Interest charged on delay in construction
Hi,
I had booked a property in Mumbai with Sunteck Builders and accordingly paid the booking amount on Nov 2013. During the time of booking and as per the schedule of payment. Construction was expected to be completed by Dec 2017 latest. Post payment of booking, I also paid the towards allotment by Jan 2014.
There was another demand letter on February 2016 towards commencement of excavation, which was also paid. Along with this demand there was an interest charged by the builder saying there was delay in paying the money towards allotment. The revised date of completion of project is now Dec 2019
The builder has started charging interest even for 1 day of delay. I have not yet entered into a formal agreement with the builder so far. Does the builder have the right to charge interest when the property is delayed by almost than 2 years ? Can I claim interest from the builder towards delay in constructing the property, similar to the way he is charging interest on delayed payment. Secondly, I had asked the builder to share the copy of the agreement, which he has declined saying I can read the agreement in his office, if I want. If I need to sign the agreement, shouldn't I get a copy of the agreement.
I believe charging interest is unfair since the construction has got delayed for two years and the builder should be paying money against the delay.
Do I have a case which can be fought in the court ? Please advice
Asked 8 years ago in Property Law
Religion: Hindu
Hi All,
Thanks for the response.
The builder has declined to send the soft copy of the review, instead asked me to come to his office along with my legal representative (if I have one) to review the document and sign it then and there. They will not provide the copy to carry home and review it. I stay in Bangalore and the property and builder's office is in Mumbai.
2. As regards to the interest, they said since the agreement is not signed yet, they have not agreement to pay interest.
This is despite the builder delaying the signining of agreement. Initial booking amount was paid in Nov 2013 and the builder initiated the signinig of the agreement only in October 2016
I need help in filing a case with the consumer court and also the process.
Regards
Nagraj
Asked 8 years ago