Delayed property possession? Here is what you can legally do in India

Buying a home is one of the most significant investments in an individual's life. It brings with it the promise of security and peace of mind. However, for many homebuyers in India, this dream is marred by delays in property possession. Fortunately, Indian laws offer multiple remedies to help homebuyers tackle such delays and seek appropriate legal recourse.

Let us explore the legal options available to homebuyers in India when faced with delayed possession of property.

Why does property possession get delayed?

Before diving into the legal remedies, it's essential to understand why delays happen. Common reasons include:

• Project financing issues faced by the developer
• Lack of regulatory approvals
• Mismanagement of funds
• Legal disputes related to land or a project
• Over-commitment to multiple projects by the builder

While some delays may be genuine, others result from negligence or malintent. Regardless of the reason, homebuyers are legally protected under various provisions of Indian law. Now, let’s understand how to tackle delayed possession of your property.

Legal actions you can take in India

If possession is delayed, buyers are entitled to:

• You can also ask for complete refund, as per RERA provisions
• Section 18 allows buyers to either withdraw or stay invested and earn interest during the delay period.
• Builders can face penalties if they fail to comply with RERA orders.

Alternative Legal Avenues

Consumer Protection Act

If your project isn't RERA-registered or you're unsatisfied with RERA's response, you can approach a Consumer Court. You can seek a refund with interest or compensation for emotional distress or delay-induced losses.

NCRDC Ruling

National Consumer Disputes Redressal Commission allows home buyers to get a refund if possession is delayed for more than one year.

Consumer Court Jurisdiction based on the value of the property

If your property is valued more than Rs.20 Lakhs, you can file a complaint under the District Commission. If your property is valued between Rs. 20 lakh and Rs. 1 crore, you should address the complaint with the State Commission. Lastly, for properties valued for more than 1 crore, you should approach the National Commission.

Suggested Steps for homebuyers

• Check RERA registration

Visit your state's RERA portal to verify project registration and timeline disclosure.

• Document everything

Ensure you have all relevant paperwork, including the builder agreement, payment receipts, communication evidence, and RERA registration information.

• Choose the right legal strategy

Decide whether to file with RERA, consumer court, or initiate civil/IBC action, based on your situation and state availability.

• Initiate legal action

File promptly to claim a refund, interest, or compensation. For RERA, your complaint should be lodged under Section 18/31.

Conclusion

Delayed possession of property is a distressing reality for many homebuyers, but Indian law offers you multiple ways to fight back and claim your rights. The key is timely action. Don't wait indefinitely, hoping for updates from the builder. Be proactive, understand your legal options, and act decisively.