Facts are similar to writ petition decided by SC in Bikram Chatterji's case. Amrapali Group of Companies proposed to construct approximately 42,000 flats and duped thousands of investors. The builder was obliged to complete the flats of M/s. Amrapali Centurion Park Private Limited within 30 months from the date of commencement of excavation/signing of the agreement, which may vary for plus/minus 6 months but years lapsed without any construction. SC entrusted the project to NBCC for completion and handing over flats to investors. You can approach High Court of Bombay seeking similar relief.
Residential building project not being completed
Respected Sir, We have booked a flat in a under construction project in Thane, Maharashtra. This project Booking was Started in May 2011, I Booked by Flat in August 2011. It has been more than 11 years there is no building, In fact No Plinth of the Building we booked was constructed. The CC (Commencement Certificate ) to the Developer was Issued Somewhere around 2014, Our Agreements were Registered under MOFA in 2014 with a Possession date of 2018 which has been overshot by Nearly 4 years now. Project was RERA registered After RERA Came around 2016. It was RERA registered in 2018 with RERA Completion date of 2023. Now we are nearly Passed 2022, The Building Construction has not even being Started. There is No way in 2023 this project can get over. Its been 11 years with ought Flats and any kind of Compensation and the Developer is in no financial Position to Complete the Project neither refund Money with Interest to Buyers. The Developer also went to Jail on duplicate registration FIR and currently is out on Bail. there are more than 2-3 orders from RERA to refund to few buyers which itself are not honored. The Developer has messed up funds etc, He has also messed up Agreements with Land owners. We have Formed a Society now for investors per RERA, our question is there are few other developers who are interested in the Project who can complete this project. The Problem is as a society we are helpless the Project and MOU lies with the Developer who does not have any fund to complete the project nor he is stepping out so that other developers can complete this project. Is there any way where any Authority Like RERA, High Court etc can Intervene and Do a forceful convenience to the Society or Probably Appoint any Project Management Firms Like SBI Caps to Step in so that Project can get completed under the supervision of the Authority and the Builder has no control or Say with the New Developer. Right Now the Developer has vested interest in the project so neither he is completing the project, He has no funds to do so nor he is co operating to ensure a smooth take over by Other developers so investors are badly stuck, we have already waited for 11 years now for a 50 storied tower to be constructed it will still take about 4 years, so how many years can we just keep waiting. Question from us is what can be the way out. we need to get the developer out of this Project asap. Thanks a lot for your responses.
Asked 3 years ago in Property Law
Religion: Christian
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7 Answers
Unfortunately, the court cannot appoint any new developer to undertake and complete your project. It is beyond the court's purview and power. Moreover, a new developer has to enter into an agreement with you voluntarily, and no court can compel anyone to enter into any contractual obligation. Your society needs to scout for a reliable developer on its own.
You can approach RERA for necessary reliefs as builder has failed to carry on construction on time
you have booked a flat in a distressed project, your rights will not be impacted, if a new builder comes in. “In fact, as per the terms of contract, the price agreed should be honoured. The new builder subsumes the contractual obligations of the older builder.
3)please note that New promoter cannot demand extra money, states Section 15 of RERA.New builder taking over a distressed asset has to honour the contractual obligations with the previous builderNew builder cannot defer the timeline of the project completion on his own.
If the new builder is willing to undertake the project on the lines of the agreement you had entered into with the previous builder without demanding any extra costs, your association can decide about handing over the project accordingly.
Approaching RERA with your grievances and subsequent execution/implementation of the RERA orders may not be practicably possibly, but that would not prevent you from approaching RERA with your grievances.
In a similar situation supreme court has given a decision in favor of the buyers, hence you can approach high court also with a writ petition on the lines of the supreme court judgement.
it appears that the builder has given false assurances and made false representations regarding the project and its completion
so the allottees/flat purchasers can file a complaint to MAHARERA for revocation of the registration of the builder u/s 7 of the said act
once the registration of the builder under rera is revoked then the pending development work can be taken up by Maharera through the competent authority or by the association of flat buyers through another builder
so you can explore above option instead of filing individual complaints against the builder and getting paper orders which are of no use
even if you proceed to enforce the order passed in individual complaints, there are provisions under rera by which the decretal amount awarded in the final order can be recovered from the builder as arrears of land revenue
but if the builder does not have any funds at all only in the first place then i dont see any point sending him to jail as the flat buyers want that either the project is completed and flats are allotted to them or their money is refunded
another option will be to file an application before NCLT for initiation of corporate insolvency resolution process against the builder [provided its a company]. but the condition is that atleast 100 flat buyers must join in to make such an application. If the CIRP petition of the flat buyers is admitted then a resolution professional will be appointed by the NCLT who will take over the management of the builder company and then devise revival plans for reviving the builder company by calling for proposals from intending builders or other entities who can complete the incomplete project. So all of this will be taken up in the resolution plan to be drawn and to be filed by the intending bidders and the committee of creditors [which will include the flat buyers also] would then have to admit and approve that resolution plan which best serves their interest
Dear Client,
Primarily, the word ‘delay’ means that a promoter/builder in the sale agreement has agreed to complete the project and give possession of the property within a period but has failed to do so.
The RERA has the power to investigate a matter and issue notice on its own motion, as well as imprison the errant promoter.
As per Section 31 of RERA, an aggrieved consumer may file a complaint with the Authority or adjudicating officer appointed under the legislation.
"RERA allows a homebuyer a choice of seeking either interest on delayed possession or a complete refund of the money paid along with interest thereon. And, if the builder fails to provide the desired compensation, severe penalties have been prescribed under the Act ranging from imprisonment to registration cancellation".
As per Section 18(1) of RERA, in the events where the promoter delays the possession of a property or fails to complete the project within the agreed time as mentioned in the sale agreement, he shall be liable to return the amount received from the buyer in respect of the apartment/property or plot, along with the due interest. The interest imposed is 10 percent of the amount invested by the buyer. In case of non-compliance, a builder might face imprisonment for a term, which may extend to three years or a fine of up to 10 percent of the estimated cost of the real estate project, or both.
If the builder unilaterally changes the possession date of the project, then the buyer has a right to withdraw from the project and claim a refund of the invested amount within 45 days.
If the buyer does not withdraw the possession of the apartment/property, he/she retains the right to be compensated for the delay in the form of monthly interest till the date of handover. The monthly interest would be paid at the rates prescribed under the legislation. The interest must be automatically initiated by the builder or the promoter when the delay commences.
As per the ruling by the National Consumer Disputes Redressal Commission (NCDRC), buyers can seek a refund from the developer if the possession of the house or a flat is delayed beyond one year. Depending upon the value of the property, buyers can approach NCDRC in the following courts:
- For properties worth Rs 20 lakh, complaints should be filed with the District Commission
- For properties valued between Rs 20 lakh and Rs 1 crore, grievances should be listed with the State Commission
- For claims of over Rs 1 crore, a homebuyer should approach the National Commission
For those home buyers whose residential projects have got stuck due to lack of funds with the developer, the announcement made by the government related to the funding of stalled projects has come out as a welcome relief. The Union Cabinet has recently approved the ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Project’, wherein the government will be the Sponsor infusing up to Rs 10,000 crore into the projects.
Thank You.
You need to approach civil court Or high court in said case
