If you are a homebuyer in India and your house is stuck in a delayed real estate project, here are some actions you can take:
1. File a complaint with RERA
The Real Estate (Regulation and Development) Authority (RERA) is a law that helps protect homebuyers in India. If a homebuyer has paid money to a developer for a property but the developer has not given possession of the property on time, the homebuyer can take action.
Under RERA, the homebuyer can either ask the developer to give them interest on the amount paid for the property until possession is given, or they can ask for a complete refund of the amount paid along with interest. The Real Estate Regulatory Authority (RERA) was established to protect the interests of homebuyers. You can file a complaint with RERA and seek their assistance to resolve the issue. RERA has the power to impose penalties on developers for project delays.
2. Initiate legal action
You can also initiate legal action against the developer. You can approach the civil court or the consumer court to seek relief. However, it is advisable to consult a lawyer before taking any legal action.
3. Go to Consumer Courts
In India, if a property buyer has paid money to a developer but the possession of the property is delayed for more than a year, they can seek a refund from the developer. The process of filing a complaint and seeking a refund depends on the value of the property. If the property is worth up to Rs.20 lakh, the complaint should be filed with the District Consumer Disputes Redressal Commission. If the property is worth between Rs.20 lakh to Rs.1 crore, the complaint should be filed with the State Consumer Disputes Redressal Commission. If the property is worth more than Rs.1 crore, the complaint should be filed with the National Consumer Disputes Redressal Commission.
4. Go to NCLT
In India, if a property buyer is facing a delay in possession of their property, they can file a petition before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the real estate company.
The NCLT will appoint a resolution professional who will work with the Committee of Creditors (CoC) to make a plan to resolve the issue. The CoC is a group of people who have lent money to the real estate company.
If at least 66% of the members of the CoC agree to the resolution plan, it will be adopted. If not, the real estate company will be liquidated, which means its assets will be sold to pay off its debts. It is important to note that homebuyers cannot file cases individually, and the total amount of default by the real estate company has to be more than Rs. 1 crore.
5. File a complain with CCI
In 2011, the Competition Commission of India (CCI) issued an order against a real estate developer called DLF, which encouraged many property buyers to file similar complaints against their developers.
However, after the introduction of the Real Estate (Regulation and Development) Authority (RERA), this option of filing complaints with the CCI has become less common. RERA is a law that protects the rights of property buyers in India, and it provides a mechanism for buyers to file complaints against developers for delays or other issues related to their property.
6. Get AID from SWAMIH FUND
The Central Government of India introduced the SWAMIH Scheme (Special Window for Affordable and Middle-Income Housing) in 2019. The purpose of this scheme is to provide funding for housing projects that have been halted due to lack of funds. However, the scheme has strict conditions that need to be met, which is why less than 100 projects have qualified for this funding so far.
7. Form an association with other homebuyers
You can form an association with other home buyers who are facing similar issues. This will give you more bargaining power and enable you to negotiate better with the developer.
8. Reach out to the developer
You can also reach out to the developer and try to negotiate a solution. You can request the developer to provide you with a revised completion date and seek compensation for the delay.
9. Seek assistance from the government
You can also seek assistance from the government. The Ministry of Housing and Urban Affairs has a grievance redressal portal for homebuyers. You can file a complaint on the portal and seek their assistance.
In conclusion, delayed possession of your dream home can be frustrating and stressful. However, there are several remedies available for homebuyers in India. You can file a complaint with RERA, initiate legal action, go to consumer courts, file a complaint with CCI, get aid from SWAMIH Fund, form an association with other homebuyers, reach out to the developer, and seek assistance from the government. It is essential to document all communications and transactions related to the project delay and keep all records, including receipts, agreements, and correspondence. It will help you in case of legal disputes.
The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global services.
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