Legal Remedies if real estate project is stucked

Legal Remedies if real estate project is stucked
  • General
  • Monday 18th October 2021
  • Author: Nidhi Verma

Highlights

  • Section 18 and Section 31 of the Act provides that the allottee through an Advocate, Company Secretary or Chartered Accountant or by himself file a Complaint with the Designated authority of Real EstatAe Regulatory Authority (herein referred to as “the RERA”) set up under the jurisdictional State or Union Territory.

  • The RERA shall issue notice for Compliance of the Order and provide some time for submission of required documents to proof that the Builder has complied the Order of the Court.

Real Estate Sector, which seems to be one of the major contributors in the inclusive growth of the nation with the contribution of around 8% of total GDP. Remarkable performance of this Industry with the involved substantial transactions has fetched the government attention to make proper policy and regulation for the real estate sector. Apart from this, the sudden downfall in the Real estate sector due to Statutory & Regulatory changes, diversion of funds by the Builder, Legal disputes pending with the Regulatory authorities as well as Farmers led to a deep-seated transformation for which the Real Estate (Regulation and Development) Act, 2016 (herein referred to as “the Act”) came into force in 2017.

At the time of enforcement of the Act, many Real estate projects were stalled in which many buyers invested their hard-earned money and were neither given possession as per the agreement entered with the Builder nor got a refund of their hard-earned money. Such a situation was handled by the Act which provided provisions to help out these buyers through the legal process.

Following are the legal solutions that an allottee must avail if he is also stuck in one of these stalled Real Estate Project:

A. Taking possession of the property along with delayed interest and penalty, as applicable

  1. Section 18 and Section 31 of the Act provides that the allottee through an Advocate, Company Secretary or Chartered Accountant or by himself file a Complaint with the Designated authority of Real EstatAe Regulatory Authority (herein referred to as “the RERA”) set up under the jurisdictional State or Union Territory.
  2. The RERA shall review the Complaint and if thought fit, shall admit the case and issue notice to the Builder to Show Cause, why the relief should not be granted to the Complainant under Section 18 of the Act.
  3. The allottee has the right to get possession of the alleged property along with the Interest on delayed period at such rate as may be determined by the Court.
  4. The RERA on considering the merits of the Case may dispose off the case or pass orders for possession of the property along with delayed period Interest and penalty, if any.
  5. If the Builder does not adhere to the Court orders, then the Complainant can also proceed for filing Execution of the Order passed  by the Court and get its order executed.
  6. The RERA shall issue notice for Compliance of the Order and provide some time for submission of required documents to proof that the Builder has complied the Order of the Court.
  7. If still the Builder does not comply with the Execution of Order proceedings, the RERA shall proceed with proceeding under Section 63 of the Act in which the Builder shall be liable to pay 5% of the total cost of the project along with relief awarded to the Complainant.

B. Withdrawal from the Real Estate Project 

  1. Section 18 of the Act also provides that if the Allottee does not wishes to continue in the Real Estate Project then such allottee through an Advocate, Company Secretary or Chartered Accountant or by himself, file a Complaint with the Designated authority of Real Estate Regulatory Authority (herein referred to as “the RERA”) set up under the jurisdictional State or Union Territory.
  2. The same process as mentioned in the above paragraph (A) 2 to 7 will be followed and the allottee can get the refund of the money invested along with interest, as may be determined by the Court.
  • In case, the Complainant is aggrieved by the Order of the RERA, then he may approach the Real Estate Appellate Tribunal to file appeal against the order passed by the respective RERA within 60 days from the date on which a copy of order was received.
  •  In case, the Complainant is aggrieved by the Order of the Appellate Tribunal , then he may approach the jurisdictional High Court to file appeal within 60 days from the date on which a copy of the order was received.

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