The Confederation of Real Estate Developers Associations of India (CREDAI) has agreed to a new code of conduct which it hopes will resolve many of the complaints made about the process of buying a house. Most of the complaints centre on delays in taking possession of the property, additional money being demanded over the agreed price, and failure to meet commitments.
In the past buyers have been concerned that their only recourse over complaints is long and drawn out litigation, and that the process lacked transparency and accountability. The 8,000 plus members of CREDAI will now have to sign a Code of Conduct which is a self-governing mechanism designed to get developers to adhere to certain levels of conduct.
These include being more transparent over area calculations and specifications, and to declare the amount of compensation payable in the event of any delays over the project being finished. The aim of the new Code of Conduct is to increase transparency and to help buyers differentiate between good developers and bad developers. In addition CREDAI has introduced a new Consumer Grievance Redressal Forum which allows any member of the public who has bought property through a CREDAI member, to lodge a complaint against them if they are dissatisfied with the level of service they received.
CREDAI has already run a pilot project, and found that 90% of the complaints against developers were resolved due to peer pressure on the forum. The forum is comprised of legal experts and experienced developers who decide whether the complaint will be upheld. CREDAI is currently running an advertising campaign to increase awareness of this new code, and hopes that this will restore the faith of consumers.
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