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Jan 31, 20233 min read

My Builder Is Delaying Projects What To Do?

It becomes incredibly stressful to spend one's hard-earned money on buying a house, apartment, or other project and not receive it on time. This ongoing issue has been affecting the real estate sector for years. Thus it is one of the reasons which led to the creation of the Real Estate Regulatory Authority (RERA), a sector-specific forum by the government.

The RERA has given buyers more power, but the recent realization that they can contact numerous forums like National Company Law Tribunal (NCLT) & National Consumer Dispute Resolution Commission (NCDRC) has prompted panic among negligent builders and chaos in the real estate industry.

Legal Remedies Available to the Buyers

  • One can submit a written complaint to the proper dispute resolution forum if he purchases a project and the builder continues to delay giving possession of the project.

  • - One can also file a complaint at the RERA in their respective states and claim their refund along with interest or damages.

  • Under the RERA Act, a buyer can file a suit and issue legal notice against the builder for delay in the project.

Government Initiative against Negligent Builders

The Government has introduced three forums that the aggrieved project buyers can approach to resolve their grievances. They are:

  • Real Estate Regulatory Authority (RERA):

  • RERA is a court specifically designed to handle disputes that arise in the sector of real estate.

  • It enables the buyers of the project to receive a full refund of their payment along with interest or monthly interest until the builder hands over possession of the project.

  • Each lawsuit under the RERA Act is usually resolved within 60 days. Its court expenses range from Rs. 1,000 - Rs. 5,000 depending on the state, with litigation expenses ranging from Rs. 25,000 - Rs. 75,000. (with execution).

  • Any claim amount may be the subject of a complaint under the RERA Act, but a complaint cannot be lodged if the certificate of occupancy has already been issued.

  • Consumer Forums:

  • The Consumer Protection Act of 1986 authorizes customers to complain against the builder regarding "delaying in service of the project."

  • According to this act, buyers can directly file complaints under the dispute forum for claims of up to Rs. 20 lakh, in the State Consumer Dispute Resolution Commission (SCDRC) for claims of between Rs. 20 lakh - Rs. 1 crore, and the NCDRC for claims of more than Rs. 1 crore.

  • It allows the buyers to receive refunds with interest or delayed possession in exchange for compensation for psychological harm, legal costs, etc.

  • According to the statute, the Consumer Forum roughly requires one or two years to resolve a matter and charges between Rs. 2,000 - Rs. 5,000 as court fees.

  • The District Forum's cases usually cost between Rs. 10,000 and 20,000, roughly Rs. 30,000–60,000 for SCDRC and Rs. 60,000–2,000,000 for NCDRC..

  • National Company Law Tribunal (NCLT):

  • Under the 2016 Insolvency and Bankruptcy Code, the buyer has the right to initiate insolvency proceedings if the builder is unable to complete and causes a delay in handing over the real estate project.

  • This well-known statute, which has the National Company Law Appellate Tribunal (NCLAT) as its appellate authority, resolves disputes for registered companies with poor financial situation with a contended amount ranging from Rs 1 lakh.

  • According to the statute, it usually takes 9-12 months to get a verdict.

  • The court costs are Rs. 25,000, and the litigation costs range from Rs. 60,000 to Rs. 1, 50,000 for individuals and Rs. 30,000 - Rs. 50,000 for NCLT Groups.

Benefits of Filing a Case in RERA vs. NCDRC

RERA is a special court dedicated to disputes relating to real estate. As a result, it is anticipated that cases will be resolved much more quickly. The NCDRC, on the other hand, is a consumer forum with authority over all consumer disputes with no prescribed time period for delivery of judgment, with no power to imprison the builder etc.

You will need a lawyer to initiate complaints, file suits, and other legal procedures. If the buyer wants to file a case against the builder for delay in the Project in Delhi, then top criminal lawyers in delhi can be appointed. Likewise, property lawyers in Mumbai can be assigned if cases are filed in Mumbai.

You can talk to a lawyer through Lead India Law. Lead India Law provides access to free legal advice by providing you with the opportunity to ask a legal question free online.

Call Us: - +91-8800788535




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