Understanding the consequences of delayed project

A lot of people look towards the real estate industry to invest their lifesavings. They invest in a property either with a view to have their first home or an investment to earn benefits out of it. The Developer / Promoter advertise their real estate projects to fetch prospective buyers and the buyers become Allottee / s on purchasing the property in a real estate project by executing an Agreement. As per the statics, larger number of Allottee / s belong to middle class family who invest their lifetime earnings in purchasing their dream home. Believing upon the representations made by the Developer / Promoter, people invest into a real estate project and accordingly execute an agreement wherein information related to approvals of a real estate project, possession date, terms for default, consideration price, payment schedule, etc., is mentioned in detail. There are instances when Allottee / s make timely payment to the Developer / Promoter but they do not get their dream home on the agreed date of possession mentioned in the Agreement or Allotment Letter.

What are the remedies?

In such a case the Allottee / s have remedy to either continue in the project and wait for possession or to withdraw from the project.

If the Allottee / s decide to continue in the project then they have a right to claim interest on the amount paid by them to the Developer / Promoter as per the terms of the Agreement and provisions of RERA, 2016.

If the Allottee / s decide to withdraw from the project then they have a right to claim refund of all the monies paid by them towards purchase to the Developer / Promoter along with the interest (calculated from the date of making of payment till the date of refund) and compensation from the Developer / Promoter as per the terms of the Agreement and provisions of RERA, 2016.

Whom to approach?

An Allottee can file a Complaint before the Maharashtra Real Estate Regulatory Authority (MahaRERA) for the remedies mentioned above once the date of possession mentioned in the Agreement is lapsed.