• Delay in possession of flat for over 4 years by builder

Respected Sir/Madam,

I am resident of hyderbad, Telangana state. I purchased Flat and entered into agreement with builder in month of February 2011. As per the agreement builder is expected to hand over the Flat in one and half years plus six months grace period from the date of agreement.   This sets the Delivery date in February 2013. In case of delay builder is entitled to pay compensation at the rate of 15% annum on the unfinished work. Till now its still in construction. Over the years construction was halted most of the times , the reply we get from builder is lack of funds. I paid the amount in time as per construction stages. I paid the entire amount that covers the flat cost . Builder says he will compensate the amount in one shot at the time of settlement which is expected to happen after delivery of flat (before registration). 

After numerous schedules and promises given by builder regarding falt possession since 2012  which they always broke, i am worried if he ever completes my Flat. Please suggest me if there are any chances for me to take the issue before law. My prime concern is to get my Flat completed as soon as possible. 

Thanks,
Asked in Property Law from Hyderabad, Telangana
Religion: Hindu
You should serve a lawyer's notice to the builder to give him one last opportunity to deliver the possession with compensation at the agreed amount. If despite the notice from your lawyer the builder does not fulfill his contractual obligations then you should sue him in the consumer forum for delivery of possession with compensation and legal cost.
Ashish Davessar
Advocate, Jaipur
19896 Answers
520 Consultations

5.0 on 5.0

1. Well, if the construction of the flat is still at a very nascent stage you can apply for cancellation of the booking, more so, if there is any clause for cancellation out of inordinate delay.
2. In any event you can be adequately compensated for the delay.
3. So after waiting so many years it is advisable that you file a case in consumer forum praying for refund of your sale price, compensation for the loss caused to you out of this delay and  damages for mental and physical harassment and agony.
4. So meet a lawyer and take the case for ward.
Devajyoti Barman
Advocate, Kolkata
7300 Answers
83 Consultations

4.9 on 5.0

Delay in delivery of possession in a building is one of the most commonly faced and frustrating problems for a property buyer. As in any legal matter, you should posses evidence to prove your stand or allegation. Get all papers and documents ready‚ÄĒadvertisement brochure, booking receipts with payment details, any letter sent by the developer, signed agreement, all payment details, emails exchanged, photographs collected, and others. Avoid verbal communication. Buyers should always send a legal notice before approaching any forum or court with their grievance. They should have taken objection with the builder against violations or illegal demands by sending a letter so that evidence can be created in their favour to be produced at the time of proceedings

What remedies are available in case the builder delays the construction of the building?
1. You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. Demand compensation from builders for construction delays
2. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission at all the three levels i.e the district , the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District. 
3. There are special provisions in some states for the benefit of consumers. For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project. This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time. 
4. There are some additional provisions which you should be aware of. For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties (a) That all the work would be completed on time (b) That  all work will be carried out in accordance with the plans and specifications set out in the contract (c) That all material to be supplied by the builder will be of a high quality (d) That the work will be done in a legal manner with reasonable care and skill, and 
5. when the work is completed, the home will be fit for occupation. As per this law, you are entitled to take action for delays.  Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court.


Approach the consumer court.
Ajay N S
Advocate, Ernakulam
2070 Answers
24 Consultations

5.0 on 5.0

1) you are at liberty to cancel the agreement and seek  refund of your money with interest at 15%on account of delay in delivery of possession of flat by builder 

2) also seek compensation for mental torture undergone by you and litigation costs 
Ajay Sethi
Advocate, Mumbai
28541 Answers
1548 Consultations

5.0 on 5.0

A. Lack of funds is not sufficient reason to non delivery of possession in time as stipulated in the agreement. You are entitled to recover the paid amount with 15% interest. As per the terms of the contract, the builder has bounden duty to complete the construction within prescribed time. And there are many sources for arrangement of funds i.e, investor, mortgage loan, own contribution and purchaser money etc., Hence, providing funds is not your job. Payment of consideration amount to get possession is only your duty and responsibility.   

B. At the option of buyer, after issue a legal notice, either buyer may approach the Consumer forum to claim compensation in respect of delay in delivery of possession or claim damages for mental agony and breach of trust. Moreover, you can approach Civil Court to recovery of your money by initiation summary proceedings.  

B.T. Ravi
Advocate, Bangalore
758 Answers
38 Consultations

5.0 on 5.0

1. You have already delayed in taking up the matte legally.

2. File a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming completion of the construction within 30 days and handing over possession and registration of your flat within another 1 month failing which payment of penalty @Rs.1,000 per day for each days delay, damage, compensation as mentioned in the agreement, all with interest and cost.

3. In case of his failure to comply with the order, get an order for attachment of his personal properties and bank account.
Krishna Kishore Ganguly
Advocate, Kolkata
13940 Answers
309 Consultations

5.0 on 5.0

1) legal notice should be sent separately 

2) you can jointly file complaint before consumer forum 
Ajay Sethi
Advocate, Mumbai
28541 Answers
1548 Consultations

5.0 on 5.0

1. It is always preferable to file such complaint cases before the Consumer forum jointly.

2. in the said case, evidences on same issue can be produced by multiple claimants and also that the total litigation expenses can be distributed amongst all the participants.

3. Moreover, the proceedings of the Court and the lawyer's performances can be closely watched since any one of the group can be deployed to attend the Court on the days of hearings. 
Krishna Kishore Ganguly
Advocate, Kolkata
13940 Answers
309 Consultations

5.0 on 5.0

Collective action through a class action lawsuit can also be undertaken by the affected individuals. 
Ashish Davessar
Advocate, Jaipur
19896 Answers
520 Consultations

5.0 on 5.0

you can approach group as well as individual capacity. The better send legal notice send individually and approach the court 
Ajay N S
Advocate, Ernakulam
2070 Answers
24 Consultations

5.0 on 5.0

You can issue a legal notice to the buildr demanding to pay the compensation as per sale agreement from the date of its due till date and pressurise him to complete the construction at the earliest.
If there is no proper response or the builder is not complying with the demands made, he may dragged to consumer forum for deficiency of service and compensation etc.
T Kalaiselvan
Advocate, Vellore
18745 Answers
176 Consultations

5.0 on 5.0

Is it possible or valid to legally approach as a group? I mean they are many victims in our block who are ready to take up the delay issue legally. My doubt if we can send notice or something like that as a Group?

Collective legal action can be taken against the builder by all the affected members joining together.
You can initiate individual legal action also since you are affected by this lethargic and irresponsible attitude of the builder. 
T Kalaiselvan
Advocate, Vellore
18745 Answers
176 Consultations

5.0 on 5.0

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