Builder Delays and RERA Complaints
Are there limits on the amount we can claim (like interest rates) under RERA for delay?
Written By: GatePal Analyst
Last Updated on
Short Answer
Yes, there are limits on the amount that can be claimed under RERA for delays, including interest rates.
Detailed Explanation
Rule 18 of the Gujarat Real Estate (Regulation and Development) Rules, 2017 states that in case of delay in handing over possession of the property to the allottee, the promoter shall be liable to pay interest to the allottee at the prescribed rate. This means that if a builder delays the possession of a property, they are required to pay interest to the buyer at the rate specified by RERA.
Furthermore, Section 18 of the Gujarat Real Estate (Regulation and Development) Act, 2016 provides for the compensation payable by the promoter to the allottee for any loss caused due to defective title of the land, as well as for any other structural defects. This compensation is in addition to the interest payable for delays in possession.
In practice, if a builder fails to deliver the property within the agreed-upon timeframe, the buyer can file a complaint with the Gujarat RERA authority. The authority will then assess the situation, determine the amount of compensation and interest payable, and direct the builder to make the necessary payments to the buyer.
Real-world Scenarios
Mr. Patel booked a flat in a housing project and was promised possession within 3 years. However, the builder delayed the project by 2 years. As per RERA, Mr. Patel is entitled to claim interest on the amount paid for the flat at the prescribed rate for the delayed period.
Ms. Shah purchased a commercial space from a developer who failed to complete the construction on time. Under RERA, Ms. Shah can claim compensation for the loss suffered due to the delay in possession, in addition to the interest on the amount paid.
Mr. Desai invested in a plot of land for which the builder failed to provide clear title. RERA allows Mr. Desai to claim compensation for the defective title of the land, along with any interest payable for the delay in possession.
References
Rule 18 of the Gujarat Real Estate (Regulation and Development) Rules, 2017: Official PDF
Section 18 of the Gujarat Real Estate (Regulation and Development) Act, 2016: Official PDF
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