Liability in Delay of Projects

Can Promoters be excused from delay in possession for factors beyond their control?

Generally, the possession of flat, office… to the Buyer can’t be delayed. But there have been various instances where despite the Promoter’s best efforts, there is a delay in the possession - this is termed as ‘factors beyond the control of Promoter’.

There can be various such factors - unavailability of raw materials, delay in sanctioning of plans by various authorities, change in planning authority, delayed/no payment by the buyer etc. Delay in sanctioning of plan with default from Promoter, etc where Promoters’ defaults reflect will not be permitted under such factors.

No demand notice to the Promoter for compensation by the Buyer, in case the Buyer intends to continue in the project for monthly compensations, is necessary and filing a complaint is construed to be a demand.

So what can Promoter do? Contemplate the timeline for completion of the Project and accordingly inform the Buyers and mention the date accordingly on the agreement.

Looking for more such advice? Or, seeking RERA consultation for your project, want to register your project or comply with RERA by quarterly updating your project? Contact us today!

The information relayed in this blog should not be construed as legal advice. The applicability of information varies on the basis of the circumstances of each case. But feel free to call us for similar advice.