I have booked flat and sanctioned loan from HDFC Bank. Tri party agreement was signed for the same. During the period of construction developer raise demand for payment of installment but bank has suspended disbursement under project owing to non compliance of some condition by developer. Subsequently suspension was lifted and disbursement was made by bank and accordingly deposited with developer. Now on possession of flat developer has raised demand for interest payment for the installment which was delayed due to suspension of disbursement by bank. Can developer claim interest for that period.
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1) developer cannot claim interest for delay in payment of installment
2) delay arose as builder failed to comply with conditions laid down by Bank
3) you can in reply to builder demand for interest mention that delay arose on account of his failure to comply with conditions of disbursement
4) if builder insists pay under protest .
5) take possession of flat and then move consumer forum against builder and seek refund with interest
Ignore the demand of developer and file a case in Consumer Forum for deficiency of service.
1. The delay in making payment by the Bank for and on your behalf was due non compliance of certain contitions by the Developer as detected by the lending Bank,
2. Collect all the letters/documents exchanged by and between the Bank and the developer in this regard,
3. These will stand as very good evidence to prove against the Developer that delay in making payment by the Bank was on account of his fault,
4. If the interest is of not substantial amount, it will be prudent on your part to pay the same under protest, take possession of the flat, get the same registered in your name and then file a complaint case before the local District Consumet Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of the said amount paid, intrest, damage and cost.
1. The delay in your case is attributable to the suspension of disbursement by the bank owing to the default in compliance with some condition by the developer. When the fault lies squarely with the developer her cannot hold you liable in any manner.
2. Has the developer issued you a lawyer's notice, or has simply made an oral demand for payment of interest? Do not pay the interest. You have the right to move the consumer forum against the developer for deficiency in service. The court can order him to deliver the possession and also compensate you for the hardship suffered by you.
3. You can also pay under protest and then move the consumer forum against the developer.
Its advisable to send a protest note and make the payment to get the procession of the Flat. if you raise dispute with him now he will not deliver the flat and it will result in huge monitory loss to you.
Once you are in possession of the flat you can approach the Consumer forum for seeking relief.
Hi, developer cannot claim interest as the default was not due to your fault and there was condition breach by the developer so you are not liable to pay interest, if they demand for interest you to aaproach consumer court.
A. Generally, the Developer cannot claim any interest towards the late payments.
B. However, In the presence of the terms and conditions in the agreement in respect of late payment, the developer can claim interest for delay payment because of the builder has constructed the building step by step with the assistance of the part payment.
C. But, in the event of any non compliance of the conditions which against the bye laws of a local authority or not followed the approved plan, in these circumstances the builder has violated the rules and regulation, hence the late payment should be allowed without interest.
In present case will depositing instalment at possession i raise the issue for compensation for delay in possession as per clause in builder buyer agreement. although i have paid full amount for possession in order to avoid penalty from developer. Now received call from developer accounts section that in case i go for compensation for delay in possession he will rasie demand for delay in payment of instalment. Had written to bank to provide reason for non disbursement and time period for the same. ( till date devepoer has not raised any demand for interest) Please advise 1. Shall i take possession without raising the issue of compensation and after possession file claim for compensation with developer ( will my claim be valid after possession ). 2. If on submission of my claim for compensation (post possession) , can developer issue demand for interest on delayed payment and can it get possession bank on account of non payment of the same.
1) if builder has delayed in giving possession builder would be liable to pay interest as per clauses contained in agreement
2) delay in payment of installment was on account of builder failure to comply with conditions for disbursal of loan .
3)if builder has not raised any demand for interest better take possession of flat from builder .
4) you can subsequently move consumer forum against builder and claim interest for delay in delivery of possession .
5) builder will contest your claim and raise counter claim for interest for delay in payment of installment
First check the terms and conditions in the agreement in respect of late payment, the developer can claim interest for delay payment because of the builder has constructed the building step by step with the assistance of the part payment. Developer cannot claim interest as the default was not due to your fault and there was condition breach by the developer so you are not liable to pay interest,
if they demand for interest then You can approach appropriate Court for your remedies
1. As has been advised earlier, take possession of the flat and get the sale deed registered also so that you go out of the clutches of the developer,
2. After getting the title of the flat registered in your name, file a complaint case as suggested in my earlier post.
Dear Querist
the developer may raise the issues regarding the interest if there is any clause in agreement otherwise not.
but you may raise the issue before consumer court after filing the complaint before Consumer Court of jurisdiction and claim compensation due to delay in possession even after taking possession of the flat.
so it will be better to take possession of the flat and after that first of all send a legal demand notice to developer and if the developer is not ready to make the payment within notice period then file civil suit before Civil Court or file a complaint before Consumer court of jurisdiction.
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