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POSSESSION DELAYED AND ITS REMEDIES

Hello friends today we shall discuss this common issue which we face while buying a home for our family. The whole process starts with the lucrative advertisements and other promotions which help the builder and promoters companies to attract the prospective buyers. Initially a very rosy picture is shown to the buyers which entices them to invest their hard earned money. So once the initial advance is deposited by the buyer, two situations might arise:-

Firstly, in case of finished project, the buyer can, immediately after a gap of few months as stipulated in the builder- buyer agreement, make the balance payment and take in the possession. In such a scenario there are practically very less chances of a dispute. However the main problem arise in the second situation in which the project is still not started or its in the initial stages of construction. In such situations, the buyer after paying the initial advance amount gets stuck and is depended on the mercy of the builder/promoter for its completion on time. In such type of cases, the builder might also promise the buyer to avail the loan for the balance payment, and assure that the EMI’s of the said loan might be paid by the builder itself till the actual possession of the flat/property is handed over to the builder. However, very often it is seen that the builders initially tend to pay the installments on behalf of the buyer but after sometime they not only refuse to pay the installments on time but also stop the work at site. In such a situation there is two way sword which hits the innocent and honest buyers. On one hand, due to stoppage of the construction work, their dream of enjoying possession is delayed indefinitely, and on the other hand, since builder stops to pay the monthly installments to the bank, the buyers are burdened and pressurized even by the bank to deposit the installments on loan which has been taken in their name.

So just imagine the misery of the innocent buyer?

Now in order to come out of this situation, we will discuss some of the possible remedies which buyer may take resort to in such a given situation:


RERA (REAL ESTATE REGULATORY AUTHORITY ACT)  

With introduction of this act in the year 2017, there is some added sense of security which buyers might feel in case their possession is delayed or their money has been stuck with the builder. As per this regulation, every state shall form a regulatory authority which keeps a check on the matters of the real estate in their area of registration. The builder/promoter has to now get themselves registered with the said authority and to report the stages of work of their sites to it, thus ensuring a kind of regulatory check and preventing the arbitrary working of the said promoters. The buyers also can file a complaint online through the portal designed for the area in which their site is situated to either claim for the compensation on account of delayed possession or can even sought for refund of their advance amount along with interest.

 

CONSUMER COURT

Depending on the value of their project and the territorial jurisdiction, the consumer can also file a case with the District Consumer pleading deficiency of service on part of the builder/promoter as the case may be and can either seek the possession or refund of their amount along with its interest.

 

CIVIL COURT

Generally the action in the civil court is not entertained in case the regulatory authority has been established (under RERA) in that particular area.


ARBITRATION

In case there is an arbitration clause in the builder buyer agreement, in such an event before proceeding further, the parties can take resort to it and try to solve the dispute by appearing before the arbitrator.  However, in case the buyer is not satisfied with the award passed by the arbitrator, then he may approach the civil court to challenge the same.


CRIMINAL COURT 

In addition to the above, in case it is found that that the builder is deliberately withholding the payment of the buyer and using the same for purposes other than in the completion of the project, in such an event the buyer can also file a case of cheating against the builder.


I hope you have understood the topic discussed above and remedies a buyer can resort to. For any further query, you can write to us in the comment section.   

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