Menu
header photo

LegalSeva

Service in the interest of Justice

Builder Delaying Possession. What is your Right?

Straight to Fact- Everyday in Consumer Courts across the country, more than 50% case in daily causelist  are against builders, real estate projects promoters, Property Developers and new upcoming mushrooming societies that promises consumers to get modern living apart from other high end civic amenities like Gym, Club, recreational centers, Parks, Shopping , etc….

List is endless but soon realty meets the reality and all your hopes of securing the house in time are dashed. It is trying and painful situation for the one who has planned future as per possession timing of the project. And the misery continues.

But not any longer! Thanks to Consumer fora.

Also Read- RERA in Punjab & RERA in Haryana

If the house/Flat/Villa in question is under 20 lakhs then file a case in District Consumer Forum or else State Consumer Commission  up to value of 1 crore, beyond this welcome to Delhi, National Consumer Commission. The Reality Scenario after coming in of RERA has been stringent in protecting rights of the home buyers who have invested their hard money in the projects floated.

Consumer forums, State Consumer Commissions are always inclined in giving justice to the flat owners whose rights are affected by the delay. Delay in possession is but very obvious of Indian Real Estate Industry who is still to recover from demonetization crisis. There are only few real estate projects promoters who stand by their promise and fulfill it. For rest, it is just a marketing gimmick and you are their prey.

The crux of delay in possession matters of flats or apartment is the obligation of builder within a stipulated time as written in contract and its violation leading to deficiency of services but the purchaser should be bonafide one and intended to purchase it for personal consumption, strictly not for commercial selling.

Though RERA has strengthened the position of homebuyers by introducing written affidavit, date of possession in agreement to sell with rate of interest in case of default, affidavit with respect to title of land ensuring it is free from encumbrances, maintaining separate account with bank to complete project and regulation in withdrawal of funds and lastly flouting the rules being made now offence that attracts imprisonment up to 3 years or fine up to 10 percent of the estimated cost of the project or both.

Also Read- Consumer Court- A quick guide for Tricity.

The master clause is of compensation/Penal regarding delay in delivery in RERA.

Some recent Judgments where delay in possession cost heavily to builders  from Google news.

  1. Mumbai RERA directs developer to repay Rs 2 crore to buyer over delay in flat possession.
  2. Chandigarh State Consumer Disputes Redressal Commission has directed real estate company to pay Rs 11 crore to 26 flat buyers.
  3. Punjab State Consumer Commission directed builder to pay Rs 33 lakh for not giving possession in promised time.
  4. As per data collected from Haryana State Consumer Disputes Redressal Commission, of a total of 187 complaints received by the State Commission this year, till October, as many as 116 complaints are against builders and real estate developers.

Also Read- How to Make Complaint under RERA

But don't sleep over your rights and wake up only after much delay has been done. Be responsive from the first day and assert your rights legally in the friendliest manner possible. If you can't do it, LegalSeva will do it.

Seek Compensation from Day 1. Never be shy about it since it is your legal right as said in builder buyer’s agreement. It is expected from home buyers to look for the possession clause while booking any project. It can be started by sending a legal notice or written complaint in appropriate consumer forum seeing the territorial and pecuniary jurisdiction at the first instance only.

Also Read- Legal Notice Before Consumer Complaint

Entitlement for interest - From the period of failure to give possession up to till date, the interest on amount paid can be recovered through consumer court.Even if you are staying outside on rent, that money can also be recovered.Consumer court even allows refund of your entire money if there is a deficiency of service for a considerable period.

Ask what? Even the litigation cost is covered by the consumer courts. In its each order where builder is found at fault and there is a delay in handing over the possession, litigation cost is awarded with order. So you don’t have to worry engaging Top/Best Property lawyers, Real Estate Lawyers, Legal Advisors, and Attorneys & Law Firms, RERA Advocates & Lawyers in Chandigarh, Panchkula, Mohali, Zirakpur.

Builder is escaped only on the grounds of justifiable reasons occurring beyond his control. Some of the reasons where this can be exercised are change of law, administrative conflicts, policy paralysis and force majeure.  Thus builder can at times is not liable for justifiable delay.

In addition to Consumer Court and RERA authorities, consumers can initiate Criminal Proceedings and file regular suit for damages or specific relief if element of fraud and misrepresentation are present and the builder knows from the beginning that he won't be able to deliver the project.

Also Read- Company refusing to pay health insurance? Remedy is with consumer court

 

Don’t let builder squander your hard earned money. Be aware and exercise your rights.

For any specific query on subject related matter call 99888-17966 or write to satish@legalseva.net

 

Go Back

Comment