• How to manage project if Builder withdraws services

Residential project started in 2006, completed to liveable state by 2012. Some allottees started living with Builder permission. Builder maintained the building and started some improvements in electricity supply(permanent connection) and water supply (corporation water) over the years. Still OC and CC not obtained. During COVID time he practically abandoned project which continued even after relaxations came in UNLOCK phase. Security services stopped, cleaning stopped, common electricity and water charges arrears mounted from his side without he paying it. We do not know what to do.
There are 16 regular residents in total of 38 flats. 31 flats have allottees. Builder does not want to provide services any more. No timeline for CC/OC. He says he is not having finances.
What to do . How to manage the day to day services and there is no association.
Asked 5 years ago in Property Law
Religion: Christian

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21 Answers

File complaint against builder before consumer forum and seek orders to direct builder to obtain OC and CC 

 to form housing society for all members 

2) to furnish audited accounts , to provide security services till society is formed

 

3) also seek litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

You can file complaint against builder before RERA as he has failed to obtain Cc and OC 

 

form cooperative housing society of all fat owners For day to day management 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

Hello,

  1. The members residing can make a temporary association after giving notice to all the members of the residential building  and arriving at a consensus on sharing the cost ( all 31 allottees).
  2. You can certainly approach RERA as the builder has failed to discharge his obligation of providing OC and CC and handing over possession and formation of association/Housing Society.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

You can approach to rera or consumer court. You will get the aforesaid relief in the same

Prashant Nayak
Advocate, Mumbai
34549 Answers
249 Consultations

It seems that the maintenance of the resident society was maintained by the builder on its own as the society has not been found and the builder was receiving the amount from the apartment holders to maintain the buildings doing this period where the work has been stopped and builder has abandoned the society and stop the construction work you have the only authority to approach at this time is rera and you can make complaint to the development authority of the area and the vice chairman of the development authority should be approached by signing repetition from all the residents affected

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

RERA dose not apply on present project. 16 flat owners can apply for individual connections and form a condominium to regulate security and MC by equal contribution. Later to form a registered society to manage affairs of building.

Without OC and CC, delivery of possession is illegal, flat owners could have approach consumer court for relief.

Yogendra Singh Rajawat
Advocate, Jaipur
23083 Answers
31 Consultations

Dear Querist

File a Civil Suit for a mandatory injunction against the builder before the Civil Court and also claim compensation for his wrongdoing. RERA will not help you.

 

Feel Free to Call

Nadeem Qureshi
Advocate, New Delhi
6348 Answers
302 Consultations

Form an association, get it registered from Registrar cooperative Societies office. 

Abd file a consumer complaint against the builder 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Dear Sir,

You are suggested not to go in RERA, rather you may go for legal notice and the a case in civil court for specific performance. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

 

From examining all the facts of your query I want to say that-

These cases are very common in various Courts of India and Supreme Court of India. It is evident that many buyers are reeling under the economic impact of the pandemic. Several have lost their jobs or been forced to take salary cuts. They are seeking an extension of payment schedules, and rightly so. It is a force majeure situation. You might know that meanwhile, the deadline for registration of ongoing real estate projects in the State under the Real Estate (Regulation and Development) Act in 2016 is likely to be extended further. In early January, the Kerala Real Estate Regulatory Authority (K-RERA) had ordered all ongoing real estate projects to be registered by March 31. Following the COVID-19 outbreak, this has been extended to May 15. So, filing a complaint to RERA in Kerala is not a good option because of the delay aspect.

Supreme Court has upheld orders of a state consumer commission and the national commission to refund payment with interest to a homebuyer for over seven years' delay in handing over possession of the flat he had booked with a Kolkata-based builder. The court said a buyer cannot be required to wait indefinitely for possession of his house. Please understand that a buyer can be expected to wait for possession for a reasonable period. A period of seven years is beyond what is reasonable. Hence, it would have been manifestly unfair to non-suit the buyer merely on the basis of the first prayer in the relief sought before the state consumer disputes redressal commission.

