover of the property for construction has happened according to the law. Also, one must check whether the owner of the land has given a power of attorney to the developer to construct and sell flats to the purchasers. The sanctioned plan copy should be verified and a time-binding agreement should be made,” says Banerjee.

Experts say that a home buyer should always purchase property from builders who are members of the Confederation of Real Estate Developers’ Associations of India (Credai). “In Credai we have a strict code of conduct for our members. If we receive any complaint against any of our members, we try to solve the matter through our dispute redressal cell. Most of the cases have been solved through such mediation,” says Debjani Roy, secretary, Credai, West Bengal.

The buyer should also examine the track record of the promoter. “Sanctions, labour, dearth of building materials, lack of proper infrastructure coupled with global economic situation, may lead to delays on the part of a builder. If a purchaser checks the track record of the builder and other necessary documents, then most of the time he won’t be disappointed,” says Pradeep Sureka, president of Credai and chairman, Sureka Group.

However, if you have been rooked by a promoter, help could be at hand. Speaking to The Telegraph, consumer affairs minister Pande said that he had already requested the state home secretary to arrange a special police squad for tracing absconding promoters. “If anybody complains to me with specific instances of delay, I will immediately take action,” Pande asserted.

That would be sweet music to the ears of all those who have been left high and dry by their builders.