SHRI BALAJI INFRA

Introduction

Shri Balaji Infra, a budding player in the real estate sector, primarily operates in the states of Chhattisgarh and Gujarat. While their ambition to contribute to the infrastructure development is commendable, they have faced several legal challenges that raise concerns for potential buyers. In this blog post, we will look closely at the complaints against Shri Balaji Infra, the outcomes of their legal battles, and some essential tips for prospective homebuyers.

Legal Case Overview

Shri Balaji Infra has a record of 2 complaints, none in their favor. This raises questions about their operational transparency and compliance with the relevant laws governing real estate practices.

Summary of Legal Cases

1. Case Related to Project Progress Updates:
   - Appellant Claim: The Chhattisgarh RERA alleged that Balaji Infra failed to update the quarterly progress of the 'Crossroad Business Park' project on the RERA web portal, violating provisions of the Real Estate (Regulation and Development) Act, 2016.
   - Respondent Claim: Balaji Infra argued that they had not sold any units in the project and therefore believed they had no obligation to provide updates.
   - Final Verdict: RERA imposed a penalty of Rs. 50,000 on Balaji Infra for the violations and suspended the project's registration until compliance with the orders.
2. Case Related to Ignorance of the Law:
   - Respondent Claim: The promoter claimed a lack of awareness regarding the law, asserting no intention to violate any rules.
   - Final Verdict: The Authority fined the promoter Rs. 50,000, indicating that ignorance is not a valid defense in matters of legal compliance.

Analysis of Legal Cases

Patterns in Lost Cases

• Operational Compliance: Both cases demonstrate a lack of compliance with RERA regulations. The failure to update project progress is a critical element that led to the builder losing the cases. This suggests a possible deficiency in operational management and adherence to regulatory requirements.
• Awareness of Legal Obligations: The builder's claim of unawareness regarding legal requirements points towards inadequate understanding and ignorance of the existing laws, which can be detrimental in the long run.

Patterns in Won Cases

• Absence of Sold Units: In the relevant case where the builder attempted to defend themselves by stating that no units were sold, it indicates their reliance on technicalities rather than a transparent operational strategy.

Conclusion

Shri Balaji Infra's track record reveals a troubling pattern concerning legal compliance. With 2 cases lost and no victories, potential buyers should exercise caution when considering properties from this builder. Their operational practices could pose risks to buyers looking to invest in real estate projects, especially pertaining to project updates and adherence to regulatory obligations.

Tips for Potential Buyers

1. Research Thoroughly: Look into the builder's legal history and reviews from previous buyers to ascertain their reliability and transparency.
2. Check for Compliance: Ensure that the builder complies with all required legal regulations, especially those pertaining to RERA.
3. Visit Ongoing Projects: If possible, visit their ongoing projects to gauge the progress and quality of construction.
4. Consult Experts: Consider hiring legal advisors who specialize in real estate to guide you through the purchasing process.

General Tips for Selecting Any Builder

• Verify Credentials: Always verify the builder's credentials and reputation in the market.
• Read Reviews: Seek feedback from previous buyers to understand their experiences with the builder.
• Clarify Terms: Ensure all terms regarding payments, timelines, and penalties are clear and documented.
• Assess Quality of Work: Explore past projects to evaluate the quality of construction and adherence to timelines.

In conclusion, while Shri Balaji Infra has potential as a builder, their legal challenges underscore the importance of due diligence for prospective buyers.

Analysis of the cases filed against Shri Balaji Infra, where the builder lost, revealed several key themes across the disputes. The cases primarily revolved around two types: non-compliance with the provisions set by the Real Estate (Regulation and Development) Act, 2016 (RERA), and penalties imposed due to delays or failures to update project information.

The first theme involves the builder's failure to adhere to RERA requirements, particularly concerning the obligation to keep potential buyers informed through regular project updates on the RERA web portal. In one significant case, Chhattisgarh RERA penalized Balaji Infra for not updating the quarterly progress of its 'Crossroad Business Park' project, despite the builder's contention that no units had been sold. This highlights a pattern where builders may misunderstand their obligations, thinking that the sale of units triggers the requirement for updates, rather than the existence of the project itself.

The second theme centers on the penalties imposed on the builder for these violations. In addition to the Rs. 50,000 penalty in the aforementioned case, another instance resulted in a similar fine, reaffirming the authority's commitment to enforcing compliance. The builder's defense—that they were not aware of the law—indicates a troubling lack of due diligence and legal awareness in their operations.

Common reasons for the losses in these cases include insufficient evidence to support the builder's claims, non-compliance with clear regulatory requirements, and a fundamental misunderstanding of their obligations under RERA. These patterns suggest systemic issues within the builder’s operations and should raise concerns for potential buyers regarding the reliability and legality of their projects.