Buying a home is often the most important financial decision many individuals make in their lifetime. It is a long-term investment that involves careful planning and significant money. When a buyer commits to purchasing a flat or apartment, they rely heavily on the project plans shared by the builder. These plans usually include the design, layout, amenities, and overall specifications, which form the basis of the agreement between the buyer and the builder.
Unfortunately, in some cases, builders alter these approved project plans without informing or obtaining consent from buyers. Such unauthorized changes can cause disputes, financial losses, and emotional distress for homebuyers. To safeguard buyers and regulate the real estate sector, the Indian government enacted the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA.
Latest Update- Telangana RERA Declares Unauthorized Project Changes Illegal Without Buyer Consent
Builders in Telangana are violating laws by making unauthorized changes to approved real estate project plans, according to the Telangana Real Estate Regulatory Authority (TGRERA). These changes include adding floors, shifting amenities, or altering flat layouts without buyer consent. RERA mandates that any modification affecting the structure or common areas must be approved by at least two-thirds of the buyers, and even minor changes like relocating a sewage treatment plant or altering flat configurations require prior approval and clear communication to buyers.
A significant issue arises when builders use Transferable Development Rights (TDR) to add extra floors mid-construction, which changes the undivided share of land (UDS) allocated to existing flat owners, potentially leading to disputes. Buyers are also affected when amenities like parks or parking spaces are relocated or downsized without notification, reducing their promised benefits. Complaints have been filed regarding misleading views, overcrowded common facilities, and inadequate parking provisions that contradict approved plans.
TGRERA has registered around 15 complaints related to such violations, emphasizing that builders must seek explicit buyer consent before making any changes to sanctioned layouts, as per Section 14(1) of the law. Srinivas Rao, a TGRERA member, highlighted that local authorities also have a responsibility to ensure buyer approval before sanctioning revised plans, stressing the importance of protecting buyer interests against unilateral builder decisions.
Unauthorized changes by builders can seriously impact buyers, causing financial and legal troubles. Knowing your rights and how to respond is essential to protect your investment and hold builders accountable.
This Know- How article explains what buyers need to know about builder changes, what legal steps are available if changes happen without consent, the consequences builders may face, and how buyers can avoid common mistakes.
Understanding Builders’ Responsibilities: What Can and Cannot Be Changed?
When a buyer books a flat in a residential project, the builder provides an approved plan sanctioned by relevant authorities. This approved plan forms the core agreement on which the purchase is based. The builder is legally obligated to follow this plan.
Minor Changes vs. Major Changes
It is important to distinguish between minor and major changes:
- Minor Changes: These include small adjustments to structural or architectural elements, which might be necessary for safety or technical reasons. For example, slight alterations in wall thickness or internal partitions may qualify as minor changes. Builders can make these changes without explicit buyer consent but must inform buyers transparently. Importantly, these modifications should be reviewed and verified by authorized architects or engineers to ensure compliance with regulations.
- Major Changes: Major changes are substantial modifications such as increasing the number of floors, changing the number or size of flats, altering common areas like parks or parking spaces, or modifying essential amenities. Such changes significantly affect the project’s scope and impact the buyers’ rights. Builders must obtain written consent from at least two-thirds of the buyers before proceeding with any major changes. Without this consent, major alterations are illegal.
Why Blanket Consent is Invalid
Builders sometimes try to secure a broad, one-time consent at the time of booking that allows them to make any future changes. This “blanket consent” is not valid under RERA. The law mandates that consent must be specific, informed, and obtained after fully disclosing the nature of the proposed changes and their consequences. Buyers should never sign agreements allowing unrestricted modifications.
Legal Rights Available to Buyers
If you discover that your builder has altered project plans without consent, you have several legal options.
1. Filing a Complaint with RERA
The Real Estate Regulatory Authority (RERA) has been established in every state to protect buyers’ interests. Under Section 31 of the RERA Act, buyers can lodge complaints against builders who violate approved plans. Complaints can be submitted online via the respective state’s RERA portal.
Upon receiving a complaint, RERA investigates the matter and can impose penalties on builders, including fines up to five percent of the project’s estimated cost. The authority can also order restoration of the original plans or cancellation of unauthorized additions.
