Disputes are thing that is unavoidable in any manner. With a number a people from different vision, perceptions, background, thought process coming together to achieve a similar objective some clashes are bound to happen. Construction and repair of property is a business contract between the builders and buyers. The property can be either residential or commercial property. Any dispute arising in such a context is termed a dispute with builders and developers. Today the real estate industry is one most blooming industry in India. The demand for commercial and residential property is increasing frequently and so is the number of developers and builders who offer special features to attract prospective buyers. Also a very important role is played by developers and builders in the redevelopment of housing societies.Due to increasing demand and the offered the promises made to the home buyers does not fulfilled on time. Also no one ensure that the promises will fulfill on time. Non delivery of possession of the house on time is one of the major reasons of conflict between the developers and the buyers. There are various cases where builders have taken more than the given time to finish projects while leaving home buyers to suffer financial loss. Late government approvals, delay in getting raw material, getting the completion certificate, cement and steel procurement, manpower delay etc are the some major issue that contributes to delaying in handling over the possession to the buyers. Whatsoever be the reason, the delay in projects affects the overall budget of a developer and it has also direct impact on the buyer.
A lot of NRIs has invested in the property for commercial or residential purpose at their back home. As NRIs can’t be present all the time to keep a check on the property, they have no choice rather to trust their builders and developers to carry out their part of the agreement. But it has seen that NRIs are the most cheated among property buyers. It is agreed that no one can guarantee a perfect transaction but it pays off to be vigilante.Our government has laid out several remedies in relation to punish the builders and developers in case of misleading. Most of the disputes can be solved out of the court with a timely involvement of experienced NRI lawyers for disputes with developers and builders. NRI lawyers for disputes with developers and builders possess required prowess with words and negotiation skills.
These are the several remedies by which an NRI can approach the judiciary for justice.
By approaching Consumer forum :
This is the most common forum to bring an action against the builder for lack in services under the agreement between the builder and the buyer. The buyer is covered under the definition of “consumer” as defined in Consumer Protection Act 1986 where house is purchased for own use and not for any commercial purpose. In the case where any deficiencies arise in services as per the agreement with the builder, a buyer can file a complaint under Section 12 of the Consumer Protection Act 1986 within two years from the date of a dispute with the builder.
Here the following three-tier machinery for redress of grievances under the act:
- District Forum.
- State Commission.
- National Commission.
File a case before Regulatory Forum
The buyer can also file a complaint with Real Estate Regulatory Authority under section 31 of the Regulation and Development Act, 2016. This authority is specifically constituted for speedy and effective settlement of buyer and builder disputes. Under this act (RERA) if the builder has failed to give possession as per the terms and conditions of the agreement for sale then the buyer if he wanted to withdraw from the project, he can withdraw and the buyer is entitled to receive the amount paid so far and along with the interest.In case buyer wishes to continue with the project than will be entitled to receive interest for every month of delay.
By file a Civil Suit
In case the builder fails to deliver the property on the stipulated time period in the agreement then buyer can file a civil suit as there is a breach of obligations as per the agreement. The home buyer can file a suit in the civil court for injunction/damages or can claim refund of the amount paid to purchase the flat and interest thereof. In case buyer approach the civil court than he can get an immediate order for an injunction under Order 39 Rule 1 and Rule 2 of CPC. However, there is no stringent timeline for adjudication of the suit and hence it can be longer as compared to other alternatives. If you are not a consumer, for instance, if you have bought flats for reselling purposes then you are not covered under the ambit of “consumer” and you can opt for filing a civil suit.
Initiate out of Court settlement
The buyer can also have an option for arbitration if there is an “Arbitration clause” in the buyer-builders agreement. Through arbitration it takes 3-6 months for resolving a matter. There is no trial under this option and no evidence is considered while passing the award.
By filing a Criminal complaint
If the builder has defrauded or cheated then buyer can file a criminal complaint under the provisions of Indian Penal Code 1860 for cheating. In criminal case the trial process is very speedy. The person or builder at fault can be asked to appear before the court and in case of non-appearance; a bailable or non-bailable warrant can be issued against him. The buyer can issue a statutory notice to the builder and in case the builder fails to respond to the notice than the buyer can approach the criminal court. While battling the legal case it is compulsory for the complainant/buyer to bring out all irregularities of the builder.
Though the delay in possession can cause both emotional and financial loss to buyer so instead of weeping and repenting on your decision of investing any project take the appropriate legal steps. Hire a good real estate lawyer and make entire process easy.