Hi I am planning to buy property in Mumbai which is actually redevelopment project under SRA(Slum Rehabilitation authority) Project has Wing A wing(For SRA rehabilitation) and B wing(For Sale purpose). I am considering property in B wing(Sale purpose). Project is under construction status & registered under RERA with RERA number(Date of completion - Dec 2019) My question is if due to some legal trouble(Because of SRA or some other reason) project is stalled and builder is not able to give possession on the date mentioned in the RERA? Will I be still protected under RERA to get compensated for any delays ? I am looking for answer from both perspective - Case 1 - Legal issue where developer is at fault Case 2 - Legal issue where developer is not at fault Also let me know if you need any additional information to properly answer this question. Few Project Details - Project is developer by developer The property has presently has no legal issues mentioned in the RERA. Project is developed under SRA(Slum Rehabilitation authority)
1) if builder fails to deliver possession on due date mentioned in your agreement then you can seek compensation for delay in delivery of possession
2)if builder is not at fault and project is delayed due to force majeure conditions then you would not be entitled to compensation
3) it is better to buy a flat where construction has been completed and OC issued
1. The New-Buyer of property steps into the shoes of the Original-Buyer. Hence any & all benefits /liabilities gets transferred to the New-Buyer, by Legal Default, without any exceptions.
2. Reasonable & Just delay, shall be condoned by RERA. HOWEVER, any nefarious & non-justifiable delay by Builder, shall be penalized by RERA, to the benefit of the existing buyers on the latest list.
Keep Smiling .... Hemant Agarwal
As per S.18(1)(b), If the promoter fails to hand over the possession within the stipulated time, then, he is liable to pay interest for every month of default to allottee. If developer is not at fault, then, there is no question of compensation.
Hi, A compalaint before RERA can be registered agianst the builder and even against the local government authorities if they default on thier part , due to which the construction work is hampered
1) Yes, This project will be controlled by RERA Act. And you have full rights to fight against Developer regarding completion of project and the amount invested by you.
2) Now, regarding what is government makes any delay or political issue etc than developer will not held responsible for completion of project. However you can ask for compensation from developer, because they may be aware of any kind of the situation and the same should informed to you. Still you can ask for compensation being this was not your faults.
In case first where developer is fault you shall be entitled to compensation from builder for delay on filing with RERA authority.
In case two where developer is not at fault then he shall be at no liability if he inform that to buyers in time. The authority can also skip liability taking into consideration the legal grounds.
But if the developer is responsible for permission than the project is stopped the developer is liable in both cases.
So a compensation for delay can be seeked from builder in case there is delay.
If reasons for delay in handling over possession of flats is beyond the control of the builder and is attributable to other factors which are not under his control, he cannot be mandated legally to pay any compensation to you; not even under RERA.
Dear Cleint,
Under RERA proviso is attach to section - extension of registration which raed as --
Provided that the Authority may in reasonable circumstances, without default on the part of the promoter, based on the facts of each case, and for reasons to be recorded in writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a period of one year:
In case developer is at fault, but not willful and beyond control circumstance, than his case may be consider for extension.
Not cause of his fault - No liability
Willful Default - complete liability.
But if no extension granted/refused/not applied, than beyond time limit, he is liable under RERA.
Will I be still protected under RERA to get compensated for any delays ?
I am looking for answer from both perspective -
Case 1 - Legal issue where developer is at fault
then naturally the builder can be dragged into the controversy and be directed to pay the amount as penalty
for the period of delay.
Case 2 - Legal issue where developer is not at fault
If it is beyond the level of the builder then you may have to endure the same.
Thank you for responses - He is my follow up questions - The property I am planning to purchase is in building(Sale wing A) constructed in extra FSI that builder get as a part of SRA scheme (Slum rehabilitation authority). So this project has wing A(sale) and wing B(Rehab). As mentioned earlier Wing A(sale) has RERA number which has document such as IOD,Declaration form B,Title & commencement certificate(for both wings). Its also mentions that it has no legal cases pending. So in this case, Can sale building(wing A) OC depends on OC of SRA building(Rehab)? In case SRA building has some pending issues due to which the OC for SRA building is delayed under this circumstances if all work for wing A(sale) is completed, Can Sale Wing A(sale) get OC before Wing B(rehab)? Thanks in advance.
You must understand that the whole project is based on the main SRA scheme.
If the builder has concentrated on the sale part of the project alone and neglected the issues of the rehab part of the project though the project is due to the SRA scheme (rehab), this issue of getting OC for sale of the SRA project may cause flutter and create legal hassles in the future.
Better you may wait for the full clearance or consult a local advocate for further advised based on the prevailing circumstances.
1) OC of sale wing would depend upon OC of rehab wing
2) you would get OC only after OC of rehab wing is issued otherwise builder would not complete the work of SRA flats once he has obtained OC of sale wing flats
The OC to rehab flat shall be issued before the sale wing or at same time builder cannot delay the rehab wing for sale wing.
After Site inspection the completion certificate of complete site will be issued thereby OC for the rehab and sale wing shall be granted.