What action can Pune home buyers take if the builder is not giving possession of flats?

Every day we hear about unscrupulous builders and dishonest developers who cheat unaware buyers who put their money to buy a home of their dreams. There isn’t an iota of doubt that project delays could be one of the worst nightmares a buyer could have. What if this nightmare one day comes true and returns to haunt you every night. Buyers borrow money from friends and relatives, banks and financial institutions to fulfill a long desired dream of owning a home but wake up to the grim reality of being made to wait for years to possess it.

It does sound alarming but it seems a common phenomenon happening all around us. However, such delays could happen due to a couple of reasons:

•Working Capital Fund crunch
•Delay or Dispute in receiving Municipal approvals

Such a delay causes a whole lot of frustration and depression, not to mention the huge financial loss the buyer faces. The future surely looks bleak when an EMI is being debited every month and probably the rent for the current rented home also needs to be paid. This mental anxiety is avoidable and there are a few steps buyers can take if the possession of flats is being delayed beyond a reasonable point. Pune has developed a lot in the past few years and there are many new projects being announced by a variety of builders in Pune and its surrounding areas. When faced with such a situation, Pune buyers have a few options they can look at to get possession or recover the costs.

You are eligible for compensation:
In case, the possession of your dream flat has been delayed beyond a reasonable point, as a buyer you are certainly eligible for a compensation from the concerned builder. While signing up the agreement, it would make sense to include a clause to this effect so it can be implemented if needed.

Take the legal route:
Under the Consumer Protection Act, 1986 (CPA), the buyer has the right to lodge a consumer complaint against the builder. This can be filed on the grounds of deficiency in service. Remember that even a single day’s delay can warrant such legal action against the builder and will give a lot of relief to the consumer. For flats under 20 lacs, the District Here are some legal remedies for delayedCommission is the place to file a complaint and the State Commission takes care of properties above 20 lacs. Properties above 1 Crore have to be addressed to the National Commission.

Check your state provisions:
In Maharashtra, it is possible to revoke Section 8 of the Maharashtra Ownership Flat Act 1963 for this cause. Under this Section, the builder/developer is liable to pay the buyer 9% simple interest on the amount received from the buyer if he is not able to justify the delay in handing over the possession.

Domestic Building Contracts Act, 1995:

As per this Act, the builder is liable to give the following warranties:
•All work will be completed in the promised time
•All work shall be done as per the specifications mentioned in the building plan
•All material used by the builder shall be of approved quality
•On completion of work, the building/home shall be fit to occupy
Sections under Indian Penal Code:
The following sections can be invoked against the builder who defaults in giving possession to Pune home buyers:
•Section 420- Cheating and falsely inducing delivery of property. It’s non-bailable & carries 7 years of imprisonment or fine or both.
•Section 406- For Criminal breach of trust. Non-Bailable, three years of prison or fine.
•Section34- Criminal Actions carried out in continuance of common intention

These steps have been created for the benefit of the wronged buyer so use them judiciously and always remember to send a legal notice to the concerned builder so that he has enough time to respond and settle the matter without legal consequences.