Another pressing issue is the perceived lack of enforcement by RERA. Questions have been raised about whether the authority is understaffed or insufficiently stringent in holding errant builders accountable
A growing number of homebuyers in Guwahati are voicing concerns over alleged neglect and misappropriation of funds by local construction firms. These allegations suggest that several companies are disregarding the hard-earned money of buyers by delaying projects or delivering incomplete infrastructures. The rapid expansion of the flat culture in the city has, according to some, provided an opportunity for unscrupulous builders to exploit buyers.
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One prominent case involves ABC (name changed) Construction, which has been accused of using images of celebrities such as Zubeen Garg and Lovlina Borgohain to attract customers. After securing booking and initiation payments, the firm allegedly neglects buyer requirements and diverts funds to other ventures, including film and serial production.
The issue came to light when a buyer approached GPlus to highlight the ongoing trend in the city. The buyer recounted investing ₹5.5 lakh in 2020 for a 1BHK flat near Guwahati Airport in Azara, with assurances from ABC Construction that the project would be completed by 2022. When the deadline passed without progress, the buyer requested a refund in 2024, only to find that the manager had left the company and their requests were ignored. By that time, the amount, including interest, had risen to approximately ₹11.5 lakh.
Multiple complaints against ABC Construction have been filed with the Real Estate Regulatory Authority (RERA) concerning various projects. Regarding the Azara project, RERA mandates that firms submit periodic 'work progress reports,' which ABC Construction failed to provide. This omission prompted RERA to initiate a suo motu case. The RERA court subsequently ordered the firm to refund the buyer's money. However, ABC Construction reportedly stalled hearings and disregarded RERA's directives for an extended period. In November 2024, an order was issued for the firm to refund and compensate the buyer, with a hearing scheduled for February 2025. During this hearing, the firm's representatives requested a three-month extension to fulfil the refund, which the RERA court granted, and a partial payment was made to the buyer.
A source from RERA confirmed the order, and the buyer acknowledged receiving the partial payment.
This case is not isolated. Concerns are mounting over the apparent impunity with which some builders operate, disregarding the pleas of potential buyers. Reports suggest that such practices are becoming more prevalent in Guwahati, with buyers often feeling intimidated by the influential connections and financial clout of these builders. Many cases remain unreported due to fear of retaliation.
Another pressing issue is the perceived lack of enforcement by RERA. Questions have been raised about whether the authority is understaffed or insufficiently stringent in holding errant builders accountable. Regardless of the cause, the public continues to bear the brunt of these challenges.
In a related incident, GPlus reported on a similar case where buyers faced significant delays and unfulfilled promises from a local construction firm. Despite making substantial payments, the buyers received incomplete flats, leading to prolonged legal battles and financial strain. This pattern of behaviour among certain builders has eroded trust in the real estate market and highlighted the need for stricter regulatory oversight.
The Assam Real Estate Appellate Tribunal has also noted an increase in appeals from aggrieved buyers, indicating a systemic issue within the region's real estate sector. The tribunal has urged RERA to enhance its monitoring mechanisms and ensure timely redressal of grievances to restore faith among consumers.
Industry experts suggest that prospective buyers conduct thorough due diligence before investing in real estate projects. This includes verifying the builder's credentials, reviewing past project completions, and ensuring that all necessary approvals and documentation are in place. Additionally, buyers are encouraged to engage legal counsel to navigate the complexities of real estate transactions and safeguard their interests.
AREIDA (Assam Real Estate and Infrastructure Developers’ Association) discusses the concern over the negative impact of such malpractices on the industry's reputation. In a recent conference, AREIDA emphasised the importance of ethical business practices and assurance to consumers of their commitment to promoting transparency and accountability among member developers.
However, RERA Assam has yet to announce plans to implement stricter compliance checks and impose harsher penalties on defaulting builders. The authority should also consider the establishment of a dedicated consumer grievance cell to expedite the resolution of complaints and provide timely relief to aggrieved buyers.
While these measures are potential steps in the right direction, their effectiveness will depend on robust implementation and the willingness of authorities to hold violators accountable. For now, many homebuyers in Guwahati remain cautious, hoping for a more transparent and trustworthy real estate environment in the near future.
