Consumer Forum directs Holy Faith Builders to compensate buyers for coastal zone violations

In a landmark decision, the Ernakulam District Consumer Disputes Redressal Commission has ruled in favor of a couple, directing a private builder, Holy Faith Builders and Developers, to pay over Rs 20 lakh in compensation. The realty firm had previously sold a flat to the couple in Maradu, a coastal area, which was later demolished on orders from the Supreme Court due to violations of coastal zone regulations.
The commission ordered the builder to refund over Rs 17 lakh to the couple as the balance consideration for the flat. Additionally, the builder was instructed to pay Rs five lakh as compensation for deficient service and unfair trade practices, with an extra Rs 25,000 towards the litigation costs incurred by the complainant couple.
The Supreme Court had previously ruled that the apartment complex constructed by Holy Faith Builders and Developers was in violation of the law, which formed the basis of the commission's decision. The consumer forum unequivocally determined that the builder's actions constituted a deficiency in service and unfair trade practices.
The commission's verdict further emphasized that the builder inadequately fulfilled its contractual obligations to the complainants, leading to a deficiency in service, negligence, and failure on the part of the builder. The couple suffered mental agony, hardship, and financial losses due to the builder's actions.
The complainants, a retired Naval officer and his wife, had purchased the flat with the assistance of a loan. They claimed that the builder provided them with false assurances regarding the legality and approvals for the apartment complex. Subsequently, the Supreme Court, in 2019, ordered the Kerala government to demolish apartment complexes in Maradu that were found to be in violation of coastal zone regulations.
This decision sets a significant precedent for consumer rights in the real estate sector, emphasizing the importance of transparency, accountability, and compliance with regulatory standards. It serves as a reminder to developers and builders to adhere to the law, provide accurate information to buyers, and fulfill their contractual obligations to avoid costly legal repercussions. The ruling has been celebrated by consumer advocacy groups and is seen as a step towards protecting the interests of homebuyers in India.

Next (Ahmedabad offers compensation in TDR to landowners affected by Town Planning Scheme)

Consumer Forum directs Holy Faith Builders to compensate buyers for coastal zone violations

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