Consumer Complaint – Defects in the Flats construction – Joint liability of Developer & land owners
The appellants owners had joint venture agreement with respondent no.2 for development of the land and construction of flats. The owners executed irrevocable power of attorney dated 6.7.2013 in favour of the developer. On that basis, the Developer executed sale agreements with home buyers. In 2014, the Power of Attorney was revoked but JVA was continued.
The home buyers – complainants filed consumer complaints against the owners and the developer for unfair trade practices and deficiency in service.
HELD that the owners cannot escape their contractual obligations by unilaterally withdrawing their agreements when the rights of third parties like home buyers are involved. The cancellation of Power of Attorney afterwards and continuation of JVA does not absolve the owners of the land from the responsibility with the builders. This will have far reaching consequences in the real estate market.
