What will a buyer do if project delayed for more than 1 year?

Q: Buyers are not aware of their rights in cases of project being delayed by builders. If some one buying any ongoing project & the possession got delayed then what a buyer should do ?

Tushar Surendren, Delhi

19th November 2014

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Replies (3)

Dear friends, i feel one must see the approved layout plan, approved building plan, ownership documents, carryout search, commencement certificate, etc., before investing in a property. You should also buy property only from reputed builders after seeing their past real estate projects. In case you want to invest in Indian real estate sector which is booming at this moment, I would like to recommend you 'The Aranya Project' by Unnati Fortune Group based in Noida, which is offering great luxurious apartments with all modern amenities.

Abhay Bhardwaj,

8th April 2015

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Abhay Bhardwaj,

7th April 2015

Comment

Hi Tushar,
As per my knowledge, recently, CREDAI recommend strongly to developers in the NCR to complete their existing projects before starting new ones. Definitely it is a good step taken by CREDAI. Perhaps, the developer fellowship needs to take the indication. Till that happens, buyers need to be aware of their rights.

Akash Kanojia, Delhi

19th November 2014

Comment

Now a days delay in project, buyer paying huge tax & builder or developer not listening to the buyer is becoming a common issue in India real estate market. Suppose buyer is following the construction link payment plan or down payment plan of a project , paying everything at right time by taking loan then why should the buyer will wait for more than 1 year to get his/her home. Does bank negotiating or giving any concession on EMI?? No definitely not.

Raj Roy, Delhi

19th November 2014

Hi Tushar,

According to me,buyer should send the developers a legal notice. On 19th May, 2014 the Competition Appellate Tribunal upheld the 2011 order of the Competition Commission of India holding a reputed developer guilty of abusing its dominant market position with regard to a residential society in Gurgaon.

James, Delhi

19th November 2014

Yes , I agreed with you. There are a lot of builder buyer dispute cases still pending in court. This delay in possession is likely a known issue with almost every buyer. Builder blaming buyers for not following payment schedule & buyers blaming builder for paying huge tax.

Richa, Delhi

19th November 2014

Hi Tushar,

In case of undue delay, the buyer can also file a complaint before the Competition Commission of India if the builder is a dominant entity in the market and using his dominant position to the detriment of the buyer. If the buyer is over-burdened by the excessive hidden charges in the buyer builder agreement, the buyer can file a civil suit in a civil court.

Vibhor, Delhi

19th November 2014

Hi Tushar,

According to me,if a project is delayed, surely there is more than one buyer involved. Try getting together with local action groups that have a common goal. Also, try to understand the stage of construction at which you chose to get in. Was it the Pre launch stage when you put in your money and the approvals had not come? You should be careful about that.

lekshmi.sanjeev@ymail.com, Delhi

20th November 2014

Hi Tushar,

In my point of view, it is advisable for buyers to get a thorough understanding of the payment scheme they are going to follow. In some cases builder showing subvention scheme to the buyer & later on builder saying that RBI has banned subvention scheme .

James, Delhi

20th November 2014

Hi Tushar,

But the truth is RBI was unhappy about the fact that , banks were making an up front payment to the builders & putting their money at risk. The home loan disbursal should be linked with the stages of construction of a building , so that the money loaned by the bank does not get locked up in case of any dispute between the loaner & developer. This scheme is very much helpful for buyers but developers were finding it difficult to raise funds.

Prem Sharma, Delhi

21st November 2014

Hi Tushar,

According to me, if the property is under construction, ask for approval of drawings and the plan of the project. You would know that the property is to be built on undisputed land. Also, make sure the carpet area with area left for balconies are marked separately. Price of the property including the proportionate price of common areas and facilities should also be indicated separately and the intervals at which installment may be paid.

Vibhor, Delhi

21st November 2014

Hi Tushar,

As per mu knowledge, check for building by-laws in the area to verify any issue with setback, side setback and height. Confirm with the builder the finance related issues like transfer fees, stamp duty and registration charges to be paid on purchase of the property as well as outgoings to be paid for the property. This will help you to manage your budget.

lekshmi.sanjeev@ymail.com, Delhi

21st November 2014

Hi Guys,

In my point of view, normal people they don't have that much knowledge to check or verify these above said documents. If even they will go to register office or municipal office it will take a long time for them. So it will be better to save energy & time ,buyer should engage one advocate or lawyer to check/verify all needful documents.

Neha Srivastava, Delhi-NCR

22nd November 2014

Hi Guys,
But my question is what are reasons of delay? If you will discuss about this with builder he will give you number of excuses. Starting from legal to buyers not paying money in right time. So the actual reason may not seen to the buyers.

Surabhi, Delhi

22nd November 2014

Hi Tushar,

In my point of view, the main reason of delay is , some developers try to sell property even before they have obtained the license to do so, some other mis-manage their cash inflow, others go overboard with their expansion plans. And there are some buyer who will buy lands/plots from buyers money. They will get money from one project , in the mean time they will buy plot for another project

Shivshankar, Delhi-NCR

22nd November 2014

Hi All,

In my point of view, in these cases of delay in delivery of possession by the builder, the legal options that are available to the buyer are to file a consumer complaint or file a civil suit against the builder for refund of the amount paid to the builder and the interest thereon. While taking this step, discuss with a lawyer or local advocate . Engage the lawyer to do all legal work for you.

Bhuvan, Delhi-NCR

23rd November 2014