You would have taken a flat, made progress towards payment and arranged your life based on the expected date of handing over. As time goes on, if the builder provides a further revised timeline, but you find yourself still renting and servicing a housing finance facility, what is your best option?

RERA Lawyers (The Real Estate (Regulation and Development) Act, 2016) prescribes various obligations on the promoter and enables certain classes of allottees to file grievances. Your position will depend on: the date of handing over stated in writing; the amounts paid and your desired relief. 

What Can You Claim When Possession Is Delayed?

Section 18 covers the case when a promoter does not complete and deliver possession as promised. In such an event, if the purchaser elects to walk away, they can claim their money back along with statutory interest. Alternatively, they can continue and demand monthly interest from the date of default till the date of delivery of possession. 

Assume that a purchaser in Noida has discharged the bulk of his consideration towards a flat. When the development is near completion, the purchaser will likely wish to take delivery of the property, so the relevant remedy would be to claim delay interest. On the other hand, if the family wishes to relocate, then a refund may be the course to explore.

Which Documents Make a Builder Complaint Stronger?

You should be able to establish an approximate sequence of events. From the agreement for sale, note the intended date of possession (and whether there's any period of delay), and the instalments due. From the allotment, you'll know the flat number. Your cheques and/or bank accounts will indicate the sum(s) paid and their dates.

Retain all demands from the developer, communications regarding a new completion date, and any proffers of possession. In the case of absent facilities, obtain the sales brochure and record which was applicable at time of purchase. Dated photos and other inspections may also prove useful.

How Do You Choose the Correct Forum?

Under Section 31, any person who feels wronged may file a grievance under the Act, Rules or Regulations. Typically, a RERA complaint would need to be made before the concerned RERA cell (state-wise). Visit the website to find the appropriate application form, fees and required documents. 

The SC has clarified that the RERA Cell is competent to determine refund and interest (including for late handing over of possession), whereas the Adjudicating Officer would consider awards payable under the Statute. You may wish to raise both these prayers with your advocate, and they will advise on the manner in which to do so. 

Can Legal Advice Help Before You File?

Yes. Your solicitor will be able to contrast the sum sought by the builder against your contract, consider any registered project information (including variations), and advise of the implications for you. If a further sum is included in the possession correspondence, they can pinpoint the relevant contractual term relied upon and consider its application.

Where there is an offer from the developer to settle, you should look at both the repayment terms and any waiver given. If the repayment is staggered, this may give rise to concerns re breach. Be aware of any requirement to lift the current dispute at point of signing, and consider the timing of this and consequences of failure to pay.

What Happens After a RERA Order?

Ensure you note the relevant directions and timelines as set out in the written order. Where a promoter fails to comply with a direction within the stipulated time, s.40 enables the authority to take action to enforce or recover the same, as appropriate. Any subsequent application will need to refer to the relevant order(s), balance due and any sums paid towards that. 

As a rule, an order may be challenged before the REAT within 60 days of being served. The REAT has discretion to extend this period if 'sufficient cause' is shown. Furthermore, a promoter seeking to file an appeal would be required to make the requisite statutory deposit. 

Frequently Asked Questions

1. Are there any provisions for group complaints? 

Eligible buyers who have a common concern can consider lodging a joint complaint via the Buyers' Association, subject to the provisions. This will also impact the type of relief available. 

2. I live outside India. What happens? 

It is not a ground to disqualify you from lodging a complaint. You will need to ascertain the requirements to sign, engage a proxy and appear before the Authority. 

3. The sales material stated X, but I was misled.

Section 12 could be invoked where a purchaser has relied on an untrue representation in the sales material to its detriment. Preserve the sales material and evidence of payments made. 

4. My project has not been registered. 

Determine if the project was one requiring compulsory registration. It may fall under an exempted category or alternatively give rise to another contravention. 

5. I have taken over my apartment. Are there still things I can complain about?

You can notify the promoter of any defect(s) falling within the relevant clause within 5 years from date of delivery. Under Section 14, the Promoter must remedy such defects within 30 days of receiving a notice upload.

6. Can the Promoter revoke my Allotment? 

Subject to the Agreement for Sale. However, where the Promoter seeks to withdraw the Allotment contrary to the Agreement, in its own discretion and without adequate justification, the Allottee may seek the intervention of the Authority. 

7. Both the Co-owner and I have executed the Agreement.

Provide your legal advisor with copies of the Agreement and Allotment. Depending on the process adopted by the Authority and other factors, it may be prudent for both to submit a complaint.

8. If I take up the property, can I still get interest for the delay?

Taking up the unit is unlikely to conclusively end all matters between the parties. Consideration will be given to the date of taking up, previous communications and the content (if any) of a deed of release. 

9. Will a Site Inspection be useful? 

There may be instances where the Site Inspection exposes deficiencies in the progress of works or omission of facilities. With appropriate dated images and a record of findings, these can be linked to the Builder's representations.

10. What do I need to take to the initial meeting with the Lawyer?

Agreement for Sale, proof of payments and any pertinent communications. A summary of key dates, grievances and desired outcome will facilitate the Lawyer's evaluation of the matter.

Conclusion

If you seek title to a property, a money refund or wish to take action on a judgment, RERA Lawyers can assess your file and advise as to the appropriate course. This can also be referred to Advocate BK Singh.