Delayed possession? Here is how you can take legal action.

Buying a home is one of the most important decisions we make in our lives. Today when the property rates are skyrocketing and it takes almost a lifetime’s earning to secure a home, it has become more important to stress on the importance of buying the right property from the right builder. There have been many recent reports where the builders do not stick to the promised timeline of handing over the completed flat to the buyer and there is an inadvertent delay which causes the homebuyer dearly. So what legal action can be taken against the builder in case of delayed possession? Here is everything you need to know.

When can legal action be taken?

The landmark judgment passed by the honorable court mentioning that all parties involved in housing construction at any stage are amenable to Consumer Protect Act, 1986. It is applicable for the following situations:-

1. Omission relating to housing activity;
2. Delay in the delivery of possession;
3. Defective construction;
4. Faulty construction;
5. Non-completion of construction in the promised time frame.

​​​​​​​​​​​​​​​​​​​​​Legal remedies

To understand the implications of this law better, we need to look at some situations in which the home buyer can seek a legal remedy.

1. If the seller hasn’t executed sale agreement despite receiving the advance amount;
2. If the consumer is charged a higher rate than the rate agreed upon;
3. If the builder and his office haven’t formed a co-operative housing society;
4. If the possession is delayed than the time frame initially agreed upon;
5. If any of the specifications are substandard or incomplete.

Laws related to the matter

In any of the above cases, a consumer can follow the following legal steps as per the Consumer Protection Act. The Real Estate Regulation and Development Act, 2016 also Known as RERA is keeping a tout eye for any discrepancies to regularise the real estate sector.

1. The aggrieved party can send a legal notice to the builders for the delay or other issues mentioned above which is the first step.
2. Following this step, if no resolution has come out, you may file a case in consumer court stating the facts and evidence.
3. You can claim a refund for all the amounts paid to the builder for the project
4. You can claim interest on the amount paid to him and on the damages.
5. You can also file a legal complaint asking for action to be taken against the builder.

Judicial Precedents

We have listed down a few cases and the judgments relating to this matter which could help you understand the legal implications of delayed possession.

In case of AL Lapuriya Constructions v. Marari Poddar, the court ordered the builder to pay a compensation of Rs. 1 Lakh to the consumer as the builder was late in giving possession by 7 to 8 months.

Similarly, in the case of Punit Malhotra v. Parvsnath Developers, the court ordered the developer to pay an interest at 18% to the buyer for delayed possession.

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