In this article, we will look into the problem of delayed possession by Jaypee Builders to the buyers. This article will further discuss the remedies for the same, and most importantly, the way that we can help you in getting your money back.

·        Facts: Many people booked flat in Jaypee Greens, Greater Noida around a decade ago. These people were not provided possession of their flats as the project was not completed. And when people asked for their money back, the builders became bankrupt, thus were unable to pay back these buyers.

·        Legal Claim: In this situation, people can file a legal claim against the Builders for the return of money. Below is a small guide to help you with a situation like this.

·        Important point to check when possession is getting delayed: Below are some points which will be important for you to see when the possession is getting delayed –

1.     Check you Contract – Most of the contracts provide an estimated stipulation of the time period for the construction. You should read the contract properly to see for this time period. Often, the builders insert a clever clause in the contract which will help them escape liability. As per the RERA provisions, a contract must mandatorily provide a completion time and the ate of delivery, to enable buyers to reject the deal in case the construction is taking long.

2.     Reasons for Delay – Builders take advantage of many compelling reason like demonetization, which was help to be a valid reason causing delay by the courts. Others reasons like shortage of labour, unavailability of construction material or changes in governmental regulations have also been allowed. However, the reasons for commercial hardship such as an increase in prices of inputs, rejection of construction plans by municipality etc. have largely worked to the disadvantage of builders.

3.     Payment of Compensation under RERA Rules – If the builder causes delay without any justification, and the delay is deemed appropriate by the court, then the court can order compensation of up to 10% of the property price. This order overrides any other clause given in the contract which talks about a minimum penalty for delay.

4.     Refund of Money deposited– In many cases, where the construction has just started or not began, and then the court orders for complete refund of the amount deposited by the buyer. This is done to enable the buyer to invest their savings in buying any other property. Also, under the RERA Rules, builders are under obligation to keep the funds received form the buyers in a separate account, to make the process easy.

5.     Refund of Cost of Litigation – The Court, if satisfied that the complaint of the buyers was genuine and that it caused hardship may also order the builders to pay the entire cost of litigation.

6.     Punishment to Builders – In case, the delivery is getting delayed, builder stands not only to lose the registration of the project but may also be liable to an imprisonment for a term which may extend up to three years or with fine which may extend up to 10% of the estimated cost of the real estate project, or both.

·        Ruling of the Supreme Court: In October 2018, Supreme Court ordered refund in many cases where builders like Jaypee and many others are not handing over the flats within the deadline.

·        How can we help?

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