Complaint Against Builders…How to get refund of invested amount
These days people are stuck in under construction properties offered by the builder.
You had invested in the project offered by the builder assuming the value will get appreciated or you would be getting timely possession of the property. But neither things happened.
The only option now is go to court but which court?
There are 3 courts as of now to help you out with this issue
A. Consumer Forum
You can approach all three as per the Hon’ble Supreme Court judgement
But here is Deep Analysis
- Consumer Forum
Here I would discuss the approach to NCDRC here either you can approach as a single consumer having a claim of 1 Cr+ now act is amended but not notified the value of claim will go to 10 Cr once the act is notified.
You can file 12(1)(C) petition irrespective of claim value. It is a complaint by a group of people.
Time period is 2 to 3 years but relief is 99% guaranteed in approaching this forum. Procedure is simple and as of now even refund +14% interest is given.
Execution of order is fast as builder appeal to Supreme Court are mostly rejected.
CASE STUDY BPTP TERRA PROJECT GURGAON
This client has filed the case in the Year 2017 and had invested an amount of 1 Cr+ So his case was eligible directly to be filed at NCDRC. The case was strongly represented by the consumer and therefore at the final stages of the case the Opposite part offered to refund the money with interest.
The final settlement was Refund of money with interest @ 10% PA and the settlement was duly recorded by the Court, so that if there is a breach the consumer can again approach court by preferring execution petition.
CASE STUDY RAMAPRASTHA BUILDER
The case was filed for refund of hard earned money of 8 buyers and the consumer forum passed an order of refund of the money with an interest of 14% Pa. See order
The case was filed for refund of hard earned money of 8 buyers and the consumer forum passed an order of refund of the money with an interest of 14% Pa.
The builder failed to offer refund therefore we had to go for execution of the order and filed execution proceedings in NCDRC. The OP. committed to refund the amount with interest see order below..
Now he is has not complied with the order court has ordered to make his director appear personally in court and he cannot leave the country.
The Approach to NCLT is like a Atom Bomb of legal procedure. Here the NCLT can declare moratorium if you succeed and builder will lose it company.
NCLT is effective only if your reach Settlement before Moratorium. Most cases are settled out of court.
But approaching NCLT is expensive but really fast.
But NCLT will be forum of future as NCDRC claim value to go up to Rs. 10 Crore.
As of now RERA is not that effective as it was speculated with many forums of appeal and many Authorities have no tribunal functioning the procedure is slow and execution is unpredictable.
My Recent case of Emaar MGF got settled in RERA
What is the Interest Rate Ordered the Courts?
If the matter is settled before final Judgement the 8-10% is the nominal interest paid by the builder to the buyer as interest rate.
In NCDRC 12-14% is ordered by the court in case the matter is finally decided incase of delay.
In NCLT since settlement is the best option for buyer the interest rate ranges from 8-10%
In rera 10% interest rate is normally ordered.
How much time will it take to get the money back?
NCDRC-In NCDRC average time ranges between 1.5-2.5 Years. As NCDRC is the last forum overall time will be less.
NCLT-The time ranges between 6-1 Year if case is settled.
RERA it takes 6-8 Month to Rera to decide the matter remember rera also has appellate tribunal.
RERA or NCDRC are the best forum as of now people have got back their money with interest by these forums.
By: Advocate Nitish Banka