4 Home Loan rules most of the investors don’t know about

Can you claim tax deduction for your under-constructed house? Can you claim tax for the home loan taken from your friend and not from Bank ? These are some of the questions which are not generally discussed over and lot of investors have no idea about actual rules. In the video below I will talk about four not so known rules of home loans . Keep reading ! . Readers on email can watch the video on this article.

Solution to “Delay in Possession of Flat”


Preventive Measures

1. Due Diligence:This is the first step that you should take even before you book the flat. You must conduct your own due diligence on the builder and the project. You should look at the track record of the builder and look at the average delivery time of his past projects. Then you should check whether the concerned project has received all approvals. See – documents to check before buying a flat.
When opting for a payment plan, always choose construction linked plan. In this way, you are creating an incentive for the builder to complete the project at the earliest. This will also ensure that you don’t block all your money upfront. You should always keep your options open.

2. Penalty Clause:Before handing over the booking amount cheque, you should ask for a copy of allotment letter and builder-buyer agreement. Check out the project delivery time and ensure that penalty clause is incorporated in the agreement. Generally, all reputed builders have a penalty clause in builder-buyer agreement stating Rs. 5-10 per square feet of penalty per month that the builder will pay from the promised project delivery date upto the actual handover date of the flat.

3. Form a Group

Once, you invest in a project, the next thing you would like to do is to get in touch with other buyers and investors of your project. A group has a much higher strength than an individual. In case of any delays,. These days, there are many online forums where you can meet your fellow buyers and investors.

Now Join Nitesh Caesars Palace Buyers Association(NCPBA)

4. Follow Up with Builder
Your job doesn’t get over with regular payments of your home installments. You should keep a track on construction activity. In case, you feel that the construction is getting delayed, you should meet with the builder as a group and understand the situation. A group can build more pressure and it is easier to fight for your cause as a group.

Legal Recourse

In case you feel that the builder is deliberately delaying the project, you may have to resort to take legal action. You can approach following forums for redressal:

1. Civil Court:If a builder commits breach of its obligations or is involved in unfair trade practices, you can approach a Civil Court for relief. For eg. some builders sell plots and flats even without owning the land, some use sub-standard construction material, some builders don’t apply for approvals deliberately causing delay in projects. Certain states have special provisions to handle delays by builders.  the builder is liable to refund the buyer’s money with interest if he is unable to justify delay in handing over possession of flats.

2. Consumer Forum:Consumer Protection Act, 1986, protects the rights of a consumer and provides remedies to a consumer against deficient services. A delay in handing over possession of flat is deficiency in rendering of promised service by the builder. You can file a case in the consumer dispute redressal commission at three levels – district, state and national level. District commission, established in each district, can handle cases where the value of the claim is less than Rs. 20 lakhs. The State commission of every state can handle cases where the value of claim is more than Rs. 20 lakhs but less than Rs. 1 Crore. The National commission has jurisdiction to handle claims of more than Rs. 1 Crore.

3. Competition Commission of India:The Competition Act, 2002 was enacted to prevent practices having adverse effect on competition, to prohibit use of dominance and to protect interests of consumers. A flat buyer can file a complaint against the unfair practices of the builder before the Competition Commission of India which has been empowered to investigate anti competitive practices and impose stringent penalties on the offenders. Penalties imposed by CCI against a builder act as deterrent to unfair trade practices in the real estate industry.

5. Criminal Court:Along with the consumer complaint in consumer forum, you can also file a criminal case against the builder under the provisions of Indian Penal Code, 1860 for breach of contract, cheating, not responding to grievance and delivery of poor quality construction. You can send a statutory notice to the builder. If the builder does not respond to the notice, file a police complaint and then file a criminal complaint before the Metropolitan Magistrate. You should mention all irregularities committed by the builder in your complaints.

Relief Options

It is better to take legal action as a group. If you file a case as a group, your legal costs will be shared and your case can be fast tracked.

Refunds can be claimed if the project is delayed beyond the stipulated time period as per the agreement. If the builder is in trouble and not in a position to deliver the project, the flat buyer can claim for the money required to purchase an alternative flat at the current market rate in the respective area.
If, however you are reasonably sure that the builder will hand over the possession of flat in a few months or years, you can claim the money you will be spending to pay rent during the delay period. Otherwise, you can claim interest on the payment made till date.


Today, builders are leaving no stones unturned in attracting the investors and end users into buying their properties. First, they will promise you moon and once they get all the money, they will stop responding to your queries. Most projects get delayed due to unfair practices by builders. There cannot be any justification against the delay caused by the builder once he has taken money and has promised to deliver the project in stipulated time.
As a consumer, we must know our rights and how to seek justice. First, you should take preventive measures to avoid delays in possession of flat. If however, preventive measures are not working out, you should not hesitate in taking legal action against the builder. After all, it is our hard earned money which is at stake.

