NON PAYMENT OF INTEREST
Buying a home takes your entire life saving and planning, people take an immense burden on themselves for buying a place that they can call home. Real estate from being one of the most promising industries have become to one disputed industry. Delayed possession, huge debts, builders in jail and the list of disputes go on.
Builders make high promises and these high promises lead to continuous defaults on their part. Real Estate Regulation Authority (RERA) further provides the remedy of getting interested during the pendency of possession.
Buyers are further confused with two simultaneous remedies i.e., approaching RERA or National Company Law Tribunal. Both have promising remedies and have successfully mitigated the problems of buyers.
The question arrived on how to effectively get your interest during a delayed possession? What is the interest amount?
The answer to the same is RERA. A buyer should approach RERA when:
(i) the quantum of interest is not predefined
(ii) A dispute is there with regard to such payment.
NCLT on the other hand is the right choice when:
(i) the the quantum of interest is predefined and no dispute is there with regard to such payment
(ii) Despite RERA orders, payment is not made to the buyer.
Also manytimes, builders themselves move to NCLT and file insolvency in such a case RERA is ruled-out and a buyer has to approach NCLT for recovery of the dues.