Delay in construction of flat what action can I take

629 votes

Firstly you have to issue a proper legal notice regarding delay in constructions and non-compliance of the agreement. But you have to paid the sufficient amount towards sale consideration as per the agreed terms of the flat buyer’s agreement, if the firms found to be complied with the applicable terms of the agreement than you have to initiate legal actions against them by filing criminal complaint as well as the consumer complaint case. Because they have not started the construction at all.

Advocate Harsh Kumar Gautam LawRato

820 votes

Sir, the builder is liable to deliver the possession of a flat within the limit prescribed in the advertisement or in the builders agreement. If the same is not done a complaint can be filed against the builder in the consumer forums which can ensure timely delivery of the flat and also provide compensation to the consumers for the delay in possession. The penal rate of interest differs from case to case and in most cases the courts prefer a compromise to be effected between the parties and the builders are required to give an agreed Compensation value to the consumer. However, generally the rate of penal interest is 12% to 18%

Advocate Aditya Gupta LawRato

561 votes

Thank you for your question. There are lot of cases against Builders in the consumer commission for delay in delivering possession. You may consider initiating proceedings against him in the Consumer forum against him. The rate of interest that can be claimed is very variable, it may be in the range of 12-20%. Let us know if you wish to discuss this further.

Advocate Bhoomika Choudhury LawRato

519 votes

In case of delay in delivery of possession by the builder, the legal options that are available to the allottee are to file a consumer complaint or file a civil suit against the builder for the refund of amount paid to the builder and the interest thereon.
In case of undue delay the buyer can also file a complaint before the Competition commission of India if the builder is a dominant entity in the market and using his dominant position to the detriment of the buyer.
The Supreme Court has held that when possession of the property is not given within the stipulated period, the delay is denial of service. Such disputes or claims are not with respect to immovable property but 'deficiency in rendering of service' of a particular standard, quality or grade.

A person who applies for allotment of a building site, or flat constructed by the development authority, or entered into an agreement with a builder or contractor is a potential user and the nature of construction is covered in the expression service of any description.

The Court also held that the compensation awarded by the consumer courts in such cases should serve the dual purpose of recompensing the individual while simultaneously bringing about a qualitative change in the attitude of manufacturers and service providers towards consumers.
In another case the Supreme Court has held that in a specific case, where it is found that the delay was culpable and there is no contributory negligence by the allottee resulting in harassment/injury, both mental and physical, the forum/commission would not be precluded from making an award in excess of 12% per annum.
National Consumer Commission has also held that the buyer is entitled to a refund of the entire money with reasonable interest, and any deduction by the builder is unjustified.

Advocate Manish Kumar Pandey LawRato

782 votes

Hi,

From your query it is not possible to know the complete facts of the case and in this situation it is difficult to clarify and advise you correctly. You are suggested to provide the complete facts.
Thanks and regards

Advocate Ganesh Singh LawRato