If you are stuck in such a situation, here is what to do.

Mr. Alok Sharma and his family took possession of their new flat in a single-tower apartment complex in the city of Shantinagar over a year ago. They had made a 50% advance payment in instalments, with the remaining 50% financed through a home loan. However, their relief of moving into a new home was short-lived.

For more than a year, the builder, Mr. Rakesh Verma of Verma Constructions, has failed to complete crucial amenities, including the building’s lift and the final painting work. He consistently provides excuses, pushing the completion date month after month, and has now claimed to have run out of funds to finish the project. This delay has also stalled the sale of other flats in the building, as prospective buyers are unwilling to invest until the lift is operational.

While some minor pending work, like the external staircase and flooring, was completed a few months back after significant delay, the non-functional lift remains the primary concern. Mr. Sharma’s flat is on the fourth floor, and his elderly parents, who suffer from various health ailments, find it extremely difficult to use the stairs daily. The situation has caused immense mental and financial distress to the family, who have invested their life savings into this property.

Advice in such cases

When a builder fails to deliver on promised amenities as per the agreement, it constitutes a breach of contract and a deficiency in service. Homebuyers have several legal avenues to seek redressal.

• Send a Legal Notice: The first formal step is to have a lawyer send a detailed legal notice to the builder. This notice should clearly state the pending work, the inconvenience caused, and a specific deadline for the builder to complete the obligations. It should also mention that failure to comply will result in legal action.
• File a Complaint with RERA: The Real Estate (Regulation and Development) Act, 2016 (RERA) is the primary authority for such disputes. You can file a complaint against the builder for violating the terms of the Builder-Buyer Agreement. RERA can direct the builder to complete the pending work and can also impose penalties.
• Approach the Consumer Court: A homebuyer is a ‘consumer’ and the builder is a ‘service provider’. Failure to provide promised amenities is a ‘deficiency in service’ under the Consumer Protection Act, 2019. You can file a case in the appropriate District, State, or National Consumer Disputes Redressal Commission depending on the value of your property and the compensation claimed.
• Form an Association: Unite with other homebuyers in the building facing the same issue. A collective complaint or action often carries more weight and can expedite the process. You can share the legal costs and present a stronger case.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The primary legal frameworks governing such disputes in India are:

• The Real Estate (Regulation and Development) Act, 2016 (RERA): Section 18 of RERA holds the promoter (builder) liable to the allottees if they fail to complete the project or give possession in accordance with the terms of the agreement for sale. It provides for compensation and directs the promoter to rectify structural defects or any other defects within a specified period.
• The Consumer Protection Act, 2019: This Act protects consumers from unfair trade practices and deficiency in services. A homebuyer can file a complaint seeking completion of the pending work, compensation for the delay and mental agony, and litigation costs.
• The Indian Contract Act, 1872: The Builder-Buyer Agreement is a legally binding contract. The builder’s failure to provide the lift and other amenities is a breach of this contract, for which you can sue for specific performance (demanding completion) and damages.

If you are the complainant

As the homebuyer (complainant), you must take structured steps to build a strong case.

• Gather all Documents: Collect every piece of paper related to the property purchase. This includes the Builder-Buyer Agreement, all payment receipts, the possession letter, and any brochures or advertisements that promised the amenities.
• Document all Communication: Keep a record of all emails, letters, and even text messages exchanged with the builder regarding the delay. If conversations were verbal, follow up with an email summarizing the discussion.
• Collect Evidence of Incompletion: Take clear, dated photographs and videos of the incomplete work, such as the non-functional lift shaft, unpainted walls, etc. This will serve as crucial visual evidence.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

As the aggrieved party, you have specific rights that are legally protected. It is important to know your rights to pursue the matter effectively.

• Right to Timely Possession and Amenities: You have a right to get possession of your flat along with all the promised amenities and common facilities as per the timeline mentioned in your agreement.
• Right to Compensation: If the builder delays the project or fails to provide promised facilities, you have the right to claim compensation for the financial loss and mental harassment caused. This can include the rent you might be paying or the inconvenience faced.
• Right to Information: You have the right to obtain all information about the project, including sanctioned plans, layout plans, and the project’s completion status.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

This is primarily a civil dispute, not a criminal one. Therefore, the police have a very limited role. If you approach a police station, they will likely advise you that this is a matter for the civil courts, RERA, or the Consumer Commission. Police intervention is only warranted if there is an element of criminal activity, such as cheating (Section 415 IPC, now covered under the Bharatiya Nyaya Sanhita, 2023), criminal breach of trust, or fraud, which must be proven with strong evidence of dishonest intent from the very beginning. In most cases of delay or non-completion, the police will not register an FIR and will direct you to the appropriate civil forum.

FAQs people normally have

Can I stop paying my EMIs?
No, you should not stop paying your home loan EMIs. Your loan agreement is with the bank, not the builder. Defaulting on your EMIs will negatively affect your credit score and could lead to legal action from the bank. Your dispute is with the builder, and it must be resolved separately.

Can the builder claim he has no money?
While a builder can claim financial difficulty, it is not a valid legal excuse to abandon a project or fail to provide promised amenities. The Builder-Buyer Agreement and RERA regulations bind him to complete the project. The funds you and other buyers have paid were meant for the construction, and he is accountable for their use.

Which is better: RERA or Consumer Court?
Both are effective forums. RERA is a specialized body for real estate disputes and is often faster. The Consumer Court has a broader scope but can sometimes take longer. An advocate can advise you on the best forum based on the specifics of your case, the value of the property, and the relief you are seeking.

What evidence is required?

To build a strong case against the builder, you will need the following evidence:

• The registered Builder-Buyer Agreement (Agreement for Sale).
• The sale deed, if executed.
• Payment receipts and bank statements proving all payments made to the builder.
• The possession letter.
• Project brochure or any written advertisement promising the amenities.
• Copies of all correspondence (emails, letters) with the builder.
• Dated photographs and videos of the incomplete building, especially the lift area and unpainted sections.
• Medical documents of family members, if you are claiming compensation for hardship caused due to their health conditions.

How long will the investigation take?

Since this is a civil matter, there is no “police investigation.” The process involves a legal proceeding in a court or tribunal. The duration depends on the forum you choose:

• RERA: The Act mandates that complaints should be disposed of as expeditiously as possible, preferably within sixty days from the date of filing. However, in practice, it can take anywhere from 6 to 12 months, depending on the complexity and the caseload of the authority.
• Consumer Court: The timeline can be longer in Consumer Courts. It may take anywhere from 1 to 2 years or even more for a final order, especially if the case goes into appeals.

The duration is also influenced by factors like the builder’s cooperation, the clarity of evidence, and the efficiency of the chosen legal forum.

Advocate Sudhir Rao, Supreme Court of India