• Buyer options - Residential project is not completed by builder

I have purchased a flat in a multi storied apartment in Feb 2010. I have paid the token amount at the time of booking.
A year later builder suggested a Pre-EMI option if I take a bank loan. I have paid amounts totaling to 20% and applied for loan for the remaining.Bank has released 60% of loan amount and held back 10%.
As per the agreement, the construction is supposed to be completed in 2.5 yrs and with additional buffer of 6 months.beyond this period Builder is supposed to pay rental penalty.
Builder has paid interest on the loan for a period of 3 yrs. Even the rental penalty is said to be adjusted in amenities.
Builder has stopped construction stating lack of funds, therefore all customers formed an association and after continuous followups and discussions the construction has re-started.
Most of the buyers have downsized the loans and started paying EMIs to the bank, Owners came forward and contributed the pending 10% from their pockets in addition to payments for car parking.
Builder has been repeatedly failing in keeping his promise to deliver the project.

Its been more than 6 year now and work at the project is going at negligible rate, on repeated followups builder is asking loan from customers to complete the project.

Can I as an individual or together as an association file a complaint against the builder.
If I file a case, can the builder stop the construction ( even the negligible rate) siting the legal outcome.
What could be a approximate time frame for resolution in court

Your inputs will be a ray of hope for about 320 customers.
Thanks in advance.
Asked 8 years ago in Civil Law

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4 Answers

1. Engage a lawyer to move the consumer forum for deficiency in service and request for compensation for delay in delivery of possession and for direction to deliver the possession of the flat. Delivery of possession should and must be within a reasonable period.

2. The builder cannot stop the project unless there is a stay order from the court.

3. You can move the court individually or the association may move collectively.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) file complaint against builder before consumer forum for deficiency in service

2) seek orders to direct builder to complete construction within stipulated period

3) also execute conveyance deed in favour of association

4) seek compensation for mental torture undergone by you

5)also claim litigation costs

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

Hi

You can file as an individual or as an group. Since you have paid the money and builder is yet to complete the building you can file the following cases

a) criminal complaint against the builder (cheating case). he will be arrested and sent to jail, but a criminal complaint will result only in conviction(jail for builder). Your construction will get further delayed.

b) Civil Suit under Specific Relief Act: You can ask the builder to complete the apartments with in the specific time (new time lines to be decided by you) failing which you can ask the courts to permit the flat owners to organise amongst themselves and takeover the remaining works at the cost of existing builder.

c) If the flat owners take over the remaining works, these works can be funded from unpaid monies from flat owners and / or from attachment of properties of the existing builder.

d) Consumer court: You can file a compliant in consumer court under Sec 11 and 12. The consumer courts are very aggressive these days more so after passage of Real estate bill. Even builders like parsavanath, amarapalli, Shobha , Unitech, DLF, Mantri have been awarded hefty penalties and costs for delay in construction. the courts are awarding costs (interests upto 18% per annum, alternative accomodation costs, damages etc which are equaling 20-30% of monies invested by a buyer.

Option of approaching civil court and consumer court are available to you . You will need to decide. Once we know your full case history, we can evaluate both the options(in terms of benefits available to you) and then you can decide.

hope this helps.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

If you are affected then you can file a case as an individual, if teh other affected people want to join you for the complaint against the builder, they can join and a joint petition can be lodged before police as well as before the consumer forum.

The time taken for disposal by court cannot be predicted, usually it should be completed within two years.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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