Actions Buyers should take if their property is Jammed in a Delayed Real Estate Project
Here are some actions that buyers can take if their real estate project is delayed significantly. Stalled projects are those with absolutely no construction or incomplete activity, while delayed projects are those with minimal progress.
Homebuyers stuck with delayed projects have limited options if insolvency proceedings haven’t already been initiated against the builder. Here’s what homebuyers can do:
The first option is to file a consumer complaint with the Real Estate (Regulation and Development) Authority (RERA) for delayed projects.
Homebuyers are also entitled to payments against delays. The Real Estate Appellate Tribunal (REAT) has been set up to hear appeals against orders passed by the RERA. The REAT can examine the legality of orders passed by the RERA and decide whether to uphold or overturn them.
The legal route
The homebuyers are wanted to pursue the legal route, they can opt for a preferred hearing body or court.
Major cities in India have city-level seminars. But every state in India has a state-level forum. These forums act as consumer courts, where a homebuyer can register a complaint against the developer and seek a refund if possession of the house or flat is delayed beyond one year.
As per the value of the property, buyers can approach the NCDRC in the following courts: For properties worth up to Rs 19 lakh, with the District Commission the complaint regarding the matter should be filed; for properties valued between Rs 20 lakh and Rs 1 crore, grievances should be listed with the State Commission; and for claims exceeding Rs 1 crore, a homebuyer should approach the National Commission, which is at the central level.
Should one sell the property and move on?
In general, the challenge that comes with delayed projects is the loss of money. Hence, seeking an exit may make sense. However, finding a buyer is not easy.
“This is because the property’s value is often compromised due to delay. Most delayed projects have gone slow on other basic infrastructure too.
Continue paying EMIs
Delhi High Court has placed a recent order directing banks, to ask the Credit Information Bureau (India) to restore the creditworthiness of homebuyers who not paying equated monthly installments (EMIs) for delayed projects. In this particular case, the court has come to the rescue of about 1,300 homebuyers stuck with incomplete projects.
Therefore, this solution stated by experts that they warned homebuyers who installed projects not to stop paying their EMIs.