• Delay in flat possession

I have booked a flat in Bangalore from a reputed builder in Apr'14.
The possession date in sale deed is mentioned as Apr'16 with 6 months of grace period.
I have taken loan from a bank and got the bank disbursed the amount whenever builder sends me the demand notices without any delay. 
However, As I was concerned about the CC (Commencement Certificate) without which applying for OC (occupancy certificate)might be very difficult , I repeatedly asked the builder if they have applied and get CC for this project. When the builder didn't give any response I hold the disbursal amount for 3 months and continuously asked for any kind of proof that they applied for CC. But even after that the builder didn't shown any CC to me.With no where to go I finally released the payment.
Now, the project is delayed by an year and seeing the slow progress and talking to engineers on the site it is very much evident that it will take minimum 1 year to complete the project.
When I am asking the builder to pay me the compensation amount mentioned in the sale deed (which is very less ie. 5K/month) they are not agreeing to pay anything citing the delay which I made during CC issue. At this point of time already 90% of the amount is disbursed. I have come to know that for new buyers the builder is giving Oct'17 + 6 months grace period as possession date.
There are 50 such flat owners whom I know from the same project which are in similar situation.
Is there any way we can compel the builder to pay home loan interest or the rent we are paying or atleast the 5k mentioned in the sale deed. 
Can the builder delay the project forever citing the reason of delay in payment.

Thank You.
Asked 7 years ago in Property Law
Religion: Hindu

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6 Answers

1) file complaint against builder before consumer forum

2) seek rent amount paid by you for delay in completion of the project

3) also seek litigation costs and compensation for mental torture undergone by you

4) also seek orders to direct builder to complete project within stipulated period

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

1. The builder is bound by the terms of the agreement made between him and the purchasers.

2.So when there is a compensation clause builder can not escape from this.

3.in such a situation to force him pay the necessary compensation you can file a case in the consumer forum and once such case is filed you will get all the reliefs including damages and interest.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

The decision by builder to not to pay the penalty for the delay in completion of construction is unilateral and contrary to the agreed conditions.

You may issue a legal demand notice to the build seeking compensation as per the conditions of the sale agreement invoking the particular clause in the registered sale agreement.

If the builder do not respond or not cooperating then you may drag him to consumer forum too seeking the said relief and also for remedy against his future plans/acts to avenge you for this litigation, in some other manner.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

Hi, there is clear case of deficiency of service on the part of the builder you have to claim compensation + EMI and Rent from the builder filing a consumer complaint in the District Consumer Forum.

Pradeep Bharathipura
Advocate, Bangalore
5607 Answers
336 Consultations

4.5 on 5.0

1) if you have delayed payment builder would be entitled to seek interest for delay in making payment

2) contact a local lawyer and issue legal notice to builder seeking refund of money paid by you with interest

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

You can send a legal notice to the builder demanding the compensation for the delay in handing over possession of the completed flat invoking the clause by which you are entitled for this relief which would be found in the sale agreement.

If the builder is not responding to this lawyer's notice then you may drag him to consumer forum for further legal action against him and relief.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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