Read more: http://assetyogi.com/flat-possession-delay/#ixzz404TgVYwI

How much a delay can cost you



Form a buyers’ association: An individual’s plea can fall on deaf ears but forming a group could make the builder stand up and take notice. Form a joint front to put forward your demands. A collective effort would yield result in larger projects. Leverage the power of social media. An association of buyers can be started with two members. However, to add legitimacy, it is necessary to register your association. Consult a lawyer to help with the legalities. If you are lucky, t ..

Why…Dealy …When…Possession

20160130_131104Remedies Available for Buyers to Deal with Delay in Possession

Here are some remedies available to homebuyers for dealing with delay in possession:

1. Ask for Refund- A homebuyer can ask for a refund from his builder when there are excessive delays in completion of a housing project. As the buyer, you have the entitlement to ask for a refund from your builder.

2.File Case in Consumer Dispute Redressal Commission -If a property is being purchased by you exclusively for your personal use, you can even file a case in one of the 3 levels of the Consumer Dispute Redressal Commission based on the value of the property purchased. If the dispute occurs for a property whose value is more than 1 crore, then the case has to be filed in the National Commission located in New Delhi. For properties whose values are over 20 lakhs, the dispute needs to be resolved in front of the State Commission while for disputes related to properties below 20 lakhs, the case has to be filed in the district commission.

3.Special Provisions in Select States in India- Some states in our country enjoy special provisions for the benefit of their consumers. Maharashtra, for instance, has a provision whereby a remedy is available to you through the Section 8 of Maharashtra Ownership Flat Act of 1963. The section specifies that if a builder is not able to give proper justifications for the delay in possession or non-completion of the project, he’ll have to refund the amount, with interest, to the buyer.

4.Additional Provision- The ‘Domestic Building Contracts Act’ of 1995 lays down that the builder has to provide the following warranties:

(a) The builder should complete all the work on time.

(b) All construction work should be carried out as per the specifications and plans that have been specified in the contract.

(c) The builder should use and supply high-quality materials.

(d) The builder would endeavor to do the work with reasonable skill and care as per the legal process.

(e) The home should be apt for occupation when the work gets completed as per the builder.

5.Serve Legal Notice- Before taking any type of action against the builder, it is recommended that you serve them a legal notice and give them an opportunity to respond. The builder might take corrective actions to get the problems resolved, thus saving your valuable time and costs that are usually associated with visiting the court.

Buyers set for legal action over delays at Emaar’s Indian project

Frustrated property buyers in an Emaar-MGF development in the Indian city of Gurgaon are stepping up their action against the developers with a case set to be lodged in the consumer court.

frustrated with the ongoing delays, a group of 90 buyers, have formed a group to collectively get solid information as to when the properties will be delivered and to try and get adequate compensation.

They will take their case to the consumer court, where Metha said they hope to have their claim dealt with efficiently.“They take up a case pretty fast by Indian standards. Within three months you will get the first hearing and within 45 days the respondent has top respond,” Read Ahead

More news: Why is no one thinking about us, ask homebuyers

NCP Buyers Association Formation Meeting 30 Jan

Click here : Join the Meeting event :JAN 30 2016, 10 AM

Buyers of many under construction projects in the region form group to fight against the builder.While the group of buyers can put pressure on builder through means of constant meetings, emails and protests, it is equally significant to give it a legal standing by virtue of which the group may fight the case as a registered entity.Also, this would enable core members of the group to get contribution from group members/buyers in a traceable manner with complete book keeping.
Hence, it becomes imperative for such a group to register the buyer’s association under Societies Registration Act of 1860 .

Below is the process to form registered association of buyers:

  • At least 7 buyers with local (where property is located) address proof.
  • At least 1 buyer with local (where property is located) permanent address proof.
  • Elect/choose the office bearers – President, Vice President, Treasurer, General Secretary, Secretary among these 7 odd buyers and share the same when applying.

Post formation of the buyer’s society/association, you may open a bank account and apply for PAN card.Update model bye-laws if required and share the same with the members.Invite other group members for joining society/association after defining the minimum joining fees that shall be in form of cheque in favor of society account.After this, contribution can be collected legally as and when necessitated.Ensure that responsibilities are well communicated to the office bearers and the members.

You may also fight the case against builder legally in consumer and other jurisdiction courts as a registered association.

Note: This buyers association is different from RWA (Resident welfare association). The RWA can only be formed by people residing in the project after possession once a minimum timeframe post possession (of minimum percentage of total flats) has crossed.

Join the association and share your details one time only

Click here on facebook logo to join NCP Buyers closed facebook groupfb