Dear Sir,
Delay in delivery of unit for possession by the builder is a major and recurring problem faced by the buyers. Delay in delivery of possession is when the builder does not transfer the property to the buyer within the stipulated time period (even after the extension period).
Most apartment buyer agreements provide a fixed construction schedule, within which the possession is to be handed over to the apartment purchasers. Over and above such schedule, these agreements generally grant the builder/developer a grace period to cover for unforeseen contingencies which might delay project completion.
Some agreements go a step further and provide compensation by way of liquidated damages of a fixed sum, payable monthly for every month beyond the date of handing over of possession, till actual handing over of possession.
In a dispute brought before the NCDRC or the newly set-up RERA, the authorities generally compute delay from the date of delivery of possession strictly as per the contractual terms of the apartment buyer agreements. Therefore, in an agreement where a grace period has been granted to the builder/developer, the delay shall be computed from the date on which the said grace period concludes. The entitlement of the complainant/buyer will commence upon conclusion of the grace period till the date of handing over of possession. This is the general practice followed, however, no law has been stated to this effect.