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Builder causing a delay in giving possession

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I booked a 1 BHK property in Navi Mumbai Taloja in 2013, all formalities were completed and I paid 20% and EMI started from May 2013. Now the builder causing a delay in giving flat. However, we haven’t received the possession and the construction work went on hold in 2015, post which the builder is not responding and multiple people have filed a complaint – Enkay Gardens Taloja, Panvel.

I am paying EMI endlessly and there is no returns and progress, I want to withdraw and claim a penalty for delay and interest on the paid amount till date.

You should immediately file a complaint before the Real Estate Regulatory Authority (RERA). If the builder causing a delay in giving possession he is responsible to return the amount with interest. He has no right to stall the project for an infinite period. 

RERA has such power and you will get your hard-earned money with interest. You will not suffer the loss because of the fault of your builder. 

When builder causing a delay

In Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725 the Supreme Court has held that “the buyer should not be compelled to take delivery of flat when there is a delay in delivery of possession by the builder.”

The court further held that the builder should refund the amount with compensation/interest. When the builder did not fulfil his commitment he cannot get the benefit of his own fault. He has to return the amount with interest. 

Selling of flat is a contract and builder must perform his contractual obligation. Time is the essence of this kind of contract. If there is delay the buyer has the right to cancel the contract without any notice.

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Occupancy certificate or completion certificate is an important document because it proves that the flat is fit for occupancy or living. It also proves that the builder has constructed the builder as per the permission granted by the competent authority. If a flat buyer takes possession in absence of occupancy certificate it may cause harm to his property rights.

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