Is your dream of owning a home being delayed while you continue to pay regular home loan EMIs along with monthly rent to your landlord? For thousands of homebuyers who have invested their hard-earned money into buying their dream home, a stalled real estate project can be a nightmare. This situation not only ties up their funds but also forces them to bear high out-of-pocket expenses, including regular home loan EMIs, monthly rent, and the loss of opportunity cost.
Homebuyers facing over a decade of delay in securing ownership from their builder can closely relate to this stressful situation. Such delays affect an individual’s financial stability and create immense stress and uncertainty about their future living arrangements.
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In this article, we will discuss five actions you should take as a homebuyer if you find yourself in a similar situation:
1. File a Complaint with RERA
The RERA Act 2016 entitles a homebuyer to claim a refund or interest if they wish to exit a project where possession is delayed. Filing a complaint with the Real Estate Regulatory Authority (RERA) can initiate this process.
2. File a Plea with NCLT
In cases of unjustified delays, consider initiating insolvency proceedings by submitting a plea to the National Company Law Tribunal (NCLT). The NCLT will assign a resolution professional (RP) to create a plan with the Committee of Creditors (CoC). If 66% of the CoC members approve the resolution plan, it will be implemented. If the required support is not obtained, the real estate company will be liquidated.
3. Go to the Consumer Court
If the possession of a property is delayed by more than a year, buyers are eligible to ask the developer for a refund. Complaints should be registered with the appropriate Consumer Court based on the property value:
- District Commission for properties worth up to Rs. 20 lakh.
- State Commission for properties worth between Rs. 20 lakh and Rs. 1 crore.
- National Consumer Disputes Redressal Commission for properties valued over Rs. 1 crore.
Also Read: Home Loan Top Up vs Home Loan Balance Transfer
4. Register a Complaint with the CCI
Following the Competition Commission of India’s (CCI) order against real estate developer DLF in 2011, several homebuyers filed similar complaints. However, this route is less preferred now due to the introduction of RERA. Still, filing a complaint with the CCI remains an option for seeking resolution against unfair practices by developers.
5. Get Help from the SWAMIH Fund
The central government started the Special Window for Affordable and Middle-Income Housing (SWAMIH) Scheme in 2019 to provide last-mile funding for stalled projects. To be eligible for SWAMIH funding, projects must meet the following criteria:
- The project is stalled or likely to be stalled due to a lack of funds.
- At least 90% of the available FSI/FAR is being developed as Affordable Housing units or Mid-Income Housing units.
- The project is net worth positive (value of sold receivables plus unsold inventory is greater than the cost to complete construction and service the investment by the Fund).
- At least 30% of the construction and development is completed.
- The project requires last-mile funding sufficient to complete construction.
- The project is RERA-registered.
6. Take Legal Action
An additional way to put pressure on the developer and seek resolution is to take legal action. This can include filing FIRs against the developer and opening cases with the Enforcement Directorate and the Economic Offences Wing.
Also Read: 10 Things you should Consider Before Applying For Home Loan?
Final Thoughts
If you are facing a delay in your real estate project, it’s essential to know your options and take proactive steps to protect your financial interests. OneNDF is here to support you through these challenging times. For more information and assistance, visit OneNDF Contact Us.