Several states have successfully taken action against builders who made unauthorized changes, reinforcing RERA’s role as an effective regulator.
2. Consumer Disputes Redressal Commission (CDRC)
If unauthorized changes have caused financial loss or mental distress, buyers can approach the Consumer Disputes Redressal Commission. Complaints can be filed at the district, state, or national level based on the value of the property.
The commission can award compensation for loss of space, amenities, or delays. For example, buyers have received refunds and penalties against developers who failed to deliver as promised or deviated from agreements.
3. Civil Lawsuit for Breach of Contract
For serious deviations from the contract, such as significant reductions in flat size or removal of promised facilities, buyers may file civil suits against builders for breach of contract. This legal remedy seeks to enforce the original terms or stop unauthorized construction.
Courts have ruled in favor of buyers, ordering refunds and penalties in cases where builders failed to comply with agreed plans or timelines.
4. Compensation Claims for Losses
Unauthorized changes can cause depreciation in property value and loss of amenities. Buyers can claim compensation for such financial losses. Courts recognize dilution of the undivided share of land (UDS) as a valid reason for compensation claims. Protecting your UDS is vital since it directly affects your property’s value and ownership rights.
5. Demand Restoration to Approved Plans
Buyers can insist that builders restore the project to the original approved plan if unauthorized modifications have been made. Courts have the power to order demolition of illegal constructions or modifications that violate the approved plans.
For instance, in notable cases, the Supreme Court has directed builders to demolish illegally constructed towers built without buyer consent.
6. Complaint to Local Municipal Authorities
Local municipal bodies enforce building codes and approved plans. Buyers can report violations to municipal authorities who may issue stop-work orders, fines, or orders for demolition. Municipal intervention often expedites enforcement and compliance.
7. Reporting to Competition Commission of India (CCI)
If a builder abuses its dominant market position or engages in unfair trade practices, buyers can file complaints with the CCI. The commission investigates such matters and may penalize builders engaging in anti-competitive conduct.
8. Alternative Dispute Resolution (ADR)
Mediation or arbitration can be pursued as a faster, cost-effective way to resolve disputes with builders. ADR is especially helpful when both parties are willing to negotiate and settle amicably.
9. Complaint to National Human Rights Commission (NHRC)
If a builder’s actions violate fundamental human rights, such as the right to shelter, buyers can escalate the issue to the NHRC. The commission can investigate and recommend action to protect buyer rights.
10. Approaching Higher Courts
If other remedies fail, buyers can approach the High Court or Supreme Court. These courts have the authority to issue writs or directives to enforce compliance and protect buyer rights at the highest judicial level.
Consequences for Builders Who Violate RERA
Builders who change plans without consent face serious consequences:
- Cancellation of Project Registration: RERA can cancel a builder’s project registration for non-compliance, stopping all construction and sales activities.
- Dilution of Undivided Share (UDS): Adding extra units reduces each buyer’s undivided share of land, decreasing property value. Courts have recognized this as a ground for compensation.
- Demolition of Illegal Constructions: Courts can order demolition of unauthorized structures built without consent.
- Financial Penalties and Refunds: Builders may be ordered to refund buyers with interest and pay penalties for causing harassment.
Common Mistakes Buyers Should Avoid
To protect themselves, buyers should avoid these errors:
- Accepting Unilateral Contract Clauses: Avoid contracts with vague or one-sided terms allowing builders to change plans without consent.
- Delaying Complaints: Promptly file complaints to avoid losing legal rights due to limitation periods.
- Making All-Cash Deals: Always make payments through documented banking channels to ensure proof of payment.
- Relying on Verbal Promises: Ensure all commitments and changes are documented in writing and signed.
Conclusion
The Real Estate (Regulation and Development) Act has brought significant improvements to transparency and accountability in the Indian real estate sector. Builders must follow approved project plans or obtain explicit consent from buyers for any changes. Buyers now have multiple legal avenues to challenge unauthorized changes, seek compensation, and demand restoration.
Being informed, vigilant, and prompt in taking action can safeguard your investment and rights as a homebuyer. If you face unauthorized modifications, do not hesitate to file complaints, seek legal advice, and protect your homeownership.