To my mind your builder is in a way taking advantage of COVID-19 crises. There are 16 regular residents in total of 38 flats. 31 flats have allottees. Builder does not want to provide services any more. No timeline for CC/OC. He says he is not having finances. So, to take legal action all the aggrieved parties can issue legal notice to the builder. One Legal Notice can issued by several aggrieved parties. You all can join hands together for this common object. I have recently issued legal notices under my signature to such delinquent builders in various States in India and many have come for to settle the issues. You can claim compensation for mental and physical agony by sending legal notice through Advocate. All legal action can only be taken once notice has been served upon the entity or individual you wish to take to court. It is only this process that legalizes bringing a matter to court. The intimation sent is known as a legal notice. A legal notice is, therefore, a formal communication to a person or an entity, informing the other party of your intention to undertake legal proceedings against them. This notice, when sent, conveys your intention before the legal proceedings and thus, makes the party aware of your grievance. Many times, a legal notice served will bring the other party on heels, and the problem can get resolved out of court too, with fruitful discussions on both sides. And, if the other party is still not heeding to the grievance, one can always start the court proceedings after a particular interval, as stated by the law. Although a legal notice can serve as a purpose of negotiations between the parties and save time, effort and money that are usually spent in court cases.

 

You may contact my secretary to connect with me for clarification.

I hope you and your family are safe and healthy. Stay home and be safe during Covid-19.

 

Gopal Verma,

Advocate on Record & Amicus Curiae,

Supreme Court of India

Shri Gopal Verma
Advocate, Delhi
422 Answers
22 Consultations

Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws.

- If the builder is unable to obtain the occupancy certificate, it means that the builder has violated building law or deviated from Construction Plan, and further it is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.

- Further, It is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate. Buildings without OCs are not given a water connection and are charged a higher property tax.

- Further, you should not pay the full amount before handing over the OC to you. 

- Further, as per RERA,, A builder cannot give possession to buyers without OC

- Hence, if the builder fails to give or obtain OC , then you should lodge your complaint before RERA.

- Further, you can also file your complaint before the Consumer court on the ground of deficiency of services , and to claim compensation as well. 

- Try to form an association /RWA , and file the case on behalf of the RWA. 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

First you gather the owners of the complex and form an association.

After forming the association get it registered, then issue a legal notice to the builder to complete the incomplete works that are pending.

Also you can demand him to pay the arrears of charges towards electricity and water consumption  and also demand the procurement of OC, besides you can demand him to transfer the corpus fund to the association and also to handover the documents pertaining the apartment building property.

If he fails to comply with the demands made, you may initiate legal steps  against the builder through consumer court as well through civil court for reliefs and recovery of amount from him.

Initially you can set up a responsible team to supervise the day to day maintenance activities under an arrangement till such time the association is formed.

 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

A complaint before RERA about the shortfalls of the builder or the incomplete tasks and his irresponsible attitude towards the apartment complex may be  taken up  by the association once formed.

For maintenance of the complex you can form a team or  set up a responsible team to supervise the day to day maintenance activities under an arrangement till such time the association is formed.

The contributions for maintenance can be collected from all the members on monthly basis also by fixing an amount payable monthly till the association is formed.

 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

Immediately issue notice to the Builder seeking to comply with the above non attended works by him

If he fails to respond, you can file complaint with RERA / Consumer Forum seeking direction against the Builder to comply with all the left over works and bring them cleared upto date, and that, to obtain OC & CC.

To furnish the accounts duly audited by Auditor till full fledged society is formed.

Procure the amenities and debit the expenses to his account.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

You can go to RERA also seek direction to get OC & CC.

Better lodge complaint with Consumer Forum, getting relief is faster here.

You need to form society in order to manage day-to-day activities / maintenance and maintain records of all the expenses, which can be debited to the Account of Builder.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

I suggest you request a deadline to builder for Occupancy certificate and completion certificate. If the builder fails to obtain completion within the deadline then threaten builder that you may approach the court and in that scenario you may approach District consumer court. 

Mohammed Mujeeb
Advocate, Hyderabad
19328 Answers
32 Consultations

either you can approach RERA Or Consumer court. 

Mohammed Mujeeb
Advocate, Hyderabad
19328 Answers
32 Consultations

Form a RWA and get it registered and then let RWA apply for OC/CC.

 

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

1. Resident should form an RWA and register it and start collection of maintenance by themselve in account of RWA. 

2. Make a managing committee from RWA members to manage day to day affairs of society.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

You should have filed a complaint against him long back in the RERA tribunal or before tge state consumer forum. You should do it now.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You should ask for an interim relief from the RERA tribunal so that your day to day problems can be sorted out by the builder till the resolution of the dispute.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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