Money stuck with the Builder total cost 25 lakhs how to proceed

980 votes

There are two legal options available for you after you have exhausted mutual settlements.
One you may approach consumer forums and other you may approach to RERA for your remedies. The details of your agreement etc shall be needed

Advocate Om Shanker Shrivastava LawRato

696 votes

Dear Citizen,
Misconduct and delays on part of builder are a constant phenomenon in the Real Estate Sector. People investing on these properties are advised to be vigilant towards regular follow ups.

You are fairly lucky because the current laws have seen a shift towards "buyer friendly". It is my understanding that you have paid a hefty sum of money towards completion of the shop. Ideally this property should have been delivered to you by the builder within the given time frame. Failure on part of the builder attracts penalty that is payable by him to you. Needless to mention he is still obligated to deliver the relevant property to you.

The builder in your case is required to register himself with Real Estate Regulatory Authority under S.3 (Proviso Clause) of RERA Act, 2016. As per S.17 of the Act, the promoter is required to execute a registered conveyance deed in favour of the
allottee along with the undivided proportionate title in the common areas to the association of the allottees or the competent authority, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may. be, in a real estate project, and the other title documents pertaining thereto within specified
period as per sanctioned plans as provided under the local laws. Therefore your builder has done breach by way of not handing over the property to you in time.

Since the builder in your case has failed to complete the project in time therefore as per S.18(1) of the Act he shall be liable on demand to the allottees, in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the case may be, with interest at such rate as may be prescribed in this behalf including compensation. If you have a reason to believe that he might not be able to complete the project even in future, then it is highly recommended that you should take out your money from his project along with interest and compensation and invest it somewhere else.

Alternatively if you do not seek to withdraw then as per S.18(1) (Proviso Clause) you are entitled to be paid, by the promoter/builder, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed.

It is also pertinent to mention that the promoter is required to compensate the allottees in case of any loss caused to them due to defective title of the land, on which the project is being developed or has been developed, in the manner as provided under this Act, and the claim for compensation under this subsection shall not be barred by limitation provided under any law for the time being in force. Make sure that this is not the case in your matter by going through the authentic title deeds.

You are required to file a complaint first under S.31 of the Real Estate Regulatory Authority Act, 2016 before RERA. It will cost you a certain amount of nominal fee. Once the forum starts adjudicating on this matter, it is recommended that you should engage an advocate so that he can extract decent compensation for you.
It is also pertinent to mention that RERA is established in every state of the country. Eg. For Madhya Pradesh, it is in Bhopal. You need to address your complaint to the right forum exercising territorial jurisdiction.

I would also like to inform you that District Consumer Forum has also been a competent authority in terms of providing adequate compensation to the allottees where builders have made such a default. But please try to understand that you cannot initiate two parallel proceedings. It is highly recommended that you opt for RERA as it is an expert body on this matter. Further S. 71 of the RERA Act states that any person whose complaint in respect of matters covered under sections
12, 14, 18 and section 19 is pending before the Consumer Disputes Redressal Forum or the Consumer Disputes Redressal Commission or the National Consumer Redressal Commission, established under section 9 of the Consumer Protection Act, 1986, on or before the commencement of this Act, may, with the permission of such Forum or Commission, as the case may be, withdraw the complaint pending before it and file an application before the adjudicating officer under this Act. Therefore there is a clear bar on parallel proceedings.

Currently we are dealing with several such Real Estate misconduct cases. Our office specializes in economic offence and Real Estate matters. We can accelerate the process of getting relief by way of legal procedures. Feel free to contact us through Lawrato. Good Luck with your case.

Regards,
Adv. Apoorv Pandey

Advocate Apoorv Pandey LawRato

503 votes

Now that a Real Estate law is prevailing/existing, you can file a complaint case to that forum, subsequently you can also file a complaint/case of cheating and mis appropriation of money I.e U/S 420, 406 IPC to the police or to the civil court

Advocate Manish Kumar Tiwari LawRato