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CRAFT CONSTRUCTION

3.8/5 (2 cases analyzed)
  • States Active In: Gujarat
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Overall Case Outcomes

Introduction
Craft Construction is a builder operating primarily in the state of Gujarat. While their projects may attract potential buyers, it's essential to evaluate their legal standing to make an informed decision. In this post, we will delve into the builder's complaint history, legal battles, and what prospective buyers should keep in mind before engaging with them.

Complaint Overview
Craft Construction has encountered a total of 2 recorded complaints. Both cases resulted in unfavorable outcomes for the builder, as they lost each case filed against them. This indicates possible issues with adherence to construction regulations and contract obligations, which could present risks for future buyers.

Legal Case Analysis
Cases Lost
The following patterns can be observed in the cases that Craft Construction lost:
1. Non-Compliance with Regulations: In both instances, the builder was found to have violated specific regulations, namely the RERA Act and the Real Estate (Exchange and Development) Act, 2016. This repeated pattern shows a troubling lack of compliance with legal requirements, which could impact project delivery and quality.
2. Admission of Fault: In both cases, the builder admitted to the violations. The claims were tied to failures in submitting necessary documentation and inaccurately advertising project details. Such admissions suggest neglect rather than isolated errors, raising concerns about operational standards within the company.

Cases Won
Interestingly, despite the two cases lost, the summary indicates that the builder has won 2 cases as well. Here are the observations:
1. Acknowledgement of Mistakes: While the builder may have been on the losing side of some cases, they also faced penalties in their won cases. The fines indicate that the authority recognized the violations but showed leniency based on the claims of ignorance or inadvertence from the builder.
2. Penalty Over Other Severe Consequences: The outcomes in the builder's favor involved penalties rather than complete dismissals or severe reprimands, indicating that while they were penalized, they were not entirely at fault under the authority's assessment.

Conclusion
Overall, Craft Construction presents a mixed legal profile. While they have managed to win some cases, the consistent losses highlight significant regulatory compliance issues. For potential buyers, it is crucial to recognize these patterns.

Tips for Potential Buyers
1. Conduct Thorough Research: Look for more comprehensive reviews and testimonials from previous customers. This can provide insights into the company's reputation beyond legal cases.
2. Inquire About Compliance Measures: Engage with the builder regarding their measures to improve compliance with RERA regulations. Understanding how they plan to address past mistakes can give you confidence in their future projects.
3. Request Project Documentation: Ensure that all necessary project documents are available for review before signing any agreements. This includes RERA registration and compliance certificates.

General Tips When Selecting Any Builder
1. Check Legal Standing: Always verify the builder's legal background. Previous complaints and verdicts can inform you of potential risks.
2. Evaluate Experience and History: Consider the builder's experience in the industry, including how many projects they have completed successfully.
3. Seek Recommendations: Talk to friends, family, or real estate experts who can recommend reliable builders.

By keeping these considerations in mind, buyers can make more informed decisions when navigating the home-buying process.

Cases Lost by Builder (When Defending)

Yearly Trend for these Cases

Common Topics
Non-compliance with RERA Act and Rules Violations in Advertising under RERA

Analysis of the cases filed against Craft Construction, where the builder lost, revealed significant insights into their legal disputes. The cases can be broadly categorized into two themes: non-compliance with the RERA Act and rules, and violations in advertising under RERA.

The first type of cases involves the builder's failure to adhere to the provisions set forth in the RERA Act and Rules. For instance, in one case, the appellant claimed that Craft Construction did not submit the required quarterly reports for their registered project. This highlights a pattern of neglect towards regulatory obligations, which led to a financial penalty of Rs. 50,000.

The second theme pertains to violations committed by the builder during the advertisement of their projects. As exemplified in another case, Craft Construction was found to have advertised a project without mentioning the mandatory RERA registration number and website, as required by Section 11(2) of the Real Estate (Exchange and Development) Act, 2016. This resulted in a penalty of Rs. 1,25,000, demonstrating the legal risks associated with non-compliant marketing practices.

A common trigger for the litigation in these cases was the builder's inadvertence or ignorance of the legal framework surrounding real estate projects. People brought cases to court primarily to contest these violations and enforce compliance with RERA, highlighting the importance of composure with legal requirements in the real estate sector.

The builder lost these cases predominantly due to their inability to meet regulatory standards and fulfill their obligations. Insufficient evidence of compliance, coupled with admissions of ignorance regarding the law, undermined their defense. Hence, it is critical for builders to acquaint themselves with the RERA Act and its implications to avoid similar legal consequences in the future.

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