What is the compensation from Bangalore Apartment builders , if the delay the project more than agreement date ?
Any RERA compensation , ijust heard but not found any details regarding those. I am about to sign the sale agreements, where it mentioned if any delay compensation as per RERA rules.
Posted on 24th Nov, 2018
Answered on 1st Dec, 2018
Yes, you will get 10 percent. The RERA RULES are as follows and read its judgments on its following site.
RERA: Homebuyers to get 10% penalty for delay in projects, but is that enough?
There are a number of clauses in the Act that aims toward protecting the buyer's interest and envisage a transparent system in the real estate sector.
In a bid to protect the interest of homebuyers as well as weed out non-serious and unscrupulous players from the market, the Real Estate (Regulation and Development) Act, 2016 (RERA) has proposed heavy penalties on builders who will henceforth either delay their projects or won't comply with RERA norms.
For instance, RERA recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non-compliance with the Act. Moreover, in case of any structural defects arising within five years of handing over the possession of project to buyers, developers will be liable to rectify such defects without further charge.
If a project is delayed, which has become the sector norm today, developers are required to pay 10% interest to the buyers on the invested amount as against the Rs 5 to Rs 10 per sq feet penalty contracted in the sales agreement. It may be noted that a majority of developers are currently charging 12% to 18% going up to 36%. In some cases interest from buyers for any delay in payment, while they themselves usually pay in the range of Rs 5 to Rs 10 per sq ft even in case of a luxurious project, which is not a fair deal to buyers.
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Answered on 27th Nov, 2018
Yes, you are entitled to claim compensation in case of delayed flat possession under Section 18(1) of the Real Estate (Regulation and Development) Act, 2016, or commonly known as RERA.
Section 18 lays down that in case of a delay in possession where the dates were specified by the promoter at the time of the sale of the flat, but the possession was not delivered by the builder, the allottee or home buyer is entitled to recover interest from the promoter at the prescribed rate. For this, the home buyer can file a complaint under RERA against the builder with the RERA Authority of the State in which the property is situated.
A complaint against the builder begins with sending a legal notice to the builder with the help of a RERA advocate in India, to ask the builder to refund the amount paid to the builder, along with interest from the date on which the delay in possession began. The rate of interest is currently 12% and 18% when the builder delays possession even after the order of RERA.
READ: Timeline Of A Complaint Under RERA Against A Builder
However, an important thing to keep in mind is that RERA is not notified by all the states. In order to claim compensation from the builder for delay in delivery of possession when RERA is not notified by the state, you can file a consumer complaint against the builder.
A consumer complaint against the builder is filed on the grounds of deficiency in service and you can hire a property lawyer in India to file your consumer case in the appropriate consumer forum. There are 3 types of consumer forums and a complaint is filed depending upon the total value of the matter, in your case, the value of the property. The three consumer courts are:
District Consumer Dispute Redressal Forum: It accepts cases which have the total value of less than Rs. 20 lakhs.
State Consumer Dispute Redressal Commission: It accepts cases which have the total value of more than Rs. 20 lakhs, but less than Rs. 1 crore.
National Consumer Dispute Redressal Commission: It entertains cases which have the total value of more than Rs. 1 crore.
If your property value is more than Rs. 1 crore, property experts suggest that a complaint with the NCDRC is better than a RERA complaint.
Also, you can file a consumer complaint against the builder by combining your application with other home buyers who are seeking refund from the same builder and filing a class action against the builder.
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