The real estate cases wherein builders or purchasers, causing unreasonable delay in handing over the possession of the property are on the rise. The builders refused to hand over the property even after the buyer has paid the agreed amount. The buyers are left in a lurch without any affirmation whatsoever.
It happens so often that the builders don’t abide by their own builder-buyer agreement.
Nevertheless, it does not mean that the buyers or consumers are left unprotected by the law. The Consumer Protection Act protects such Consumers who fall prey to such situations.
When can you take legal action against the builder?
You can take legal action the builder in the following cases:
1. The builder has used poor quality material or substandard products to construct the project.
2. The builder does not have proper permits by local authorities.
3. The builder has built the project on the illegally acquired land.
4. The builder has committed any fraud in booking the project.
5. The builder changed land use, layout plan, as well as structures without approval.
6. The builder is charging hidden charges.
7. The builder has cancelled the booking after getting the booking amount.
8. The builder is causing a delay in delivery of possession.
9. The builder has created a third party business or interest in the flat allotted.
10. The builder is not providing a Completion Certificate (CC).
What legal proceeding can be taken against a Builder?
I. Send a legal notice: It is crucial to send a legal notice to the builder for delay in possession of the property through the professional property lawyers in India.
II. File a complaint/case in consumer court: Under the Consumer Protection Act, 1986 ‘deficiency in service’. The Act lays down that consumer dispute redressal forum the buyer can file a consumer case. The compensation for delay in possession can be claimed even if the possession is delayed by a day. The Act does not specify any delay period for filing a case.
- A complaint can be filed in a District Commission for claims up to Rs. 20 lakh.
- A complaint can be filed with the State Commission for claims between Rs. 20 lakhs to 1 Crore.
- One can approach the National Commission for claims more than Rs. 1 Crore.
III. Claim Refund of the Amount paid to the builder: As a buyer, you can claim a refund for the property if the delay in possession of property delivery is too long. In this case, one can directly file a civil case.
IV. Claim Interest: Most of the states have special provisions to protect the interests of the purchasers.
V. File a Criminal Case: One can also file a criminal case against any fraud committed by the builder/developer.