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Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

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Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

Last updated: March 14 2015
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  • Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

    Dear Gents ;

    In the event of start of construction being delayed by the builder indefinately what legal safegaurds are there to protect the interests of the customer and prevent the Builder from holding the invested money indefinately ?

    What action shall be advised in such a situation especially as there is only provisional allotment letter and not even a builder -buyer agreement?

    Can the customer unilaterally cancel the booking and seek refund of money ? Is it a legal right ?

    Can the property ( ie investment ) be resold at this stage ; to seek exit , even without a builder buyer agreement?

    Shall appreciate advice from seniors , experts ......
    Last edited February 21 2014, 06:02 PM.
  • #2

    #2

    Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

    You can always resell depending upon the terms and conditions listed in allotment letter. Otherwise there are not many safeguards to protect investor's interests in case a builder decides to indefinitely delay the project. Most of the builders who deliberately delay the projects are the ones who have good political protection or are owned by the politicians themselves. So law of the land is not applicable on them. You can approach economic offense wing of the state police but they also don't take any actions against builders due to political pressure.

    Developers in Haryana are covered by "The Haryana Development and Regulation of Urban Areas Act 1975" and "The Haryana Development and Regulation of Urban Areas Rules 1976". You can easily find these laws using google.

    Under this act developers are required to apply for a license and the license is issued for a limited duration such as 2 years in many cases. With the application for renewal, developer is supposed to submit his reason for failure for completion of work in stipulated period. DTCP is supposed to verify the genuineness of the reasons stated by developer but due to obvious reasons they don't.

    Under the above mentioned law, DTCP is empowered to takeover an incomplete project and complete it and then recover the money spent for project completion from the developer. I have never seen any case where DTCP exercised this power becuse that that will hurt the builder's interest and once again politician-builder mafia comes into picture to protect the builder's interest.

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    • #3

      #3

      Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

      Few days ago while watching NDTV property show I heard that there is as such no laws to protect consumers..
      Unless and until Regulator comes into picture EndUsers are at the Mercy of Builders..
      And most BBAs are also favoring the Builder, so if you want to safeguard yourself then you need
      let Builder know about the issues in advance..

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      • #4

        #4

        Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

        Thanks gents for your valuable inputs.So sad that there are no laws governing this for a country which boasts of the foundations of its democracy.Wonder then how a court shall dispense a petition / complaint in this connection saying that " there are no laws applicable available ....." ?.It must also be affecting investments in this sector especially the foreign investors may not invest in an unregulated sector.I head the real estate regulatory bill was passed but wonder when it shall be actually inacted ....

        Given the present state of investments in real estate it must also not be worthwhile to invest in an unregulated sector..
        Last edited February 25 2014, 06:46 PM.

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        • #5

          #5

          Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

          How can we assume that there is no law to deal with it? Granted there may not be a specific law for this, but after a reasonable time of inaction by builder, it will be considered a fraud, a fraudulent scheme and action under relevant criminal laws will be a possibility, the definition of reasonable will be whatever time other builders are taking plus some.

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          • #6

            #6

            Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

            i was booked a flat in noida in may 2012 but buyer is still not start the construction.Now he is say that either i have to shift on his other project else they will give money when he will get.Please advice what to do.

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            • #7

              #7

              Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

              Are pre-launches legal?
              Is the case where construction has not begun any different from pre-launch?

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              • #8

                #8

                Re : Laws Safeguarding Buyers' Rights In The Event Of Delayed Projects

                Originally posted by aurnav View Post
                i was booked a flat in noida in may 2012 but buyer is still not start the construction.Now he is say that either i have to shift on his other project else they will give money when he will get.Please advice what to do.
                if u r from UP then contact some local leaders only they can solve ur problem.

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