Practice area

Builder Disputes

Buying a flat, house or any other property with your hard-earned savings and not getting it on time can be pretty frustrating.

When the developer or builder stops taking your call and keeps on delaying the possession, you not only stand the lose your advance and EMI payments, but also your mental peace.

Some of the major concerns of the aggrieved homebuyers are:

  • Delay in delivery of the unit;
  • Demand of extra charges by builder during handover;
  • Major unauthorised changes in the layout/ building plan;
  • Non-execution of sale agreement despite receiving advance;
  • Non-issuance of relevant documents like payment receipt;
  • Demand of excessive charge than what was agreed;
  • Usage of poor quality materials for construction;
  • No provision of free parking space within premises;

The 3 most effective legal remedies available are as follows, where Magnus Legal works with homebuyers for efficient resolution:

Real Estate Regulatory Authority (RERA):

RERA is a dedicated forum for the resolution of disputes arising in the real estate sector. With its appellate body, the RERA Appellate Tribunal, it has jurisdiction in all real estate matters. It allows the buyers to get the total refund of payment with interest or monthly interest till handing over of possession by the builder.

We, at Magnus Legal Services LLP, file the complaint and Legal Notice against the builder for delay in possession under the RERA Act, 2016 or request for transfer of their case from a Consumer Disputes Redressal Commission to the State Real Estate Regulatory Authority. According to this Act, a builder will have to pay 10% interest on the value of the property for delayed possession of flats along with compensation and refund in case of non-delivery.

Consumer Forum:

Passed and amended as recently as in 2019, the Consumer Protection Act enables the buyers to file a complaint for ‘deficiency in service’ against the builder and get a refund with interest or delayed possession with compensation for mental harassment, litigation costs, etc.

We, at Magnus Legal Services LLP, file and successfully represent such clients before the Commission on a regular basis.

National Company Law Tribunal (NCLT):

In case the builder is unable to finish the real estate project, insolvency proceedings can be initiated by the buyers under the Insolvency and Bankruptcy Code (IBC) and have a chance at realising their paid amount. A group of 100 allottees in a particular real estate project or 10% of the total allottees need to be formed who can file an application under section 7 of the IBC and request for the initiation of Corporate Insolvency Resolution Process against the builder.

We have successfully represented the buyers in their claims before the NCLT.


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