The sheer quantity of housing units that are stopped or delayed in India is a compelling narrative.
According to data issued last year by ANAROCK Property Consultants, the Indian residential industry continues to be plagued with heavily delayed – and even worse, fully halted – home projects (started in 2014 or before).
Projects that are stalled have no construction activity, while those that are delayed have negligible progress.
The total worth of the 174,000 homes stuck in the top seven cities is currently more than Rs 1,40,613 crore. More than 65 percent of these apartments are priced under Rs 80 lakh. The National Capital Region has the most stopped units (113,860), followed by the Mumbai Metropolitan Region (41,720).
The sheer quantity of housing units that are stopped or delayed in India is a compelling narrative.
According to data issued last year by ANAROCK Property Consultants, the Indian residential industry continues to be plagued with heavily delayed – and even worse, fully halted – home projects (started in 2014 or before).
Projects that are stalled have no construction activity, while those that are delayed have negligible progress.
The total worth of the 174,000 homes stuck in the top seven cities is currently more than Rs 1,40,613 crore. More than 65 percent of these apartments are priced under Rs 80 lakh. The National Capital Region has the most stopped units (113,860), followed by the Mumbai Metropolitan Region (41,720).
Make a formal complaint to the real estate regulation.
For delayed developments, the first option is to register a consumer complaint with the Real Estate (Regulation and Development) Authority (RERA).
“It will either help them get a refund or put pressure on the builder to finish the project sooner.” According to Sonam Chandwani, managing partner at KS Legal & Associates, “it is pretty usual for builders to postpone projects for different reasons such as financial strain, labor issues, and so on, all of which result in hardships for homeowners as they all pay EMI on the loan.”
Homebuyers are also entitled to compensation in the event of a delay. They are entitled to interest at a rate stipulated by RERA for each month of delay until possession.
The Real Estate Appellate Tribunal (REAT) was established to hear challenges against the RERA’s decisions. The REAT has the power to review the constitutionality of RERA orders and decide whether to uphold or overturn them. REIT’s decisions can be challenged in the supreme court.
Taking the legal route
Homebuyers can choose a preferred hearing body or court if they choose to go the legal way.
Although Section 79 of RERA prohibits civil courts from exercising jurisdiction, the Supreme Court of India clarified that the National Consumer Disputes Redressal Commission, a quasi-judicial body established in 1988 under the Consumer Protection Act, 1986, is a valid forum for aggrieved homebuyers to file a case against builders.
There are city-level forums in India’s major cities. In India, however, each state has its forum. These forums serve as consumer courts, where a homebuyer can file a complaint against the developer and get a refund if the house or flat is not delivered within a year.
