| CIN | Not Available |
|---|---|
| Year Established | Not Available |
| Address | Not Available |
| Company Status | Not Available |
Introduction
When considering a builder for your next real estate investment, looking at their track record and handling of legal matters can provide essential insights into their reliability and professionalism. This blog post examines ROYAL CONSTRUCTION, a builder based in Gujarat, to understand their performance in the context of legal complaints, case outcomes, and overall accountability.
Overview of ROYAL CONSTRUCTION
Royal Construction has encountered two legal complaints to date, both resulting in unfavorable outcomes. The builder is primarily engaged in projects within Gujarat, specifically highlighted by the ongoing issues surrounding 'Manorath Apartment'. Given the legal background, scrutiny of their actions provides a clearer image of their operational practices.
Legal Case Insights
Cases Lost
Both cases filed against Royal Construction resulted in losses for the builder. The key issues raised include:
- Failure to Submit Required Documents: The primary claim involved the non-submission of crucial annual and quarterly audit reports for the 'Manorath Apartment' project. This lack of compliance with regulatory requirements led to fines imposed by the authority.
- Fines Incurred: A fine of Rs. 20,000 was levied for the delayed submission of the annual audit report, while a separate fine of Rs. 10,000 was imposed for not providing quarterly reports in adherence to the Real Estate (Regulation and Development) Act (RERA).
The common factor in these losses is the builder's inability to meet regulatory deadlines and submit necessary documentation, showcasing a pattern of negligence or mismanagement.
Cases Won
Contrarily, the outcomes of the builder's defense were less favorable for their reputation. Although two cases are recorded as won, it is important to note that Royal Construction did not actively contest any claims in these instances. Instead:
- No Defense Presented: The builder did not provide any claims or defenses in response to the allegations regarding the failure to submit the required reports, resulting in fines imposed by the regulatory authority. The cases are technically categorized as 'won' due to the nature of the complaint proceedings but reflect a refusal or inability to engage substantively in the defense against claims.
Conclusion
Overall, the performance record of ROYAL CONSTRUCTION raises several red flags for potential buyers. The failure to submit required reports and the subsequent legal ramifications indicate a lack of diligence in regulatory compliance, which is vital in the construction and real estate industry.
Tips for Potential Buyers
- Thoroughly Research the Builder: Ensure that you delve into the builder’s past projects, client reviews, and legal history before considering a purchase.
- Request Documentation: Always ask for and review the necessary compliance documents, audits, and reports prior to finalizing any purchase.
- Engage a Legal Expert: Having a legal expert review contracts and builder history can help you understand potential risks associated with your investment.
General Tips for Selecting Any Builder
- Check their Reputation: Look for online reviews, testimonials, and third-party evaluations of the builder.
- Evaluate Previous Projects: Visiting past completed projects can give an insight into the build quality and craftsmanship.
- Understand the Legal Landscape: Be aware of builder obligations and rights under acts like RERA, which protect consumer interests.
By keeping these factors in mind, you can safeguard yourself and make informed decisions when choosing a builder for your real estate investments.
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Here you’ll find cases where others sued the builder, and the builder lost. We’ve included a simple summary and key takeaways from each case.
Analysis of the cases filed against Royal Construction, where the builder lost, revealed significant insights into their legal disputes. The cases primarily revolve around two key themes: non-compliance with reporting requirements and penalties for project delays.
In terms of non-compliance, the cases highlight the importance of adhering to regulatory obligations, particularly concerning project reporting. The builder was fined for failing to submit both annual audit reports and quarterly reports for the 'Manorath Apartment' project. These cases demonstrate a pattern where the builder faced legal consequences due to insufficient fulfillment of information reporting duties. Such non-compliance not only incurs financial penalties but also raises concerns about transparency and accountability in project management.
The theme of penalties for project delays is closely related, as the builder's inability to meet reporting deadlines reflects a broader trend of inadequate project management. While the cases do not explicitly detail delays in project completion, the failure to report on schedule suggests potential mismanagement, which is a common precursor to further legal disputes, including those involving delayed possession claims from buyers.
A striking reason for the builder’s losses in these cases is their lack of defense or justification for their actions. In one case, no claim or defense was provided at all, leading to an imposed fine. This absence of accountability and transparency not only jeopardizes the builder's legal standing but also undermines buyer trust and confidence in their projects.
Overall, the cases against Royal Construction serve as a cautionary tale for buyers regarding the importance of scrutinizing a builder's compliance history, transparency practices, and project management track record before making a purchase. They also highlight the need for builders to take their reporting obligations seriously to avoid legal ramifications and maintain positive relationships with their clients.
This table provides an analysis of individual cases that contributed to the summary above. Click on any row to expand and view complete details, and use the "Show More" button to load additional rows as needed.
| Case Number | State | Summary | Case Topic | Detailed Summary | Appellant Name | Respondent Name | Source |
|---|---|---|---|---|---|---|---|
| GI/CMP/NCQR/Surendr… | Gujarat | The promoter, Royal Construction, failed to submi… | ["Non-submission of… | {"appellant_claim": "", "respondent_claim": "Fail… | Royal Construction | https://drive.google.com/uc?id=1kY1kp8ZXaZ6ucndQs9QTZSs_8wFgwnXx | |
| GJ/CMP/NCAR/Surendr… | Gujarat | The Gujarat Real Estate Regulatory Authority (Guj… | ["Non-submission of… | {"appellant_claim": "The appellant, Gujrera, clai… | Gujarat Real Estate… | Royal Construction | https://drive.google.com/uc?id=1WupFf93nEyUWQqsAqPAp3RXdXT-MI3ks |