Status as on 9/10/2019
Home is a very basic need of every Human. Moreover, in modern society, having a beautiful home is a dream for many people. Everyone wants to buy his own home; thus, a huge demand for homes is growing day by day in our society. Possessing a property in India is one of the extreme achievements and is one of the most profitable investments in India. All this lead to a great boom in the real estate sector which was devoid of any fixed legal regime and was majorly covered by the Consumer Protection Act.
What if these home builders do not fulfill their promise of giving your dream home?
LEGAL REMEDIES FOR HOME BUYERS
The homebuyer can approach Authorities or Courts either under the Real Estate (Regulation and Development) Act, 2016 (RERA) or under the Consumer Protection Act (CPA) or under Insolvency and Bankruptcy Code (IBC),2016.
The Real Estate (Regulation and Development) Act, was established to protect the interest of homebuyers. If a builder delays in the completion of the flat, the buyers can file a complaint against the builder under Section 31. As per Section 18 of the act, if the builders fail to handover the possession of the property as per the agreement, then homebuyer may either cancel the agreement and ask for a refund or can continue with projects and claim for interest for the delay period.
In the recent judgment given by the High Court of Delhi in the matter of M/S M3M India Pvt Ltd & Anr vs Dr. Dinesh Sharma & Anr, the courts observed that the home buyer can seek remedies under the CPA as well as RERA. But claiming remedies under the RERA is more effective as shorter dates are easily available and the recovery process is very quick.
On the other hand, homebuyers can also approach NCLT under IBC, a homebuyer being a financial creditor can file an application under section 7 of the code before the NCLT for the commencement of insolvency process against the debtor (builders) the buyer for committing default.
So, no need to worry, nobody has the right to break your dream of having own home. If you have given your hard-earned money to builders and got nothing in return excepts problems and tensions, if they are delaying in giving possession or not giving the property as per the agreements, then you have all the above-mentioned legal remedies under a law which are time and result effectively.
Disclaimer – The above article is based on the personal interpretation of related laws and judicial pronouncements, which may differ from person to person. The readers are expected to take expert opinion before placing reliance on it. For any clarification, please write back at email@example.com or call at 8383011629