The Buyt Desk
Buying a home is not easy, especially in urban areas. A person puts all his savings into making down payments and then takes a hefty loan whose EMI he has to pay for the rest of his life if income does not increase as predicted.
And what if the same project gets stalled or delayed? Nothing is more heartbreaking than this. According to real estate consultant Anarock’s report, about 174,000 homes are stalled across seven cities whose value is over Rs 1,40,613 Crore. The maximum number of stalled projects is in National Captial Region (NCR), 113,860 and then in Mumbai Metropolitan Region (41,720).
There are many reasons behind the delay of a project, such as financial strain on the builder, raw material supply hindrance, labour shortage, etc. Whatever the reason, the hardship of stalled project has to be borne by the buyers most. And with such projects, the buyers have the least options to do. If concerning authorities have not initiated the insolvency proceedings against the builder, then here are a few things buyers can do.
Approach The Real Estate Regulator – The first option for the buyers is that they can complain against the builder to the real estate authority. It is Real Estate Regulatory Authority (RERA)
The RERA will either help buyers get refunds or instruct the builder to speed up the construction process. Besides that, the homebuyers have a few more rights – the right to receive payment against the delay and the right to get the interest. The interest is calculated based on the ROI mentioned in RERA for each month of delay till the possession.
Apart from RERA, Real Estate Appellate Tribunal (REAT) also takes care of the rights of homebuyers. RERA has the right to hold or overturn the order passed by RERA. Additionally, one can contest the REAT order in the high court.
Buyers Can Take The Legal Route – The second option available to home buyers is taking the legal route. The National Consumer Dispute Redressal Commission is a quasi-judicial commission that was set up in 1988 under the Consumer Protection Act 1986. It is the authorized body to file a complaint against the builder by homebuyers against the delayed project.
The major cities like Delhi, Mumbai, etc., have city-forum while states in India have state-forum. Homebuyers can register their complaints at these forums. They can also ask for a refund if the project has got delayed for more than a year.
Depending on the property value, courts have been segregated, and homebuyers can visit the respective forum and lodge complaints at NCDRC for the dispute redressal. For property up to 20 Lakh, the complaint needs to be lodged at District Commission. For property up to 20 Lakh to 1 Crore, the state commission needs to be approached, for the property above 1 Crore, the national commission has to be approached.
What Homebuyers Shouldn’t Do Till The Issues Resolves
Selling The Property – If exiting from the property is what you think is a solution, then you might be wrong. Stalled property’s cost is compromised because of delays in the project and other infrastructure development. So, finding a buyer will not be easy. Moreover, you will have to sell it at loss.
Don’t Stop Paying EMI – No matter what, you should never stop paying the EMI of the loan to the bank. Doing this will negatively impact you in many ways. The bank or any other financial institution has the right to take necessary action against the defaulters.
What Should Homebuyers Do In The Situation Of Delayed Project?
To make sure that the project finishes on time, the homebuyers must remain proactive. They must take action as soon as they realize that the project is missing the timeline.
Homebuyers must keep track of project progress, and if the builder denies sharing information, it is a clear indication that there is something wrong. They should seek help from concerning authorities as soon as possible.
