Delay in delivery of possession of flat is one of the most commonly faced and frustrating problems for a homebuyer. A homebuyer, who invest his hard earned money in buying a home and fails to get the possession of his/her property on time, not only fails to get his property but also fear losing money, in the form of EMIs on the home loan and paying for the rented accommodation. Furthermore, they have to spend a long and tedious legal battle to get the justice.

Seeing the current real estate market scenario, Government of India told builders in clear voice to fulfill their promises to home buyers and make sure timely possession of their projects across the country. He also emphasized his concerned over the skyrocketing land prices in some cities and told to bring down the land prices to make it affordable for the people.

Naidu further told that government is not asking builders/developers to do anything more that what you have promised to the people. Fulfill what you have promised on the paper, you just complete that.

CREDAI Chairman Irfan Razak’s asked for ongoing projects should be exempted from the new Real Estate (Regulation and Development) Act and should cover only new projects.

The demand came in the background of builders/developers defaulting on providing housing units to the consumer on time during past few years, leading to a huge shout and several litigations in various courts by the suffering buyers.

Although there is a provision if possession is not delivered on time, a buyer can send a notice to the builder, claiming the refund of the amounts paid along with interest and damages. The buyer can also file a consumer complaint about “deficiency in service” as defined under the Consumer Protection Act, 1986 against the builder.

The flat buyer is required to file a written complaint before the appropriate consumer dispute redressal forum set up under the act, depending on the value of the property, or the amount of damage he/she has suffered. Any dispute over Rs 20 lakhs can be directly filed with the State Commission and any dispute over Rs 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than Rs 20 lakhs has to be in the District Commission.

So, to transform the real estate sector, the developer need to change their view and step forward with new business principles and guidelines. Builders/developers should choose digital transaction for bringing in transparency into the sector.

The real estate sector is keen to go ahead on the back of various initiatives of the government including infrastructure status to affordable housing and other tax benefits.

After execution of Real Estate Regulation Act (RERA), buyers who have invested in real estate projects including existing ones to secure interest at 10.9% per annum for delayed possession. In case a buyer is seeking for the refund, they will now be entitled to get the refund on the entire payment at the same rate, and the builders/developers will have to return the amount within 45 days from the claim date. Apart from that, every builder will have to register with the state regulator. Developers of ongoing projects will also have to deposit 70% of the funds collected, but which have remained unused, will have to deposit in Escrow Account within 3 months of applying for registration.

Recent legal judgment indicates better days for home buyers as many builders such as Unitech, Parsvnath Developers, Lodha Group, Sainath Enterprises, Emaar MGF Land Ltd. and Jaypee Group were penalized for the delay in giving possession of their flats.

The decisions by courts, are not only a victory for the buyers but will also benefit the entire realty sector, as it could bring discipline and end the trust deficit, between the buyers and the builders.