Builder project over-delayed and no penalty paid till now

Builder has told project will complete in August 2016, as per agreement if it is not done so after 3 months i.e from Nov onward they will pay penalty. But neither they completed the project nor they are paying penalty. I have email reply from builder saying they will not pay penalty. In a month 2-3 days they work remaining day project progress is zero. They have sold almost 124 flats from 128 Flats . everyone is in dilemma what to do now. Since project is completed more than 70% , not sure how RERA will help in this case. Under RERA builder application is in query. We as consumer are paying loan interrest and hosue rent and it is causing over burden. Please suggest best possible way to handle this situation and give a tight lesson to the builder. So that no other customer will suffer again.

Answers (5)

In Karnataka the act came into existence in month of June-July 2017 and for application of RERA act the builder is suppose to register the project if the same exceeds 500 sq feet ...... All you have a remedy before the consumer forum for delay in delivering the possession and the same amount to deficiency in service and for the same you have to be compensated

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you can approach Consumer forum or RERA seeking compensation for delay. that is the best available option against the builder. It is for all these reasons RERA has been enacted...............................................

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For the delay in delivering the flat, u can approach consumer forum for deficiency in service and seek compensation and u can also claim the interest which u would have paid to the bank. In addition if u are willing to pay court fee u can seek damages from the builder from the civil court.

As per the agreement between you and the builder it is his duty and responsibility to complected the project with in time stipulated as per the agreement. If not you will be having the following remedies:-
1. If their is arbitration clause in the agreement we can initiate a arbitration proceedings or go before the consumer court and simultaneously we should also file a criminal complaint against the builder before the jurisdictional police station.
2. In the arbitration or consumer complaint we can go for the civil remedies for compensation for delay and refund of entire amount along with interest and this is your right and the builder cannot escape.
3. Through the police complaint we can file a case for cheating against the builder stating that he has cheated the consumer by making false promise, cheating and misuse the money paid by you and not refunding the same with interest as promised in the agreement.
4. It is immaterial that the builder is stuck or the delay is for any approval from RERA or any other government agency, it is a settled law as the Honorable Apex/Supreme Court has rendered in many of its judgment stating that "once a builder agrees for a specific date and time is the essential part of the contract it is his responsibility to complete the project at that particular time without any delay and the project has to be completed by all the legal approvals with in that time".
5. We should also focus on police complaint since he has stated that he will not pay the penalty in the reply emails, so it clearly amounts to breach of contract with a criminal intention to cheat you and misuse of your investment. Hence it is advised to go with both civil and criminal cases so that the builder will arrive at a reasonable settlement with in a short period of time.

There is an agreement breach from the builder. You can issue notice to the builder claiming the compensation for relief. The delay in handover the possession is also amount default in service. Here the builder stands as service provider

AS you told, you are paying the interest on the loan, rent, etc. Here under the notice you can also claim damages which arise out of delay with interest. .

Right now you issue notice to the builder in notice you claim damages with interest.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Consumer Court Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

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