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Prabhakar Ranjan (Tech Lead)     15 September 2010

What action can b taken when delay in possession from buider

Hi, I have bought a flat in group housing project in 2007. The possesion was committed to be given in 2009. Now after 3 and half years I am still waiting for possession. I am paying EMIs to the bank continuously.

Now there seems no chance of getting possession till 2012. So, I want to opt for full refund.

Is there any possibility to stop EMIs legally after consulting the bank?



 7 Replies

Prakash Yedhula (Lawyer)     15 September 2010

Your remedy is only against the builder and not against the banker. You can only sue your builder for damages.

1 Like

Prabhakar Ranjan (Tech Lead)     15 September 2010

Dear Mr. Prakash,

Thanks for the reply.

Can I surrender the property to bank? Is there any way to do this? What will be the loses in case of surrender if any?

Please guide me.


Saket Gandhi (advocate)     16 September 2010

I dont know on  wht basis bank would have given loan to you. Is it a personal loan or what. However, you may on basis of the agreement between you and the builder issue a notice for complition of project through a legal adviser and then you may file a case with the consumer forum.. i hope there will also such other persons in the same scheme. you may contact them and fill together or else you may do the same by your own. Conditions in the agreement may also be referred regarding the dispute or the complition clause.

Parveen Bansal (Service)     16 September 2010

Your remedy lies against the builder for delay in poessession. Discuss with banker to settle their loan and understand the costs for fore closure. File claim against the builder for the following:

1. Refund of money.

2 Compensation for consequential losses, which could be rent payment for delay, interest on amount paid, fore closure charges, mental agony etc.


Good luck


Parveen Bansal

0997 159 3217

Bharatkumar (ADVOCATE )     16 September 2010

the builder make  a  agreemrnt for sale or Bookign Agreement with u?  If,  Yes, please read the condition metion in agreement. Otherwise the builder pay compensation at the rate of Rs. ---- per Square foot / Square Yard of the super built up area till tbe time of possession. or U go to consumer court for that.  


Please look at the agreement made carefully. There will not be even a single clause against the builder / developer. Though the buyer also pays the advocate for writing the document, the builder pays much more, for the entire building to the advocate, to write all the clauses favouring them. If the buyer want to change any clause, builder will not agree and may refuse to sell the flat, as he may get another buyer. Whereas, buyer may not get a property, with all the options and choices, once a flat / property is finalized as per one's choice, again.

Boston Foreclosure

Prabhakar Ranjan (Tech Lead)     18 June 2011

OK. I feel I should ask for a full refund on the basis of a clause written in agreement. According to that, I can ask for a full refund if builder failed to give possession with in committed time.

Please can anyone suggest how to go with. I have taken loan from bank. Builder may return the money which was given by bank on my account but he will delay paying my money which I had paid in cash.

Considering such scenarios, what will be the best and shortest route of action I should take. Please suggest.



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