If Your Flat Possession is Delayed by Builders

You may claim damages for alternative accommodation and interest on the payment made.

Buying a home is a big decision. Most invest their hard-earned money into buying a house. But what if we don't get possession on time? In such cases, the flat purchaser can file a consumer complaint for deficiency in service as defined under the Consumer Protection Act (CPA), 1986, against the builder. He is required to file a written complaint before the appropriate consumer redressal forum set up under the Act.

Consumer activist Jehangir Gai says, "Most builders never give the flat possession on time. Hence, if the builder delays it by even a day, the home-buyer should claim for his losses."

A delay in giving possession can be due to various reasons such as pending municipal approvals or some dispute. Or if property prices are rising, the developer may deliberately not give possession in the hope of making buyers pay more even if the agreement has been signed at older rates. This will not reflect in the sale agreement.

Delays can also happen if the developer is out of funds, or the bank is not ready to finance his project.

If your builder delays the possession, you can claim interest on the payment made till date.


Under the Ownership of Flats Act, 1963, the developer is liable to refund the amounts received, with nine per cent simple interest.

"The interest can range between nine and 18 per cent. Also, the interest is payable only on the amount that be proven as paid to the developer," adds Gai.


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