Home | Legal Advice | question and answer | Builder causing a delay in giving possession

Builder causing a delay in giving possession

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.

Lawyer’s advice

Builder is not returning my booking amount

Hello sir, I have booked a flat in Lucknow, the builder said that the time of booking that the project will accomplish in the year 2017. After taking faith upon him, I paid one lakh rupees as booking amount in the year 2015. When I visited the site in the year July...

Claim refund of money against the builder under RERA

Section 18 of the Real Estate (Regulation And Development) Act, 2016 (RERA) entitles the flat buyer to claim a refund of money and compensation for any loss from the builder. If the builder did not complete the project within time he shall be liable to refund the money with interest.

Kanoonirai established in 2014. It provides a facility to consult a lawyer through online media, telephonic consultation and video conferencing.