• Delay in possession by builder

A 3 BHK flat is booked at Kharghar, Navi Mumbai in May 2012. 30% amount is paid at the time of booking (May 2012). The agreement was registered in July 2014 which was delayed by builder. From July 2014 to Dec 2015 72% amount is collected by bank loan. The building work progress is very slow & all slabs were not yet completed. Possession will be mostly at the end of 2018.I talked with builder & stopped further payment as building progress is very slow.
-Can I ask compensation for the delay?
-Builder did not gave any document for our discussion about stopping of payment (but agreed verbally)
-Can I cancel the deal & ask for amount with compensation (including stamp duty & other charges).
-Can I approach consumer court for above matter? (Amount paid is Rs 11808000/-).
I am staying abroad, can I file case by giving power of attorney?

Please let me know how to proceed the matter. 
Please give email or contact numbers of advocate who can file the case.
Asked 7 years ago in Property Law
Religion: Hindu

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8 Answers

Dear Sir...

Feel Free to file the matter in consumer court ...according to jurisdiction ..

ofcourse you can file the matter ...to sign on ...wakalatnama ...



Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

feroz shaikh..

Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

1. The penalty in delay of possession mostly depends on the clause mentioned in the agreement and so is the cancellation clause.

2. So to make comment on the cancellation the sale agreement requires to be perused for proper opinion.

3. I would not advise you to cancel the agreement.

4. On the contrary file case in the consumer forum where ask for expeditious delivery of possession and claim for compensation out of delay caused to you.

5. Yes, you can file and conduct the case through your poa holder.

6. You can contact me on [deleted] if you wish to file the case.

All the best.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0


1) It is very apparent that there is a deficiency of service by the builder and hence the case can be filed at Consumer court.

2) Filing a case against the builder in consumer court is cheaper and the process is faster compared to Civil courts.

3) Since the amount paid is above RsOne crore-/- you can file the consumer complaint at National Consumer Disputes Redressal Commission(NCDRC) , New Delhi.

4) By filing in NCDRC the advantage is that in case of appeal against NCDRC, the aggrieved party will have to go to Supreme court and hence the appeal process is also faster and cheaper.

5) Compensation for delay will be in two forms-

5a) Interest equivalent to Fixed Deposit rates by Nationalised bank from the date of payment till date of handing over of possession and

5b) Monthly rentals as costs of alternative accommodation from the due date of delivery till the date of possession.Monthly rentals are based on prevailing market rents in the nearby locality for 3 BHK apartment.

6) In the event of you asking for full refund you might get refund plus bank fixed deposit rate of interest and NCDRC will not grant monthly rentals as cost of alternative accommodation

7) It is a tough choice on deciding whether to ask for early possession with compensation or full refund with bank interest for monies paid to builder. So you need to decide

8) At NCDRC, Documents are to be signed by the purchaser. Thereafter only advocates are required at NCDRC. Parties are required to present only Written statements/affidavits etc.

9) If you are interested you can contact Mr. Bharat sharma at [deleted]. He is based at Delhi and he is also a member of NCDRC bar association. You can refer my name and he will help. i will also put in a word, in case you decide to approach him.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

1) you cna seek compensation for delay in delivery of possession as per terms of your agreement

2) you can cancel the deal and seek refund of money paid by you with interest

3)_ you can approach consumer forum seek litigation costs , compensation for mental torture iundergone by you

4) number of lawyers on this website from mumbai contact any of them

5) you can aexecute POA in favour of family member for filing complaint before consumer forum

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

A property buyer, who invests his hard-earned money in buying a home and does not get its possession on time, not only fails to get a roof over his/her head but also ends up losing money, in the form of EMIs on the home loan and paying for a rented accommodation.

If possession is not delivered on time, a purchaser can send a notice to the builder, claiming refund of the amounts paid along with interest and/or damages. “The buyer can also file a consumer complaint for ‘deficiency in service’ as defined under the Consumer Protection Act, 1986 against the builder.

A few months ago, a developer in Mumbai was asked to compensate buyers for delay in possession.

Experts point out that a purchaser can also file a regular suit before a court of competent jurisdiction, for damages or specific performance, under the Indian Contract Act, 1872. If there is fraud involved–for example, if the builder knew from the beginning that he would not be able to deliver possession within the stipulated time and by some misrepresentation, induced the purchaser to book the flat – civil and criminal proceedings can be initiated.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

1. What is the date of delivery of possession?

2. If the date of delivery of possession is past then you can cancel the agreement through a lawyer's notice and seek refund of the entire amount. If, however, no date of delivery of possession has been mentioned in the agreement then the builder has to deliver the possession within a reasonable span of time.

3. If the builder does not refund the money even after receipt of notice from your lawyer then you may move the consumer forum.

4. There is no need to execute a GPA in favour of someone as you are not required to be present in the court except for your examination as a witness. On all other hearings the presence of your lawyer shall suffice.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. What clause has been mentioned in the agreement for penalty to be paid by the developer for his delay in construction and the amount of interest to be charged or to be deducted if you stop payment or cancel the booking?

2. All your acts should be in accordance to the terms and conditions mentioned in the said agreement.

3. If the builder has delayed the construction beyond the stipulate period, then you can cancel the booking claiming the refund of the amount paid with interest.

4. You must send him a letter about stopping the payment to keep in record your discussion with him for stopping the payment.

5. You can file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of the entire amount paid by you including the amount spent towards stamp duty with interest, damage and cost.

6. The case can be filed by your POA holder.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

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