In this article, we will discuss about the remedies available with a buyer whose possession of the house/flat is getting delayed because of the builder. The article will discuss about the statute which talks about the remedies, the appropriate forum one should approach etc.

     Uncertainty of possession: Nowadays, the most worrying things about purchasing a property are the uncertainty of possession of the property. While, many builders often make promises and claims about the early grant of possession and often have sample house ready to attract customers into investing a certain amount, the wait for possession is often very long and tiring. 

     Statute: There was no specific statute that provided for a punishment until the passing of the Real Estate Regulation Act (RERA) in 2017. An understanding of contracts and property law along-side decided cases establishes the base for not just compulsory possession but often compensation including the cost of litigation.

        Important point to check when possession is getting delayed: Below are some points which will be important for you to see when the possession is getting delayed –

1.     Check you Contract – Most of the contracts provide an estimated stipulation of the time period for the construction. You should read the contract properly to see for this time period. Often, the builders insert a clever clause in the contract which will help them escape liability. As per the RERA provisions, a contract must mandatorily provide a completion time and the ate of delivery, to enable buyers to reject the deal in case the construction is taking long.

2.     Reasons for Delay – Builders take advantage of many compelling reason like demonetization, which was help to be a valid reason causing delay by the courts. Others reasons like shortage of labour, unavailability of construction material or changes in governmental regulations have also been allowed. However, the reasons for commercial hardship such as an increase in prices of inputs, rejection of construction plans by municipality etc. have largely worked to the disadvantage of builders.

3.     Payment of Compensation under RERA Rules – If the builder causes delay without any justification, and the delay is deemed appropriate by the court, then the court can order compensation of up to 10% of the property price. This order overrides any other clause given in the contract which talks about a minimum penalty for delay.

4.     Refund of Money deposited– In many cases, where the construction has just started or not began, and then the court orders for complete refund of the amount deposited by the buyer. This is done to enable the buyer to invest their savings in buying any other property. Also, under the RERA Rules, builders are under obligation to keep the funds received form the buyers in a separate account, to make the process easy.

5.     Refund of Cost of Litigation – The Court, if satisfied that the complaint of the buyers was genuine and that it caused hardship may also order the builders to pay the entire cost of litigation.

6.     Punishment to Builders – In case, the delivery is getting delayed, builder stands not only to lose the registration of the project but may also be liable to an imprisonment for a term which may extend up to three years or with fine which may extend up to 10% of the estimated cost of the real estate project, or both.

    Appropriate Forum: Under the RERA, there are tribunals constituted which are appropriate forum to approach for any dispute relating to delay in possession. They are located in most states. However, in those states where the RERA is still under process, it is the District or State Consumer Disputes Redressal Forum which will have jurisdiction. 

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