Option when abnormal delay by builder in giving possession.

Save Share

This query is : Resolved

Quick Summary

If your builder is significantly delaying project possession beyond the RERA-stipulated date, even with COVID extensions, you may be entitled to a refund. While builders might cite natural calamities like COVID-19, if progress is extremely slow, you might have grounds to claim your money back with interest. It's advisable to seek legal counsel to understand your specific rights and the best course of action, especially if you wish to withdraw from the scheme.

K.G.Shah

K.G.Shah (Querist)

16 July 2021 Mr.A booked flat on ongoing scheme . Possession was expected as per RERA in Dec.2022. Due to covid RERA has given extension of 6 months. Total 5 buidling of 22 floor is to built up. Till date only two building work upto 5 floor is completed. It is highly impoosible that builder can build within june 2023. The work is going on at tortise spped and explaination of covid is given by builder. Mr.A has paid 25 lakhs out of 65 lakhs. He does not want to continue in the scheme and invest more amount and wish to quit from scheme. What is remdy to Mr. A. He can claim for refund from Builder. What will happen if he doest not remitt further demand. A is senior citizen and cant fight legal . What us best remedy ? Please give expert reply .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 July 2021 You can certainly get your money back with interest as the builder failed to fulfill his part of the contract and his promise to refund.
Send him a legal notice demanding refund of the money as the project has dragged on endlessly.

K.G.Shah

K.G.Shah (Querist)

17 July 2021 Thanx sir for quick reply. I have some doubts on following.
1) Wheher Builder can say that time limit of completion is not yet over . So Inhave to wait .
2) He can say that delay is due to natural claimity ( CORONA) and not at his own fault . Under RERA it is required buyer has to prove that fault is due to builder own and not any natural clamity.
3) Whether if further demand raise , buyer is bound to pay or can quit now also. Project was started in 2017 and within 4 years only 15 % is over.
4) Sir can u suggest any layer name who can make help me for refund.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 July 2021 1 yes he will say. So you have to wait.
2 yes, he will say natural calamity, no body can refuse.
3 Buyer is bound to pay, you can't quit before agreed completion date.
My advice is wait and take over. Builder has valid reason of corona.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now