What happens if a builder fails to deliver a project as per the agreement?

If a builder fails to deliver a real estate project as per the agreement with the home buyers, it can lead to significant concerns and grievances for the buyers. The Real Estate (Regulation and Development) Act (RERA) provides certain provisions and mechanisms to address such situations and protect the interests of home buyers. Here are the possible consequences for the builder:

1. Compensation and Refund: RERA empowers home buyers to seek compensation and refund in case of project delays or noncompliance by the builder. If the builder fails to deliver the project within the agreedupon timeframe, the buyer has the right to claim compensation for the delay, which could include interest on the amount paid and additional damages. Alternatively, the buyer may also seek a refund of the amount paid along with interest.

2. Penalty Imposition: RERA allows the regulatory authority to impose penalties on builders for noncompliance with the provisions of the Act. These penalties may vary depending on the seriousness of the offense and can include fines, imprisonment, or both. The penalties serve as a deterrent to prevent builders from defaulting on their obligations.

3. Project Takeover: In cases where the builder is unable to complete the project or fulfill their obligations, RERA grants the authority to take appropriate measures to protect the interests of the home buyers. This can include the appointment of a new developer or agency to complete the project and ensure its delivery to the buyers.

4. Dispute Resolution: RERA establishes a dispute resolution mechanism to address grievances between home buyers and builders. It sets up the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal at the state level to adjudicate disputes and provide a fair and timely resolution. Home buyers can approach these forums to file complaints and seek redressal.

5. Legal Recourse: Home buyers also have the option to take legal action against the builder in a court of law if the builder fails to fulfill their obligations. They can file a lawsuit seeking compensation, refund, or any other appropriate relief as per the terms of the agreement and the applicable laws.

It is advisable for home buyers to thoroughly understand the provisions of the agreement, keep copies of all relevant documents, and maintain records of payment and correspondence with the builder. In case of any noncompliance or project delays, buyers should document the issues, communicate with the builder in writing, and if necessary, approach the respective state's RERA authority for resolution.

It is important to note that the specific actions and consequences may vary depending on the state and the provisions of the RERA rules and regulations applicable in that particular jurisdiction. It is recommended to seek legal advice or consult with professionals familiar with the RERA Act for specific guidance and assistance in such situations.