Insights & Research
Legal Research Associate
When a person is facing any issues of the possession of a property being delayed by the seller, the aggrieved can file a complaint against the builder as per the Consumer Protection Act,1986 to the forum under whose jurisdiction the property or the developer's office lies.
Whenever a builder delays the possession, you need to send legal notice to the builder under the Consumer Protection Laws. If still, the builder is not bothering your legal notice or not giving the relief, you can approach and proceed to file a consumer complaint against the builder.
In exercising the provision under the Consumer Protection Act 2019, the central government has notified the consumer protection (jurisdiction of District commission, the state commission and National Commission) Rules, 2021.
It provides three redressal methods based on the amount of compensation. The three mechanisms for redress are as follows:
The key responsibilities of the RERA are;
● Ensuring Disclosures of Real Estate Projects by Promoters
● Real Estate Projects Registration
● Real Estate Agents Registration
● Complaints Redressal
● Make suggestions to the relevant government on issues concerning the growth and promotion of the real estate sector.
● Appointment of one or more Adjudicating Officers for adjudication of claims.
Under Section 18 of the RERA Act, if the possession of the property is delayed on the part of the builder, a buyer can terminate the agreement and request for refund. The builder is required to refund the total amount buyer pays with interest. Section 18 also permits a buyer to continue with the project and seek reimbursement from the builder for each month of delay until property ownership is obtained.
The rate of interest payable by the builder and the format of such complaint are specified under the RERA Rules that vary from state to state. Consumers can file a complaint against the developer in case of delay in possession under Section 31 of the Act. According to Section 31, any aggrieved person may file a complaint with the regulatory authority for violations of the said Act. The complaint can be filed by the homebuyer and the Association of Allottees. A complaint filed under the RERA must be in the form stipulated by the various states' laws. The complaint can be filed concerning a project registered under RERA, within the prescribed time limit, for violation or infringement of provisions of the Act or the rules or regulations framed under RERA.
RERA Act clears out each case typically within 60 days, and its court fees vary from Rs. 1,000 to Rs. 5,000 for different states with the litigation costs within Rs. 25,000 to Rs. 75,000 (with execution).
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