Delay in possession

priyadevsreemanglam (Querist) 22 May 2015 This query is : Resolved
I had booked a flat in Karjat in Jan 2012 and possession date was given July 2012. However, I have not received possession till date. Have paid 95% amount to the builder. The builder had delayed the project and built sub-standard buildings which has degraded over the time. He had encroached on land of Sarpanch and has settled the matter by offering money and flat to him and giving this reason for the delay.

I have filed Consumer Case at Alibag under Section 12 of Consumer Protection Act along with few other members (8 members). I would like to know the following:

1. What legal actions can we take against the builder other than consumer case ?
2. The project was approved by the town planning Raigarh District. Can we inform the authority of this encroachment ? Can they take action against the builder ?
3. SBI Bank has given approval for this project and few members have taken loans and booked the flat. Can they take any legal action ?
4. Few members who are investors are with the builder and trying to form society and seeking money for forming the society. I had objected to the formation of society and sent letters to society registration office. Can we take any other steps to stop forming of society by other members?

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Dr J C Vashista (Expert) 23 May 2015
1. a) You can move to civil court for specific performance, possession, damages, mesne profits and consequential benefits.
b) You can move to local police with a complaint/FIR against the builder for committing cheating, fraud and criminal breach of trust.
c) You can file a case with Economic offence wing of the district police for committing cheating and fraud upon so many (specify with evidence) prospective buyers of flats.
2. Of course you should intimate DTP Raigarh for encroachment for necessary action.
3. SBI Bank is interested in earning interest on the loan advanced to individual borrower, however, the bank might have collected collateral security from each borrower. The Bank shall initiate legal action when they find that their installment is being defaulted vis-à-vis loan is getting NPA.
4. Apply to District Registrar of Firms & Societies to restrain from registration of any such society, it has to be followed by filing a suit for permanent and mandatory injunction.
5. Seek professional services of a local prudent lawyer for proper advise, guidance and proceeding.