Hi Team, I have taken a property in Mohan Suburbia Ambernath before RERA came into existance and my possession date on agreement is Dec 2018. After RERA came builder revised the possession date to 30th June 2019 as revised proposed date of completion and now they have again revised the date in RERA to 29/06/2020 as extended date of completion. Is there any option for us to get the compensation for the delayed possession as when i visited their office they simply said we have extended the rera date and there will be no compensation a everything is genuine from our side. I had invested in this property so that i can get tax benefit but now that is also not possible as emi was started from feb 2016. I need a guidance as to what are my options to either get the interest till date as per agreement or to back out from this property and get my investment with interest back. Can i approach rera and will the case be in my favour in this regards.
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The builder cannot unilaterally extend the date of possession, without your consent. As the same is done, the builder is liable to compensate you for the delay in possession.
File a complaint in Consumer Court against the builder for deficiency of service and unfair trade practices against the builder seeking compensation for the delay in possession along with interest and possession of the property.
Approaching RERA would not be of any use due to enforceability of the decree issues.
If in case the buyer does not wish to withdraw from the said delayed project, he will have the right to get compensation with interest, for each month of delay. This interest amount differs from state to state.
you are entitled to compensation for delay in delivery of possession
2) if builder refuses to pay compensation file complaint before RERA and seek orders for payment of compensation for delay in delivery of flat from date mentioned in your agreement
3) RERA would award you compensation
Yes delayed possession will always depending on the agreement date and not the rera website date. You can approach rera or consumer court
It’s a great case. You are fee to approach RERA and seek refund with interest or seek interest/compensation for the delay in possession. Just because he has been extending the possession date with RERA, his commitment/agreement with you is not novated.
Approach RERA through a lawyer r
Yes you can file a rera complaint and can seek compensation, as per you agreement there is delay and the builder failed to deliver on the promised date and further revised dates with RERA so the tribunal may grant you relief and alternatively you can pray for cancellation of booking with the refund of amount along the interest.
1. Try filing grievance petition in the local consumer court, for the negligence, deficiency, harassment, malpractice and loss of Interest, capital, WITH all supporting & relevant documentary evidences. You would be entitled to damages, compensation & interest, for violation of the sale agreement.
You have two options available one you have to complaint in rera regarding the Builder and the extension of the time period as revised by the rera and the second option is that you have to file a complaint with the state consumer Commission if your value is more than 20 lakh rupees to get the compensation and interest charged based on your delivery date because that will be the date for your cause of action and let the commission issue notice to the Builder to appear before the court in this regard
RERA rules entitles buyer to receive interest on delayed possession or refund with interest. Complain to RERA. Builder is liable to pay interest from Jan 2019.
Simultaneously remedy before RERA and consumer forum.
- As per law, A builder will have to pay 10% interest on the value of the property for delayed possession .
- RERA was enacted with the intention to prevent exploitation of buyers, safeguard their interests and provide stricter punishment for builders delaying possession of the property.
- Further , A builder is permitted maximum two extensions of 120 days without paying delayed compensation , after giving proper written notice to the owner of the flats.
- Otherwise a flat owner is entitled for delayed compensation .
- Hence, you should lodged your complaint before RERA for the above said compensation and for the delivery of flat.
You can back out from the agreement as builder has delayed the possession by one year.
You should file a complaint before RERA for refund of advance paid and compensation along with interest for delayed possession.
You can get compensation for the delayed possession.
They cannot refuse to pay compensation if there's an inordinate delay.
You can approach RERA or even consumer forum seeking the said relief.
The builder cannot take you for granted on this.
The following information may kindly be read:
Factors on which the possession date is decided
The possession date is decided, based on the period involved in carrying out construction work of the building, availability of materials and labour at site and the permissions and approvals to be issued from the concerned authorities. Under the new regulatory regime, it is important as it defines the date on which the home buyer should get possession of the unit, adds Niranjan Hiranandani, national president of NAREDCO (National Real Estate Development Council). “No real estate developer wants to delay his project by not handing over possession on the specified date, as the RERA prescribes penalties for delayed possession. Nevertheless, delays are usually caused by bureaucracy and ‘red tape’, over which the real estate developer has no control. In such cases, the developer may be penalised for no fault of his. Hence, developers are likely to add a generous ‘safety margin’, to ensure that they are not penalised for delays that are beyond their control. If there are no delays, the possession may even be handed over prior to the scheduled date,” he elaborates.
Other factors that determine possession date, are market conditions and availability of cash flow for the project. Industry experts point out that in the event of scarcity of cash flows, the period of construction shall be longer and eventually, the date of possession would be delayed. Adverse market conditions also affect the cash inflows from buyers. Timely payments by flat purchasers, as per the agreed schedule, is of immense importance for completion of the project.
What can a buyer do, if the agreement does not mention the possession date?
The issue, where no exact date for possession is mentioned in the agreement or the absence of a date from which one can calculate the date of possession, has been considered by various courts of law. Sulaiman Bhimani, an RTI activist and president of Citizens Justice Forum, who has been fighting many cases related to this issue says: “This a trick adopted by developers, to escape the laws by not mentioning the date. In the case of Hirjee, the issue has been settled by the real estate authority, even though the date of possession was not mentioned in the agreement. Earlier, there was no clarity on the redressal for these kind of issues. Now, home buyers can approach the consumer court or RERA and file a complaint regarding the promise made by the builder or regarding unreasonable delay.” If the buyer is not satisfied with the order, s/he can challenge it in the appellate tribunal, within 60 days. The next appeal against the order of the appellate tribunal can be filed in the high court of the respective states.
Possession date: Important points for home buyers to consider
The home buyer should look for projects registered under RERA and the draft agreement on the website. This agreement should be checked by an advocate, to verify whether it conforms to the RERA. The buyer should also check the date of possession mentioned in the agreement and the ‘grace period’, if any. Ideally, six months should be the maximum grace period, from the date of possession specified in the agreement. As per the Maharashtra Ownership of Flats Act, 1963 (MOFA), the exact date of possession should be disclosed in the agreement of sale. Consequently, in its absence, in many cases, the deal was declared invalid. A specific clause in the agreement, known as the ‘compensation clause’ can also be included, wherein, in case of failure to finish a project within the date mentioned in the agreement, the developer will be bound to pay a stipulated amount to the buyer every month.
Having the possession date in writing, gives the buyers assurance that the developer will ensure timely delivery as per the agreement and that their investment is safe, maintains José Braganza, joint MD, B&F Ventures (P) Ltd.
“As a first step, the buyer has to do a background check on the builder and physically inspects all documents, especially details about the possession date, before buying any property. The possession date, ideally, should be between two-three years from the inception of the project, regardless of its size,” he concludes.
