By Subir Nandi – Urban Acres
Despite the introduction of RERA regulations and various consumer protection measures, the Indian property sector remains riddled with instances of developer negligence, leaving home buyers exposed to numerous risks. Former Indian cricket star Yuvraj Singh has recently highlighted the issue of substandard construction quality in the Indian real estate market, bringing much-needed attention to a widespread problem.
The World Cup hero has leveraged his influence to take legal action against two Delhi-based real estate companies, citing violations of his privacy rights and delays in the possession of a residential property. Through legal notices issued by Delhi’s Rizwan Law Associates, Singh has underscored several grievances, including poor construction quality.
However, the question remains whether all home buyers have the same privilege to challenge powerful developers. The answer, unfortunately, is no. Despite RERA being in place for five years, there is still no robust mechanism to verify construction quality. Developers typically do not allow buyers access to construction sites during the construction process, and RERA lacks provisions to inspect the construction materials or quality grades used.
This oversight is particularly ironic in a country where even a Rs 1 Candy is mandated to disclose its ingredients, yet home buyers are kept in the dark about the materials and quality used in their homes.
Exacerbating the situation is the rising cost of construction. Over the past three years, there has been a 50% increase in the cost of construction materials and labour. When it comes quality construction, India is quite unique in the sense that much of its construction is performed by unskilled labourers. This can be largely attributed to the lack of a skilling ecosystem in the construction industry, which further contributes to substandard quality. As a result, developers and contractors frequently cut corners to save money, compromising on both quality material and skilled labor.
Another related issue is the pervasive delay in project completion. Despite RERA’s requirement for timely project completion, many developers fail to meet their deadlines, causing significant financial strain for buyers. This has led to a new trend of last-minute rushes to complete projects, which further compromises quality.
An investigation by Urban Acres into several ongoing SRA projects in Mumbai uncovered numerous cases of builders cutting costs by compromising on materials and workmanship. This not only devalues the SRA projects, reducing them to vertical slums, but also poses severe safety risks for occupants. Structural defects and poor finishing are common, leading to extensive repair costs and forcing many slum dwellers to seek asylum in other slums.
We have also interacted with many aggrieved homebuyers who have complained about the lack of transparency and accountability from developers. According to them, there is a always a hidden charges, unauthorized changes to building plans, amenities and common areas. Despite assurances during the sales process, buyers often find themselves at the mercy of developers who prioritize profit over customer satisfaction.
Additionally, some developers flout environmental regulations, encroaching on green spaces and wetlands and ignoring sustainability standards, which contributes to urban menace in a City like Mumbai or Chennai in the form of floods and landslides.
While the Real Estate Regulation and Development Act (RERA) has empowered homebuyers to some extent by mandating project registration, setting completion timelines, and ensuring transaction transparency, it falls short in addressing quality issues. There is no neutral authority in India to scientifically test construction quality, and private institutions are prohibitively expensive for the average homebuyer.
There is a pressing need for more stringent enforcement mechanisms in Indian real estate and greater consumer awareness to tackle the persistent challenges posed by developer negligence to meet quality. RERA should incorporate provisions for quality certification by top technical institutions like IITs as part of the project cycle’s final approval. Additionally, heavy penalties should be imposed on developers failing to meet established standards. Moreover, there is a need for home buyers collective to seek policy changes and robust enforcement mechanism to protect all home buyers and ensure the construction of safe, high-quality homes in India.
