A promoter/developer who is promoting, advertising and marketing a real estate project, has a lot of responsibilities and obligations to fulfill. These are not only towards the given project but also towards the buyer. While there are various grounds on which a homebuyer can sue the developer, there are certain grounds on which a developer can also file a case against the homebuyer.
Real Estate (Regulation and Development) Act (RERA) regulations have been implemented with the vision to enhance transparency and accountability in the real estate sector. Under the Act, the developers have been entrusted with multiple requirements and compliance, which are to be fulfilled at different stages of construction. While a developer can be booked for any delay in complying with the RERA rules, a homebuyer, too, can be sued on multiple grounds. For instance, a developer can sue a homebuyer on the grounds of unlawful protests and can initiate legal action under Section 141 of the Indian Penal Code (IPC).
Here are some other grounds on which a developer can sue the homebuyer:
A homebuyer is entitled to pay all the installments, as mentioned in the agreement, before the actual possession of the property. In the event of a delay, the buyer needs to pay the interest along with the principal amount, as mutually agreed between the parties. Under RERA, a developer can file a complaint against an allottee if he/she disagrees to pay the balance payment, along with the contractual interest or refuses to take over the possession of flat. The requirements with respect to the same have been provided under Section 13 of the RERA Act, which mandates execution of the agreement between a builder and the buyer. In the event of any failure on the part of the homebuyer, the developer is entitled to approach the RERA Authority for appropriate relief.
Under Section 19 (10) of RERA, a homebuyer is obligated to take the physical possession of the property within two months of the receipt of the occupancy certificate. In case the buyer falters on this, even after repetitively informed by the developer; suitable legal action may be initiated by the developer against the homebuyer.
Similar to the legal remedies under applicable laws, a developer may also approach the civil court or a criminal court for appropriate relief. A developer may also approach the real estate regulatory authority under the concerned State in order to sue a homebuyer if he fails to comply with the obligations, as mentioned in the agreement for sale.
Incidents; wherein, the developers have been able to sue homebuyers successfully
A developer filing a suit is quite a rare occurrence. One such instance was reported before the RERA Authority in Haryana. The company filed a case against the allottee, and the latter was directed to take over the possession of the unit and pay the remaining balance, along with the prescribed rate of interest. The developer, who was the complainant in this case, was held liable to pay late delivery charges, if any, at the prescribed rate.
Though it is uncommon to find incidences wherein the developer has sued the homebuyer; the same has happened many a time over the years. The relief, in such cases, is largely dependent on the track record of the developer and the evidence provided by him.
Originally Published by 99acres
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