In earlier times, the industry of real estate was suffering from high recession which just resulted in the situation such as financial losses, reducing the prices of real estate and elimination of interested purchasers. While in this recession duration, many buyers even suffered a setback as their investment was stopped due to non-construction of projects. And when buyers wanted their money back, then the builders were just making some promises but never returned their money back to them.
The situation of home buyers
Thus, this phase brought home buyers with no alternative option rather than beginning the recovery amount which also generated delay in time for many other reasons such as builders were not confronting or taking any numbers of adjournments. And this got worse when the home buyers were caught in the technical issued which lead to dismissing of their filed case. And the worrying thing was that the builders have shown themselves bankrupt which created more issues to the home buyers. And in this condition, the home buyers saw the hope when the supreme court declared that the home buyers must be recognized as the financial creditors because the amount which they laid to builders were useful for the development of their construction. After such case, the home buyers are known as financial creditors and they can also proceed with their insolvency case under section 7 of bankrupt and insolvent case.
With such judgment, it gave tension-free relaxation to the home buyers but they were yet not in the state to recover the amount. The thing is that they need to request the loan services but were not in the state of this which just made the things worst. In many of the cases, the home buyers were fighting for their refund back instead of possession, but the builders always gave them dates after dates but did not refund them back due to the agreement between them that home buyers had now entered with builders.
This agreement clearly states that refund is not granted now and even they had to pay some penalty which just worsened the situation of home buyers due to the trapping plan in the loan for the home. Then finally the order was passed on 22nd April 2019 that now if the builder delays the occupancy certificate to the home buyers, then the whole paid amount needs to be refunded back to them as is decided by the court.
Then again on the recent case on 9th May 2019, the court decided that the home buyers will be refunded their money back at the interest rate of 10%. And in this case too, the whole payment was taken away and the property also will be given to them after 36 months but it has been more than 3 and half years after paying the amount 1, 77, 95,300 INR. Thus, the builders also come in the same excuses and violate the policies of the government.
Because of the current judgments, now the home buyers are safe from such corrupt builders and can claim their refund back. The different judgments passed through supreme courts, high courts and NCDRX, etc. assure the safety of home buyers from those builders who are corrupt and take away their money. Now they have received some hope as the court has granted them the interest on the refund money if they do delays like such.