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Legal Remedies Available To A Buyer In Case A Builder Delays Possession

  • -As a person who has paid money to a developer or builder who has then not handed over the property, you have the right to a solution to your problem.
  • -Under a new law, known as the Real Estate(Regulation and Development) Act 2016, you have the right to file a complaint before a special body set up for real estate projects known as the Real Estate Regularity Authority.
  • -If you choose to withdraw from the project, you have the right to be compensated for the full amount you have paid till date along with interest.
  • -If you choose not to withdraw from the project, you have the right to be compensated with interest for every month of delay.
  • -If the builder or developer is not voluntarily compensating you, you have the right to file a complaint before the Regulatory Authority.
  • -You need not compulsorily hire a lawyer to represent yourself. You can appear yourself or even hire a chartered accountant or cost accountant or company secretary to appear before the officer, who functions as a judge.
  • -If you are not satisfied with the decision of the officer, you can file an appeal before the Appellate Tribunal set up under this law within 60 days.
  • -Every state and union territory is supposed to have such an authority and an appellate tribunal.
  • -However, if there is no Regulatory Authority set up in your state, then you can file a case before a civil court or file a civil writ petition before the High Court.
  • -Depending on the situation, some other options include:
  • 1. Arbitration-If there is an arbitration clause in your agreement, then you should refer your case to the arbitrator. Arbitration is a private method of resolving a dispute by referring it to a third party arbitrator.
  • 2. In situations where the builder or developer is purposely not handing over possession of the property in order to keep the money for herself, you can also file a criminal complaint.
  • 3.Consumer court- If you have bought the property for a residential purpose or if the rent from the property is your source of livelihood, you can file a consumer complaint instead of going to the Regulatory authority.
  • -Since choosing of alternative remedies requires in depth analyses of facts and forums, it is always advisable to consult a lawyer before proceeding with any remedy.

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