Action against Builder for Delayed Possession

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It was said in an landmark judgment that “all concerned authorities of any State engaged in Housing Construction activity in any manner are amenable to Consumer Protection Act, 1986 for any act or omission relating to housing activity such as: “Delay in delivery of possession, non-completion of construction within the stipulated time, defective and faulty construction and more”.

When we talk about Consumer Protection Act, 1986, a service provider is liable and is bound by the agreement to provide services to his clients for which he is getting monetarily compensated. So here a builder who constructs a house or hires the services of a contractor to develop a property is engaged in the act of providing service to his customer which makes him liable under Consumer Protection Act.

Few grounds on which a buyer of property can file a case are:
  • Non-execution of relevant sale agreement despite having received a substantial advance amount
  • Charged higher than the agreed amount
  • Did not form a co-operative housing society and handed over to members
  • Delayed possession beyond the stipulated time limit
  • Delivering of a house not complying to agreed specifications, etc.

Below mentioned are the steps to file a consumer complaint against a builder:

  • Send a well drafted Legal Notice to the builder stating your reasons of discontent
  • Await for a response for the stipulated time from the other party
  • On no-response, prepare a petition stating facts and evidences with the help of expert legal advice
  • Approach the Consumer Court and file your petition against the builder
  • In the event of a delay in possession by a builder, there is no time constraint that the buyer has to follow to file the complaint

Further more, in a recent ruling, the National Commission has held that such disputes cannot be termed force majeure, and a consumer would be entitled to claim a refund along with interest and compensation when the builder is unable to complete the housing project in time. However, a builder can neither unilaterally extend the date of possession nor insist on allotting alternate flat or plot to escape refunding the amount.The consumer has the right to refund along with compensation when a builder delays possession beyond the agreed time.

Let us help you, draft legal notice and any other legal document that can effectively help you prevent from being the victim of such fraudulent delay in possession of your house. You can also start by examining every aspect of the delay of possession of your house and other legal consultation with us at Legistify.


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