5 min readNew DelhiUpdated: Aug 21, 2026 04:22 PM IST
A Kerala consumer commission held that a builder’s failure to construct a house according to agreed and accepted standards amounted to a deficiency in service and an unfair trade practice, and directed it to pay Rs 20 lakh towards repair costs and damages and Rs 5.25 lakh as compensation for mental agony and costs.
The order came after the homeowner, who had paid Rs 42.63 lakh for the house, was allegedly left with serious construction defects, including leaking plumbing, dampness and seepage, cracks in the walls and terrace, peeling paint, damaged kitchen cabinets, poor waterproofing and defective electrical work.
President S K Sreela and member Stanly Harold of the Kollam District Consumer Disputes Redressal Commission noted that the defects were so severe that the homeowner and his family were forced to arrange alternative accommodation, as the house was unfit for occupation and posed concerns relating to their health, safety and mental peace.
“Due to the severe nature of the defects, the complainant is currently unable to reside in the said house. The building is unfit for occupation and poses serious threats to health, safety and mental peace. The complainant and his family have been forced to arrange alternative accommodation, which has resulted in further financial burden and emotional distress, and are still waiting to resolve the issues, despite multiple assurances and repeated follow-ups by the complainant,” the August 10 order read.
Defect discovered soon after possession
The man claimed that he engaged the builder to construct a residential house in Kalliyoor, Thiruvananthapuram, under an agreement dated January 13, 2022. Under the agreement, the Rs 32 lakh house was to be completed within six months.
However, the builder completed the construction only on January 20, 2024, nearly two years after the agreement, and collected a total of Rs 42.63 lakh, according to the complaint. The housewarming was held on January 21, 2024.
The complainant claimed that within months of taking possession, he began noticing serious problems with the house, including a leaking bathroom and plumbing pipes, broken tap fittings, damaged washbasins, peeling paint, cracks in the walls and ceilings, uneven flooring, damaged kitchen cabinets and water seepage through windows.
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He also alleged that electrical faults, including malfunctioning switches, sparks and short circuits, posed a risk of electrocution and fire. The commission further noted complaints about poor waterproofing, water seepage and deterioration of the terrace and front pathway.
The man claimed that he repeatedly asked the builder to fix the defects, but no effective action was taken. He also said he had to spend his own money to complete some unfinished kitchen work.
‘Defective, substandard’ construction
The commission appointed an expert commissioner and an advocate commissioner to inspect the house. The expert concluded that “the construction work carried out is defective and substandard”, that the materials used were inferior and that immediate repair and replacement of defective work and materials were necessary.
It found that the complainant and his family had been residing in the house for only about two years and also noted that the builder did not appear before the commission or file a defence, following which the matter proceeded ex parte (without hearing the other side).
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The commission found that the builder had entered into an agreement with the complainant and performed the construction work not in accordance with the normal construction standards and even received an excess amount from him in contravention of the amount cited in the agreement.
“As per Exhibit C1, immediate rectification and replacement of defective works and materials is necessary, and the contractor is responsible for the observed defects and deficiencies. The non-fulfilment of the obligation on the side of the opposite party (builder) amounts to deficiency in service and unfair trade practice,” it added.
Accordingly, the commission directed the said builder to pay the complainant Rs 20 lakh for the necessary repairs and damages and Rs 5 lakh as compensation to the complainant for the mental agony and inconvenience caused to the man due to the defective construction of his residential building. The builder was also directed to pay Rs 25,000 as costs of the proceedings within 45 days.
Takeaway
The ruling highlights that a builder can be held liable when defective construction and substandard materials leave a homeowner facing serious safety concerns, financial losses and the need to arrange alternative accommodation.
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For consumer-related grievances, individuals may contact the consumer helpline in their respective states and Union territories (Kerala: 1800-425-1550) or call the National Consumer Helpline at 1915 for assistance.
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