SHRI RANGAM HOMES

Introduction

In the competitive landscape of real estate, the credibility of a builder often hinges on their compliance with regulatory standards and the resolution of legal disputes. In this post, we take a closer look at Shri Rangam Homes, a builder based in Gujarat, analyzing their performance through the lens of legal challenges faced, complaints received, and the outcomes of those cases.

Overview of Shri Rangam Homes

Shri Rangam Homes has been identified as a builder operating primarily in Gujarat. However, their track record is marred by a concerning legal history, evidenced by the total number of complaints and the outcomes of legal cases. Notably, the builder has faced two legal cases, both of which resulted in losses.

Legal Case Details

The builder was involved in two distinct cases:

1. Case 1: The Gujarat Real Estate Regulatory Authority (Gujrera) charged Shri Rangam Homes for failing to file an annual audit report for their project, 'Sri Rangam Villa,' in a timely manner. Despite the builder's assertion that they submitted the report, the ruling mandated that they pay a penalty of Rs. 15,000.
2. Case 2: In another instance, the builder was accused of violating provisions of the Real Estate (Regulation and Development) Act, 2016, due to unauthorized public statements about flat sales. The authority found this claim substantiated, resulting in a fine of Rs. 50,000.

Analysis of Legal Outcomes

Lost Cases Patterns

• Late Reporting and Compliance Issues: The recurring theme in both cases is the builder's failure to comply with regulations, whether it was the submission of essential documentation or adherence to sales regulations. Shri Rangam Homes’ inability to provide timely and thorough reports reflects a significant compliance gap.
• Regulatory Authority's Effectiveness: The authority’s decisions highlight the importance of regulatory frameworks in enforcing accountability among builders. In both cases, it was the regulatory body that brought the issues to light, emphasizing the need for builders to remain vigilant about adherence to laws and timely submissions.

Won Cases Patterns

• Defense of Good Faith Actions: In the second case, while the builder claimed their public statements were made in good faith, this defense did not hold up against regulatory scrutiny. The lack of successful defense in any cases indicates a troubling trend for the builder.
• Emerging Non-compliance Trends: The absence of any won cases highlights a broader issue of consistent non-compliance, suggesting that any claims of proper conduct may not have been substantiated with sufficient evidence or documentation.

Conclusion

The performance record of Shri Rangam Homes raises a red flag for potential buyers. With two legal disputes resulting in losses, the builder's reliability is called into question. While the builder operates in a competitive market in Gujarat, their interaction with regulatory authorities indicates deeper compliance issues.

Tips for Potential Buyers

• Due Diligence: Investigate the builder’s legal track record thoroughly. Understand the specifics of any complaints and how they were resolved.
• Seek Transparency: Ensure that the builder provides all necessary documentation, including audit reports and compliance certifications, to avoid potential pitfalls.

General Tips for Buyers Selecting Any Builder

1. Research and References: Look for reviews and feedback from previous buyers to gauge overall satisfaction and experiences.
2. Check Regulatory Compliance: Verify any builder’s compliance history with local real estate regulatory authorities.
3. Assess Financial Stability: Review the financial health of the builder, as this can impact the completion of your project.
4. Examine Previous Projects: Visit existing properties developed by the builder to assess quality and craftsmanship.
5. Legal Consultation: Consider consulting with a legal expert when entering agreements to ensure your interests are protected.

By taking these steps, buyers can safeguard their investments and ensure that they are dealing with credible builders.

Analysis of the cases filed against Shri Rangam Homes, where the builder lost, reveals significant insights into their dealings with regulatory authorities. The cases highlight three primary themes: non-compliance with regulatory requirements, penalties for delayed submissions, and violations of public disclosure provisions.

The first type of cases revolve around Shri Rangam Homes' failure to adhere to the necessary regulations set forth by the Gujarat Real Estate Regulatory Authority (Gujrera). A notable instance of this is the delayed submission of the annual audit report for the 'Sri Rangam Villa' project. Instead of submitting the report within the stipulated timeframe, the builder contends that they had completed the audit but faced issues uploading it to the Gujrera portal. This distinction highlights a pattern where the builder’s defense often centers around procedural misunderstandings rather than outright non-compliance.

The second theme involves penalties imposed on the builder for various delays. In the case of the annual audit report, Shri Rangam Homes was ordered to submit the report promptly and was fined Rs. 15,000. This penalty indicates a systemic issue where the builder may not be prioritizing timely submissions, leading to legal consequences that could have been avoided.

The third theme emerges from violations of the Real Estate (Regulation and Development) Act, 2016, particularly in relation to public statements made by the builder. Shri Rangam Homes was found to have made public declarations regarding flat sales without ensuring compliance with the required regulations, leading to a fine of Rs. 50,000. This shows a concerning lack of due diligence with respect to legal standards, emphasizing the importance of adherence in public communications.

Common reasons for the losses in these cases include insufficient evidence to support the builder's claims, non-compliance with regulatory requirements, and a general lack of understanding of their obligations under the law. The repeated penalties suggest that Shri Rangam Homes may not have implemented effective compliance measures, which could be a long-standing issue affecting their operations. Overall, this analysis serves as a cautionary tale for potential buyers, emphasizing the importance of considering a builder's legal history and compliance record before making a purchase.