Confederation of

Real Estate Developers
Associations of India

Initiatives

Grievance Redressal Cell

There is an inescapable need for establishing an improved connect between the developers’ / builders’ community and the buyers/purchasers at large, so as to build an environment of mutual trust and confidence between the two. This would no doubt go a long way in enhancing the dignity of real estate sector operation and its social acceptability. Among the various initiatives towards that, effectively addressing the grievances of purchasers/buyers is an important one. CREDAI Bengal is most suited to do whatever is feasible in this arena.

In realization of the importance of addressing grievances from buyers/purchasers against members of CREDAI Bengal, the latter has provided for formation of a Mediation Committee under the Code of Conduct for members. Clause 27 of Code of Conduct on “Mediation Committee” reads:

“There shall be a Mediation Committee of Credai Bengal to address complaints grievances or dispute of purchasers against developer members. The Mediation Committee shall not entertain or continue with any matter or issue which is sub judice or pending before any Court, consumer forum, arbitrator or other judicial or quasi judicial body/authority. The Mediation Committee shall wherever possible make efforts to resolve the matter by encouraging an amicable settlement between the parties. If however, such settlement is not made, the Mediation Committee shall express its view on the subject matter. Each member of Credai Bengal shall irrevocably and unconditionally agree to abide by and comply with the views of the Mediation Committee in respect of any complaint, grievance or dispute referred to the Mediation Committee regarding all the projects undertaken by the Member and/or other Group Companies. Non-compliance shall be deemed to be a violation of this Code of Conduct and action may be taken against such member including suspension and expulsion. The detailed guidelines and/or procedure relating to the Mediation Committee and its functioning shall be prepared and modified from time to time by the Managing Committee. It is expressly declared that proceedings before the Mediation Committee and/or its views are not intended to be and shall not be construed as arbitration or conciliation under the Arbitration and Conciliation Act, 1996 and/or as any judicial and/or quasi judicial proceeding”.

From a mere perusal of the above Clause of the Code of Conduct, it is quite evident that the Mediation Committee is a non judicial body and any proceeding drawn up by the same shall be deemed to be of non judicial in nature. The intention of this Committee has always been to endeavour to resolve disputed matters through the process of mediation and reach an amicable settlement between the member developer/builder and the complainant.

It is pertinent to mention that CREDAI Bengal has been quite successful in facilitating amicable settlement of disputes between its member developers and their respective customers and/or purchasers. This initiative of CREDAI Bengal has not only won the trust of the general public but has also been well appreciated by the Consumer Affairs Dept, as this has led to substantial depreciation in the number of cases filed before the Consumer Forums.

The strict vigilance and routine follow ups on the transparency quotient of the member developers has also contributed significantly to the success ratio of the Mediation Committee.