In this article, we will discuss about the instances of how a builder can defraud or cheat a buyer, and in such cases how can a buyer file a criminal case against the buyer.

·        When builder cheats you: There are many times, when your builder defrauds you or cheats you by not stating the true facts or by making false promises. In that case, you can file a suit against the builder. The nature of the suit is criminal in nature.

·        Criminal in Nature: A fraud or cheating is criminal in nature, and thus have to be criminal case filed before a court of law under the Indian Penal Code, 1860. That can only be done by the party who is aggrieved, by first filing a First Information Report (F.I.R) to the police authorities.

·        Alternative Remedy: A person can also file a consumer complaint against the buyer on the ground of deficiency of service.  Deficiency of Service covers delay in possession, non-delivery of flats etc.

·        Consumer Courts dealing with the complaint:  Consumer Courts takes these types of matter very seriously. Sometimes, the Consumer Courts have given a huge amount of penalty in cases of deficiency of service. It has also assured the buyer that the possession of the flat will be given at the earliest, or entire amount will be refunded.

·        Procedure to suit a criminal suit against the Builder: Below is the procedure –

1.     Legal Notice – The aggrieved person can send a legal notice to the builder. The builder should answer the legal notice with his/her reply to the issue. If the builder doesn’t give answer to the notice, then the buyer can file a complaint and approach the criminal courts.

2.     Police Complaint – If the builder doesn’t respond to the legal notice, then the buyer should file a police complaint.

3.     Criminal Complaint – After filing the police complaint, the buyer can file a criminal complaint to the metropolitan Magistrate.

4.     Criminal Courts – After complaining to the police authorities, the buyer should go directly to the criminal court and for filing a criminal suit.

5.     Proof – The complainant i.e. the buyer should also present the proof of default or irregularities done by the builder while executing the construction of the building, to prove its point in front of the court.

6.     Appearance – Both the parties should be present at the time of hearing because it is a very fat trial. In case any party doesn’t appear, a bailable or a non-bailable warrant can be issue against them.

·        Ways in which the Builder can Defraud/Cheat you: A builder can defraud or cheat you in various ways. Below are some instances –

1.     Fraud in booking – A builder can defraud you when you are booking a flat by not stating the correct facts like the area of the flat, quality of the raw materials used, floor map, etc.

2.     Cancellation of Booking/Project - After you have booked the flat, the builder sometimes cancel your booking or even cancel the construction of whole project by giving some lame reason.

3.     Creation of Third Party Interest - A builder sometimes creates a third party interest with your flat, like giving it for mortgage, lease, licence etc.

In the above situation, you can file a criminal complaint against the builder of cheating and fraud.

·        Opinion of Indian Courts: Bombay High Court recently said that cheating by developer is a criminal offence, and it cannot be termed as disputes of a civil nature. 

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