Builder delaying flat possession? What homebuyers can do under RERA and consumer protection law

Delayed possession is one of the most common grievances faced by homebuyers, often forcing them to wait years beyond the promised delivery date. This may become a financial burden for the homebuyer, especially if they are paying home loan EMIs while continuing to live in a rented house and paying rent.

If such a thing happens, you can still receive help. Homebuyers can explore several legal and financial options under the Real Estate (Regulation and Development) Act (RERA). Through the below mentioned steps, an aggrieved homebuyer may be able to seek a refund, claim interest for the delay, or pursue compensation depending on the facts of the case.

What to do in case of delayed possession?

If a homebuyer is facing delayed possession, they can take the following steps to protect their legal rights:

• Lodge a complaint with RERA: If the delay extends beyond the stipulated period and the builder fails to provide a resolution, a formal complaint can be filed with the local RERA authority. The complaint must include the facts of the case and any communication between the buyer and the builder.
• Seek legal help: In cases where the RERA process does not provide a satisfactory resolution, or the builder is non-compliant, homebuyers can approach a consumer court or take legal action as per the provisions under RERA and the Consumer Protection Act.

Can you seek compensation for such delay?

If the possession is delayed beyond the promised date in the agreement, the homebuyer has the right to seek a refund of the amount paid, along with applicable interest penalty, according to a report by RERA Filing.

A buyer who chooses to wait for the possession instead of seeking a refund can claim interest for the period of delay. This interest is generally calculated at the rate prescribed by RERA, which could be around 2% above the lending rate of the Reserve Bank of India (RBI), the report stated.

In cases, where the possession is delayed for a longer period of time, usually 6 months or more, the homebuyer has the right to terminate the agreement with the developer and claim a full refund of the paid amount along with compensation. The builder must refund the amount within 45 days and if they fail to do so, then additional penalties will be applicable.