What if the builder refuses to pay interest for the delay?
In case a builder refuses to pay interest for the delay in the possession of the flat to the buyer, due to various changes and amendments in the real estate laws the regulation of real estate laws is expected to become really well after the implementation of RERA. the various steps which can be taken
1. An online complaint can be filed under the respective state of RERA, as the provisions of RERA are quite strict and regulation is very effective, No builder whose project is registered under RERA can go wrong with the buyers after the implementation of RERA. A buyer can file a complaint before the RERA under which if a builder delays possession, imprisonment can be awarded which may extend to 3 years along with the interest & penalty of 10% of the entire cost of the project can be imposed on the builder
2. A can be filed before the local court wherein the court shall award the compensation for delay and also mandate the builder to either deliver the flat to the buyer or to refund the deposit along with the interest and compensation. In case after the decree is issued and the builder refuses to pay the interest, the builder has to face civil imprisonment.
3. A consumer complaint can also be filed against the builder before the commission wherein as per the ruling of the National Commissions the consumer has right to get refund along with compensation and litigation cost when a builder delays possession beyond the agreed time and failing to this the builder has to face dire consequences.
4. Forming associations and groups with other buyers also put pressure on the builder wherein all the builders collectively move to a higher Authority/court. There are various judgments of the Hon’ble Supreme Court of India wherein interest is imposed on the builder for delay in possession, for doing fraud, for defects in the construction, for using substandard goods in the construction. And in the case when the interest is not paid by the builder and in case of not abiding by the directions of the Court the builders are sent to jail.
Nowadays due to the implementation of RERA, the regulation of real estate has become really effective due to the harsh and strict provisions against the builders and in the favour of the buyer. Hence, builder faces dire consequences nowadays in case of nonpayment of interest on delay.
1. An online complaint can be filed under the respective state of RERA, as the provisions of RERA are quite strict and regulation is very effective, No builder whose project is registered under RERA can go wrong with the buyers after the implementation of RERA. A buyer can file a complaint before the RERA under which if a builder delays possession, imprisonment can be awarded which may extend to 3 years along with the interest & penalty of 10% of the entire cost of the project can be imposed on the builder
2. A can be filed before the local court wherein the court shall award the compensation for delay and also mandate the builder to either deliver the flat to the buyer or to refund the deposit along with the interest and compensation. In case after the decree is issued and the builder refuses to pay the interest, the builder has to face civil imprisonment.
3. A consumer complaint can also be filed against the builder before the commission wherein as per the ruling of the National Commissions the consumer has right to get refund along with compensation and litigation cost when a builder delays possession beyond the agreed time and failing to this the builder has to face dire consequences.
4. Forming associations and groups with other buyers also put pressure on the builder wherein all the builders collectively move to a higher Authority/court. There are various judgments of the Hon’ble Supreme Court of India wherein interest is imposed on the builder for delay in possession, for doing fraud, for defects in the construction, for using substandard goods in the construction. And in the case when the interest is not paid by the builder and in case of not abiding by the directions of the Court the builders are sent to jail.
Nowadays due to the implementation of RERA, the regulation of real estate has become really effective due to the harsh and strict provisions against the builders and in the favour of the buyer. Hence, builder faces dire consequences nowadays in case of nonpayment of interest on delay.
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