Can I Claim Compensation From The Builder In A Delay in Delivery Of Flat Possession Matter?

I have booked a flat on Dec 13 with DSKDL Pune, with an agreement to sale in Jan 14. It was under construction and possession was committed in Dec 16. The same is mentioned in agreement to sale. In case of delayed possession, as per agreement, it ... Read More

I have booked a flat on Dec 13 with DSKDL Pune, with an agreement to sale in Jan 14. It was under construction and possession was committed in Dec 16. The same is mentioned in agreement to sale. In case of delayed possession, as per agreement, it is committed that I can cancel the agreement and can claim my amount (without govt charges and taxes) back with 9% ROI. There is no clause for any other compensation in case of delayed possession. On the other hand when it comes to me as a buyer defaulting for payment then I am supposed to pay an interest of 18 %. I have not got the possession yet and now builder promises it by Mid 2018. The project is registered with Maharashtra RERA. To the best of my knowledge as per RERA, the ROI should be same in case if any one of the parties defaults, i.e. Builder for possession and buyer for payment. Q1. I want to claim compensation of 18% of paid amount. Legally am I in a position to claim it irrespective of clauses of the agreement? Q2. If yes then what is the way out to do that?
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Answer (1)

Team Legistify

Team Legistify

  • Sector-1, Noida

Yes, you are entitled to claim compensation in case of delayed flat possession under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, or commonly known as RERA. 

Section 18 lays down that in case of a delay in possession where the dates were specified by the promoter at the time of the sale of the flat, but the possession was not delivered by the builder, the allottee or home buyer is entitled to recover interest from the promoter at the prescribed rate. For this, the home buyer can file a complaint under RERA against the builder with the RERA Authority of the State in which the property is situated. 

A complaint against the builder begins with sending a legal notice to the builder with the help of a RERA advocate in India, to ask the builder to refund the amount paid to the builder, along with interest from the date on which the delay in possession began. The rate of interest is currently 12% and 18% when the builder delays possession even after the order of RERA.

READ: Timeline Of A Complaint Under RERA Against A Builder

However, an important thing to keep in mind is that RERA is not notified by all the states. In order to claim compensation from the builder for delay in delivery of possession when RERA is not notified by the state, you can file a consumer complaint against the builder.

A consumer complaint against the builder is filed on the grounds of deficiency in service and you can hire a property lawyer in India to file your consumer case in the appropriate consumer forum. There are 3 types of consumer forums and a complaint is filed depending upon the total value of the matter, in your case, the value of the property. The three consumer courts are:

  1. District Consumer Dispute Redressal Forum: It accepts cases which have the total value of less than Rs. 20 lakhs.
  2. State Consumer Dispute Redressal Commission: It accepts cases which have the total value of more than Rs. 20 lakhs, but less than Rs. 1 crore.
  3. National Consumer Dispute Redressal Commission: It entertains cases which have the total value of more than Rs. 1 crore.

If your property value is more than Rs. 1 crore, property experts suggest that a complaint with the NCDRC is better than a RERA complaint. 

Also, you can file a consumer complaint against the builder by combining your application with other home buyers who are seeking refund from the same builder and filing a class action against the builder.

ALSO READ: How To File A Consumer Complaint Against A Builder

Answered on 28 Sep 2018


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