Delays in ownership of flats are an everyday issue. While investing in India, keep in mind that you must seek legal counsel if you have any problem with the real estate builder/developer. We offer legal services to NRIs who have invested in properties in India and are having issues in possession of the property. Claim the Refund on the investment and resolve your issue without travelling back and forth to India.
1. DELAYED POSSESSION DISPUTE WITH
THE BUILDER
If you’re amongst the lakhs of buyers who have invested a large chunk of your hard-
earned money into a residential or commercial project and the builder is nowhere close
to finishing it anytime soon, here are a few recourses in which a property
management lawyer should be able to guide you.
The usual track record of timely completion and possession of flats or plots has been
especially poor in metropolitan cities like Mumbai, Delhi, Pune, Gurgaon, etc. The list
of delayed projects includes prominent builders like DLF, Unitech, Jaypee and Raheja
Developers.
The Apex Court has recently adjudicated that a buyer/allottee shall be covered by the
definition of “consumer” under the Consumer Protection Act, 1986. It has been held
that since the allottee doesn’t have a say in the business, any loss accrued to him
because of the promoter, shall be compensated by the promoter himself.
Further, in another recent case, the National Commission for Consumer Disputes
Redressal held that in such cases, the allottee is entitled to refund, interest and
depending upon the facts of the case any other compensation that the Court deems fit.
If you’re looking to invest in a new property, here are a few points you should
consider before you invest and also consult a property management lawyer-
1. There are less chances of a project getting stalled due to lack of funds if private
companies or investors fund it. It is advisable to conduct the purchase through
an attorney.
2. The buyer/allottee has the right to ask for construction schedule while making
payments. If you haven’t been provided with one or the builder hasn’t asked for
payment lately, there might be a chance of the project getting stalled.
3. The buyer has the right to ask for a copy of project drawings, stamped by the
municipal corporation. In fact, you can also ask for plans and documents of
common areas after the possession of the property.
4. The buyer can claim refund along with the interest in case the promoter fails to
comply with the contract or the sale agreement.
If you have faced a similar situation in the past, or are currently accruing losses
due to the negligence of the promoter/builder, you can redress your problems as
follows –
1. Before you approach any Tribunal, Authority or Court; serve a legal notice with
the help of your property management lawyer, to the builder stating your
grievances and the relief you are seeking.
2. 2. Once the legal notice has been served, wait for a reasonable period of time for
instance, thirty day.
3. In case you receive no response from the builder within a reasonable time or,
the builder has denied relief, you can approach higher authorities.
4. The District, State and National Commission shall only accept complaints filed
within 2 years from the date of the action or the cause of action under the
Consumer Protection Act, 1986.
5. You can approach the District Consumer Disputes Redressal Commission with
an application to hear your case.
6. The District Commission shall after examining the facts of the case, will pass an
order, within three months. If you’re not satisfied with the order of the
Commission, you can appeal before the State Consumers Dispute Redressal
Commission.
7. Remember to approach the State Commission within 30 days from the date of
the receipt of the District Commission’s order.
8. If, you feel that the State Commission’s order hasn’t passed a just order, you
can further approach the National Commission with an appeal against the order
of the State Commission by further consulting your property management
lawyer.
9. An appeal before the National Commission should be filed within 30 days from
the receipt of order of the State Commission.
10.If your problem has not been addressed properly by the National Commission
as well, you can approach the Supreme Court of India by way of a Civil
Appeal/Special Leave Petition seeking relief again by consulting your property
management lawyer.
11.However, an appeal can be made before the Supreme Court within 30 days
from the receipt of the National Commission’s order.
12.About all these nitigrities a common man is usually unaware off, hence a
property management lawyer can help you.
You can also seek relief under the Real Estate (Regulation and Development)
Act, 2016. Under this legislation, the steps for redressal are –
1. If the promoter/builder hasn’t delivered what he had promised, you can
approach the Real Estate Regulatory Authority by consulting your property
management lawyer which is empowered to pass an interim order and impose
penalties. It has the same powers as that of a Civil Court.
2. If your dispute hasn’t been resolved properly, you can approach the Appellate
Tribunal within 60 days of receipt of the Regulatory Authority’s order.
3. You can further file an appeal before the High Court against the impugned order
of the Appellate Authority.
4. At last, if all the above authorities have failed to redress your problem in a fair
manner, you can approach the Supreme Court and seek relief again with hiring
a property management lawyer.
3. BIBLIOGRAPHY FOR THE DISPUTE WITH BUILDER ARTICLE
1. http://timesofindia.indiatimes.com/city/mumbai/Builder-has-to-pay-
compensation-if-project-is-delayed/articleshow/47143531.cms visited on 7th
March, 2017 at 1830 hours.
2. Bunga Daniel Babu v. M/s Sri Vasudeva Constructions [2016(4) KCCR 358]
3. The Real Estate (Regulation and Development) Act, 2016 -
http://www.indiacode.nic.in/acts-in-pdf/2016/201616.pdf visited on 7th March,
2017 at 1830 hours.
4. The Consumer Protection Act, 1986 -
http://ncdrc.nic.in/bare_acts/Consumer%20Protection%20Act-1986.html visited
on 8th
March, 2017 at 1645 hours.
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