Consumer Centricity as a Delivery Strategy for Assets in the Real Estate Sector: An Analysis of the Framework and Interpretation of Law

Abstract

Consumer centricity (C-C) in the Indian real estate sector has gained prominence since the introduction of the Real Estate (Regulation and Development) Act in 2016. For a growing economy such as India’s, with significant dependence on the construction industry to catalyze economic development, real estate consumerism is of vital importance to spearhead growth in the construction industry. This study critically examined the positioning of consumers in the Indian real estate sector over the years and to date in order to identify areas requiring interventions. Within the framework of the law, key factors defining and contributing to consumer centricity with regard to the delivery of real estate assets were identified. Various real estate sector–specific statutes were traced back along a timeline; they were assessed for the presence of the identified consumer-centric factors. The changes in legislative intent over time were coupled with timely judicial interpretations of laws in courts and regulatory forums. Lastly statutes of significance to real estate asset delivery were probed for inherent loopholes in their frameworks. The growing impetus to consumer centricity both in the making and interpretation of real estate laws was clearly established in the present study. However, existing laws of importance to real estate asset delivery were identified to be contributors to the creation and preservation of an inherent imbalance in the design and power structure of the sector, to the detriment of consumers of real estate assets. The findings undoubtedly indicate that to stimulate growth in the construction industry, the need of the hour is to place consumer centricity at the heart of affairs through the correction of inherent loopholes in the framework of law governing real estate asset delivery.