Non-delivery of property is a common concern for Non-Resident Indians (NRIs) investing in real estate in India. Delays in possession or failure by builders to deliver properties can cause financial and emotional stress for buyers. NRIs face unique challenges due to being overseas, including jurisdictional issues and procedural complexities. This article provides a clear, detailed overview of the remedies available to NRIs under Indian law, highlighting the relevant statutes, processes, and practical steps.

Understanding the Legal Framework


The Indian legal system provides several avenues for property buyers, including NRIs, to seek redress when developers fail to deliver promised properties. Key laws include:

  • The Real Estate (Regulation and Development) Act, 2016 (RERA):
    RERA was introduced to protect homebuyers and increase transparency in real estate transactions. It mandates registration of real estate projects, timely delivery of projects, and compensation in case of delays.

  • The Indian Contract Act, 1872:
    The Act governs how parties form agreements. Courts treat a builder-buyer agreement as a contract, and buyers can claim remedies like compensation or rescission if the builder fails to fulfill their obligations.

  • Consumer Protection Act, 2019:
    Delays or non-delivery of property can be considered a deficiency in service. NRIs can file complaints with Consumer Courts or Commissions seeking refund, compensation, or specific performance.

Common Issues Faced by NRIs


NRIs often encounter the following challenges:

  1. Delayed Possession: Builders may fail to deliver within the stipulated timeline mentioned in the agreement.

  2. Project Cancellation: Projects may be abandoned due to financial difficulties or regulatory issues.

  3. Legal Complexity: Being overseas makes it harder for NRIs to monitor progress, file complaints, or appear in court.

  4. Documentation Challenges: Obtaining notarized, apostilled, or power-of-attorney documents to act from abroad may be required.

Remedies Available Under RERA


RERA provides a clear, structured mechanism for homebuyers, including NRIs, to seek remedies:

  1. Filing a Complaint: NRIs can file complaints against builders for non-delivery of property. Complaints can be submitted online or through a duly authorized representative in India.

  2. Compensation for Delay: Section 18 of RERA allows homebuyers to claim interest on delayed possession, calculated at a rate prescribed by the regulator.

  3. Specific Performance: Buyers can request the RERA authority to direct the builder to deliver the property as per the agreement.

  4. Refund in Case of Project Cancellation: If a builder fails to complete the project, RERA mandates refund of the invested amount with interest.

  5. Monitoring Compliance: The RERA authority ensures builders submit periodic progress reports and adhere to project timelines.

Remedies Through Civil Courts


Civil remedies are available under the Indian Contract Act and general civil law principles:

  1. Filing a Suit for Specific Performance: NRIs can file a civil suit seeking enforcement of the agreement to deliver the property.

  2. Claiming Damages: If specific performance is not possible, NRIs may claim monetary compensation for losses caused due to non-delivery.

  3. Declaratory Relief: NRIs may seek a court declaration confirming the builder’s breach of contractual obligations.

Remedies Under Consumer Protection Act


The Consumer Protection Act treats homebuyers as consumers and builders as service providers:

  1. Filing a Consumer Complaint: NRIs can file a complaint with the Consumer Disputes Redressal Commission (District, State, or National level depending on claim value).

  2. Refund and Compensation: The Commission can order refund of the invested amount along with interest or award compensation for mental agony or financial loss.

  3. Appeals: Decisions of the District or State Commissions can be appealed before higher authorities.

Practical Steps for NRIs to Secure Remedies


NRIs should follow practical steps to safeguard their rights:

  1. Power of Attorney (PoA): Appoint a trusted representative in India with PoA to handle legal proceedings, documentation, and court appearances.

  2. Maintain Records: Keep copies of agreements, payment receipts, RERA registration details, and correspondence with the builder.

  3. Verify Builder Credentials: Before investing, check RERA registration, approvals from local authorities, and project status.

  4. File Complaints Promptly: Delays in filing complaints may affect legal remedies. Adhere to prescribed limitation periods.

  5. Engage Professional Guidance: NRIs may consult legal experts for procedural guidance without soliciting direct representation services.

Alternative Dispute Resolution Mechanisms


Besides courts and RERA, alternative dispute resolution (ADR) mechanisms can be used:

  1. Arbitration: Many agreements contain arbitration clauses. NRIs can seek arbitration from India-based panels.

  2. Mediation: Builders and buyers may opt for mediation through RERA authorities or independent mediators to reach a settlement.

FAQ Section

Q1: Can NRIs file a RERA complaint from abroad?


Yes, NRIs can file RERA complaints online or through an authorized PoA holder in India. Documentation must be notarized and submitted in accordance with RERA guidelines.

Q2: How long does RERA take to resolve complaints?


RERA authorities generally aim to resolve complaints within 60–90 days. Complex cases may take longer depending on evidence and hearings.

Q3: What if a builder cancels a project?


RERA regulations entitle NRIs to a full refund of the amount they paid, along with interest. NRIs can also pursue civil remedies if they incur additional financial losses.

Q4: Can NRIs file a complaint under the Consumer Protection Act?


Yes, NRIs can file complaints through their representative in India. Compensation for deficiency of service, delay, or loss can be claimed.

Q5: Is specific performance always granted?


Courts may grant specific performance if it is feasible and just. If delivery of property is impossible, monetary compensation is provided instead.


Non-delivery of property is a significant concern for NRIs investing in India, but multiple legal remedies exist to address the issue. RERA provides a streamlined process for complaints, while civil courts and consumer forums offer complementary avenues. NRIs should maintain proper documentation, appoint trusted representatives, and follow legal procedures diligently. Understanding these remedies ensures NRIs can protect their investments and seek appropriate compensation when developers fail to deliver.