3 Scenarios Where You Can Claim Damages From Developers In Delhi

What could be seen as a relief for home buyers, a trial court in Delhi has ordered that now buyers can claim damages from real estate developers in Delhi if the latter fails to hand over the property on time, The Economic Times reported.

Acting as a booster for buyers' confidence, the order comes at a time when there has been a rise in number of incidences of delayed possession.

The court in its ruling said, "A builder who delays the handing over of the building to the buyer after completing the same within time or fails to carry out the construction according to the agreed specifications, entitles the buyer/ purchaser/ occupants to claim damages for any financial loss or physical inconvenience suffered by them on account of the same for which the builder can be made liable."

The court's orders came while judging a 35-year-old civil suit filed by Dalmiya Cement against Hansalya Properties and three of its partners.

Here are three possible scenarios where the home buyer can move the courts:

On-time delivery

In the builder-buyer agreement, the developers always include a grace period of a maximum of six months, but sometimes the possession is delayed even beyond the expected tenure. Usually, a buyer has already paid most of the property cost by the time the project is delivered. In case of delay, if he is living in a rented property in India, his financial calculations can go awry as he would not have factored in this additional rent. Earlier, buyers had to put up with the delays as most feared retribution, harassment and further delays in delivery. But now, buyers can sue the developer and ask for compensation after the court's ruling.

Stick to the promise

Buyers can also seek compensation or sue developers, if what was promised is not delivered. This includes the floor plan, interiors, and other specifications mentioned in the agreement. Often people face problems such as not getting the completion certificate at the time of handover as this is issued by municipal authorities after it establishes that the building complies with the approved plan. A developer would not get the certificate if he deviates from the plan.

Quality means quality

It is rare that home buyers check the building materials used or the quality of construction and some developers end up using sub-standard material as against "high-quality" material. Therefore, many home buyers face door locks failures, plaster getting peeled off from the walls, electrical issues, or even water seepage in walls. But now, the home buyers will be able claim compensation from the developers after this ruling.