What to do when a Builder Delays Possession of Property?

It can be incredibly stressful to spend your hard-earned money on a house, apartment, or other property and not receive it on time. Additionally, when the builder refuses to answer your calls and repeatedly delays the delivery of your dream home, it drains all of your strength, concentration, and tranquilly. You lose money in EMI and rent payments, but you also risk upsetting your family’s peace of mind by going through this mental anguish. Legal battles are tedious and exhausting to fight. You have nightmares about serving the builder with a legal notice.

This ongoing issue has been hurting the real estate industry for years. This was one of the factors that led to the creation of RERA, a sector-specific forum that the government felt was necessary. More than 3 lac home purchasers in Delhi NCR alone are reportedly waiting for possession despite paying 90% of their payment, according to estimates. While you are renting an apartment, it is difficult to continue paying interest to the bank. The long-cherished Indian ideal of owning a home was transformed into a nightmare. It is necessary to have a possession certificate in order to move into or use a property since it certifies that ownership has changed hands.




The RERA has given purchasers more power, but the recent realisation that they can contact numerous forums like NCLT and NCDRC has frightened rogue builders and disrupted the real estate market. However, after the dust settles, buyers will find it simple to own homes and apartments.

This blog post discusses your legal options if the builders unreasonably delay giving you possession of your apartment. “If you purchase a condo and the builder continues to postpone giving you ownership, you may file a formal complaint with the appropriate dispute resolution forum, referencing the cost of your condo or the extent of your losses. According to Advocate, disputes between 20 lakhs and 1 crore can be lodged with the SCDRC, while those beyond 1 crore can be submitted with the NCDRC in New Delhi..


“You can also file a complaint to RERA of your respective state claiming your refund along with the interest or damages,” 

Under the RERA Act of 2016, a buyer may register a claim and provide the builder legal notice of the delay in possession, or they may move their claim from a CDRC to the State Real Estate Regulatory Authority. This Act mandates that a builder who delays the delivery of apartments must pay 10% interest on the property’s worth. Home buyers who are upset can take their complaints to one of three forums.:

·         Real Estate Regulatory Authority (RERA): 

RERA is a court that is specifically designed to handle disputes that arise in the real estate industry. The RERA Act, which was established in 2016, is still being developed. It has jurisdiction over all real estate cases through its appellate body, the RERA Appellate Tribunal. Any claim amount may be the subject of an RERA complaint, but a complaint cannot be lodged if the occupancy certificate has already been issued. It enables purchasers to receive a full refund of their cash plus interest or monthly interest up until the builder hands over possession..

RERA Act clears out each case typically within 60 days and its court fees vary from Rs. 1,000 to Rs. 5,000 for different states with the litigation costs within Rs. 25,000 to Rs. 75,000 (with execution).

·         Consumer Forum:

The 1986 Consumer Protection Act gives consumers the right to protest to the function Object() { [native code] } about “deficiency in service.” With its Appellate Body District Forum to SCDRC (State Consumer Dispute Resolution Commission), SCDRC to NCDRC (National Consumer Dispute Resolution Commission), and NCDRC to Supreme Court, this statute has been successfully formed since 1986. According to this law, purchasers may make complaints in the dispute forum for claims of up to Rs. 20 lakh, in the SCDRC for claims of between Rs. 20 lakh and Rs. 1 crore, and in the NCDRC for claims of greater than Rs. 1 crore. It allows customers to receive a return with interest or delayed possession in exchange for compensation for emotional distress, legal fees, etc..

According to the statute, the Consumer Forum takes approximately one or two years to resolve a matter and charges between Rs. 2,000 and Rs. 5,000 as court costs. The District Forum’s legal proceedings cost approximately Rs. 10,000–20,000, Rs. 30,000–60,000 for SCDRC, and Rs. 60,000–2,000,000 for NCDRC..

·         National Company Law Tribunal (NCLT):

Under the 2016-enacted Insolvency and Bankruptcy Code, the buyer may start insolvency procedures if the builder is unable to complete the real estate project. This well-known statute, which has an appeals body in the National Company Law Appellate Tribunal (NCLAT), resolves disputes for registered firms with poor financial standing that total more than Rs. 1 lakh. By allowing them to collect their share at liquidation and compensating the owner with the company’s dissolution,.

According to the statute, it normally takes 9 to 12 months to get a verdict in a matter. Its court fee is Rs. 25,000, and the litigation costs range from Rs. 60,000 to Rs. 1,50,000 for individuals and from Rs. 30,000 to Rs. 50,000 per person for NCLT Group (10+)..