What To Do In A Delay In Possession Of Property?
I took an apartment in 2013 in "Prakruthi Solitaire" Phase II, by Nandhini Builders. According to the agreement, the apartment was supposed to be handed over in June of 2014 (with a grace period of 3 months). Needless to say, I still haven’t received... Read More
I took an apartment in 2013 in "Prakruthi Solitaire" Phase II, by Nandhini Builders. According to the agreement, the apartment was supposed to be handed over in June of 2014 (with a grace period of 3 months). Needless to say, I still haven’t received possession. The property is not RERA registered and the builder is ignoring all calls to register.
The way I see it, these are the options I have:
1. Approach RERA (Karnataka) - I’ve read that even if a buyer is able to get a decision in their favor, they have trouble getting the money back. Also, after a decision, they cannot go to consumer courts.
2. Join hands with 2-3 other people in the same apartment (so that we go beyond 1 Crore) and file for a refund in NCRDC. Apparently, some folks have had success using this method.
3. Approach the SCRDC – One minor concern is that it seems the (penalty) interest on the principal amount is lower than NCRDC (which I know to be about 10%). I am not sure how effective this has been for folks in Karnataka.
Please advise on the best way to move forward. Things I am concerned about are:
1. Time to reach a verdict – I understand that these things take time and I am ready to wait for a couple of years.
2. Enforcement – Make sure the decision is binding on the builder with strict timelines, and in case they delay beyond a reasonable time, options to force them. This could be either through escrow account through the court, or options for criminal proceedings as the last resort.
3. Legal costs – there is a certain limit on how much I’ll be able to afford legal fees. Ideally, this should be commensurate with the speed of decision. Any indication of costs would be most welcome.
- Sector-1, Noida
File a complaint under RERA. RERA provides a mechanism to the buyers to get a refund in case of any default by the builder. It was enacted with the intention to prevent exploitation of buyers, safeguard their interests and provide stricter punishment for builders delaying possession of the property. According to this Act, a builder will have to pay 10% interest on the value of the property for delayed possession of flats.
Answered on 16 Aug 2019
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