Buying a house
is the dream of many people as they invest their hard earned money in buying a
house, and hence to protect themselves from frauds and other problems, they
prefer to buy property from a person who has expertise in it.
The advantage of buying a home from a builder/developer as compared to an agent is that buying a home directly from a builder/developer saves your money, time and energy. Since there is no involvement of an agent and your contact with the builder is direct, you will not have to pay any separate commission to anyone, and in the absence of an agent, you will be directly in touch with the builder to check the construction and other related issues.
Nowadays
many buyers are complaining against the builder for delay in giving the
possession even after getting the hard earned money.
A builder-buyer agreement is signed between a builder and a buyer whenever a person approaches the builder to buy a property or invest in real estate.
As per the rule, a stipulated time should be mentioned in this agreement within which the property/possession is to be handed over to the buyer. When possession is not transferred or delivered by the builder to the buyer within that stipulated time period, it is a delay in delivery of possession by the builder to the buyer.
What are the remedies for buyers in case of delay
in possession?
According to the Real Estate Regulatory Authority (RERA), if the builder is delaying the construction and handing over the possession of the flat, the builder will have to pay 10 per cent interest on the value of the property.
Therefore, if
the builder fails to give you the possession of the flat on time, you can
cancel the agreement due to his fault and you are entitled to get back the
entire paid amount along with 10 per cent interest.
Not only this , under Section 31 of the RERA Act, if the builder delays in handing over the possession to the buyer without sufficient reason, the builder can be imprisoned for up to three years or fined up to 10% of the actual estimated cost of the property or both , and further if the order is not complied with, the builder will also be liable to rectify structural defects arising within 5 years of handing over the possession of the project to the buyers without any charges.
Legal Action Against the Builder in case of Delay:
➤ In case
of delay in possession of the property by the builder, you can file a complaint
with RERA of your respective state to claim your refund along with interest.
However, before filing a complaint, it is suggested to send a demand legal
notice to the builder.
➤You can also approach the Consumer Forum to claim refund of the entire amount paid along with interest, and also claim compensation for mental agony caused by the delay in handing over the possession of the property.
➤If the builder is willfully not handing over the possession of the property and thus delaying and is also unwilling to refund the amount paid by you, you can file a complaint before the Criminal Court against the builder under section 420/405 of the Indian Penal Code, and also for offence of dishonestly non-delivery of property, cheating and breach of trust. If the builder is found guilty, he may be made liable to pay some fine and/or compensation to the home buyer, and may even be sent behind bars.
Supreme Court of India, in the matter of Kolkata West International City Pvt. Ltd. Versus Devasis Rudra, II (2019) CPJ 29(SC) had asked the Builder to repay the money to the home buyer along with a specific interest rate, for a seven years delay in a project, and held that home buyers cannot wait a lifetime for gaining the possession of the property.
However, if
there is a genuine reason for the delay in the completion of the project, the
builder can seek extension of time, and the builder becomes liable only if the
delay is due to his own fault. If the delay is due to a calamity or situation
beyond the control of man, the buyer will not be able to take action against
the builder.
Finally in short, if the builder is delaying in giving the possession then you have the following options:-
👉You can terminate the agreement and demand a
refund, after sending a Legal demand Notice to the builder, or
👉You can continue with the real estate project and
claim compensation from the builder for every month of delay till the
possession of the property, or
👉You can file a complaint against the builder under section 31 of the RERA Act for full refund of the amount paid along with interest, and also file your complaint before the consumer forum.
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