Legal Remedies for the Homebuyers of Stalled Real Estate Project

Status as on- 14/03/2023

Homebuyers in India have a few legal remedies available against builders in case of disputes or grievances. Here are some of the most common ones:

File a complaint with the Real Estate Regulatory Authority (RERA):RERA is a government body set up to protect the interests of homebuyers and regulate the real estate sector in India. If you have a complaint against a builder, you can file a complaint with the RERA in your state. The RERA can help you resolve disputes related to delayed possession, substandard construction, or any other issues related to your property.
Approach the National Consumer Disputes Redressal Commission (NCDRC): If you have exhausted all remedies available at the state level, you can approach the NCDRC, which is a national-level consumer forum. The NCDRC hears complaints related to consumer disputes where the amount involved is more than Rs. 1 crore.
File a case in the civil court: Homebuyers can also file a civil suit against the builder in a court of law. This can be done if the builder has violated any agreement, committed fraud, or any other breach of contract.
Form or join a homebuyer’s association: Homebuyers can also form or join an association of other homebuyers who have invested in the same project. This can be a collective platform to raise concerns with the builder and negotiate for a resolution.

In India, homebuyers face a number of challenges when dealing with builders. These can include delays in project completion, lack of transparency in pricing and construction quality, and even fraud or misrepresentation on the part of the builder. To protect homebuyers from these risks, the following measures could be taken:

Regulatory Framework: The Indian government has established regulatory bodies such as the Real Estate Regulatory Authority (RERA) to oversee the real estate sector and ensure that builders adhere to established guidelines and standards. Homebuyers should ensure that their builder is registered with RERA and that their project is in compliance with regulations.
Contracts: Homebuyers should carefully review the contract with the builder before signing it. The contract should specify the timeline for completion, payment schedule, and penalties for delays or breaches of the contract. Homebuyers should also ensure that the contract includes a clause for arbitration in case of disputes.
Site Visits: Homebuyers should visit the construction site regularly to check on the progress of the project and ensure that it is being built according to specifications. They should also take photos and document any discrepancies.
Payment Structure: Homebuyers should ensure that payment is linked to the progress of the project, rather than paying the full amount upfront. This will ensure that the builder is motivated to complete the project on time and to the required standards.
Quality Checks: Homebuyers should hire a third-party inspector to check the quality of construction at different stages of the project. This will ensure that the builder is following the approved design and using quality materials.
Due Diligence: Homebuyers should do their due diligence before investing in a property. They should research the builder’s reputation and track record, and also check for any pending legal disputes.
Consumer Forums: In case of any dispute, homebuyers can approach consumer forums such as the National Consumer Disputes Redressal Commission (NCDRC) or State Consumer Disputes Redressal Commission (SCDRC) for redressal of their grievances.

By taking these measures, homebuyers can protect themselves from builders in India and ensure that they get their dream home without any hassles.

It is important to note that before taking any legal action, it is advisable to try to resolve the issue amicably with the builder through negotiation or mediation. This can save time, money, and effort for all parties involved.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinions before relying upon the article. For more information, please contact us at ibc@centrik.in.