Introduction

When considering a property purchase, it's essential to conduct thorough due diligence on builders and developers. In the realm of real estate, potential buyers must analyze the track record of builders to make informed decisions. In this article, we delve into VIIJCON PROPERTIES, a builder operating in Karnataka, exploring its legal challenges and offering insights for potential buyers.

Overview of VIIJCON PROPERTIES

VIIJCON PROPERTIES has faced a total of two complaints, both resulting in losses for the builder. These legal battles highlight significant issues related to project completion and possession delays, prompting questions about the builder’s reliability and commitment to fulfilling its obligations.

Legal Case Summaries

1. Delayed Project Completion: In the first case, the complainant claimed that VIIJCON PROPERTIES did not complete the project on time and sought a refund of their investment. The builder contended that the delays were caused by factors beyond their control; however, the RERA authority ruled in favor of the complainant, ordering the developer to refund the amount with interest.
2. Possession Delay and Compensation: In the second case, the issue was the delayed possession of a flat, with the complainant asking for monetary compensation. VIIJCON PROPERTIES argued that the work was progressing rapidly and that the compensation demanded was excessive. Despite this defense, the adjudicating officer ruled in favor of the complainant, mandating the builder to compensate at a rate of 10.75% annually on the total amount paid until the possession is delivered.

Patterns in Legal Challenges

Common Factors in Lost Cases:

• Project Delays: Both cases stemmed from delays in project completion and possession, indicating a troubling trend in the builder’s ability to adhere to timelines.
• Financial Repercussions: The outcomes of these legal disputes resulted in financial liabilities for VIIJCON PROPERTIES, which may affect its financial health and future project delivery.

Factors Noted in Mild Defenses:

• External Circumstances: The builder's defense relied on citing unforeseen circumstances as causes for the delays, suggesting a potential lack of proactive project management.
• Claims of Progress: In at least one instance, the builder claimed that the work was underway, hinting at possible communication issues between the builder and buyers.

Conclusion

In conclusion, prospective buyers should approach VIIJCON PROPERTIES with caution. The builder's history of losing legal cases surrounding project delays raises significant concerns regarding reliability and project management. Buyers should thoroughly scrutinize all available information, looking for red flags such as customer complaints, legal disputes, and overall project delivery timelines.

Tips for Potential Buyers

1. Due Diligence: Research the builder's history of complaints and litigation. Look for reviews from past customers and current project statuses.
2. Check Project Timelines: Ensure that the builder has a concrete plan for project completion with clear milestones.
3. Engage Legal Advice: Before making any purchases, consult a legal expert to understand the terms and conditions involved, focusing on flexibility, penalties for delays, and other contract specifics.

General Tips for Buyers Selecting Builders

• Verify Credentials: Ensure the builder is registered with statutory bodies like RERA and has a good standing there.
• Seek Recommendations: Word of mouth can be invaluable; ask friends or family for recommendations based on their experiences.
• Request Documentation: Transparency is key. Request all relevant documents, such as completion certificates, project brochures, and financial statements.

Being informed and prepared can protect your interests and help you make wise investment choices in the real estate market.