• Delayed flat possession

I have booked a flat with umang real tech developers. In my agreement it was mentioned that i have to pay 50% of the cost at time of booking and rest 50% at the time of possession.

I was told by the builder that the flat will be ready by Dec 2016. 

In the contract agreement there is a clause for Price Escalation charges. 

In this clause it is mentioned that the 
"Escalation charges shall be computed at the expiry of 48(42+6) months from the date of start of construction. The WPI of the month of May 2013 and the expected date of handing over of possession i.e. May 2017 shall be taken as the opening and closing indices respectively to compute the Escalation charges"

In the contract agreement there is a clause for possession of apartment 

In this clause it is mentioned that the
"Developer shall endeavor to hand over the possession of the said apartment to buyer within a period of 42 months from the date of approval of buildings plan or the signing of agreement which ever is later(commitment period).
The buyer further agrees and understands that the developer shall additionally be entitled to a period of 180 days(grace period), after the expiry of the said commitment period"

My date of signing of agreement is 30th Aug 2014

Till date no progress has been made in the tower in which i have booked the flat. Not even basement work has started. in the other tower also very less work has been done and the construction activity has been stopped for last year and half. 

As a result i am now not interested to buy this flat.

 Ques 1. Can i approach state consumer form at this point for refund of my money that i have paid assuming that the flat was to be delivered in Dec 2016 and grace period expires in May 2017 and zero progress has take so far? 

Ques 2. Or i cannot move to consumer form till Aug 2018 i.e. 48 + 6 months from date of signing of agreement?

Ques 3. Are these clauses self contradictory? If yes then can i claim that my date of possession should be treated as Dec 2016 i.e. 42 months from May 2013.

Ques 4. If i can move to forum for refund can i also claim interest on the amount deposited?
Asked 7 years ago in Civil Law

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4 Answers

1) you can cancel booking and file complaint before consumer forum and seek refund with interest . There must be clause in your agreement regarding cancellation of booking before taking possession of flat

2) as per your agreement the builder can deliver possession by august 2018 as per clause relating to possession

3) the price escalation clause merely mentions that builder shall endeavour to deliver possession by may 2017

4) as per possession clause builder can deliver possession by august 2018

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

1) flat purchaser is at liberty to cancel the booking if he is unable to make payment on account of financial constraints . you can also cancel the booking if for period of 3 years there is no progress in construction . as stated by you even work on basement has not been completed till date

2) you can on cancellation seek refund of money paid by you

3) if builder fails to make payment you can file complaint before consumer forum and seek refund with interest

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

You first talk to the builder and ascertain the position and the estimated date for completion of construction.

If the builder's response is not convincing then you may decide to cancel the booking and seek refund of the advance paid amount.

If there is no response to your notice by the builder then you may drag him to consumer court seeking relief and compensation for the mental agony cause due to this.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

If the builder can give possession by Aug 2018 then on what basis I can cancel booking and claim refund and interest.

The builder cannot extend the date of handing over possession at his whims and fancies.

His inordinate delay may be quoted as reason for cancelling the booking

You can even claim interest on the amount you have already paid as advance.

T Kalaiselvan
Advocate, Vellore
85369 Answers
2231 Consultations

5.0 on 5.0

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