• Right of consumer for under construction property

I had take a flat in Faridabad which was under construction. Builder had promised the date of possession for Aug 2013. The construction was delayed and payment was construction linked plan. I did not release 2 payments after august 2013 as the there were no chances of the possession for next 2 years. Builder threaten to cancel the booking and i had to pay 170000 interest for the delayed payment. Now builder has offered the possession in the month of October 2014 however he has not completed the internal work like wooden flooring, electric connection. He said the all these work will be done post possession only. And he has started charging 200 per day for delay in possession and 2800 toward maintenance.

Can builder charge such amount before completion of the complete work?
Can i seek consumer case for delay in the possession?

Please advise.
Asked 3 years ago in Property Law from Faridabad, Haryana
1) i presume you have taken possession of the flat . 

2) your registered sale deed must b e containing provisions for payment of interest by builder for delay in delivery  of possession . 

3) issue legal notice to builder to pay interest for delay in delivery of possession by one year . also seek directions that builder should complete internal work s 

4) you have not mentioned whether occupation certificate has been issued by muncipal corporation or not 

5) OC is granted by corporation only after the work is completed .

6)  you can also seek compensation from builder for mental torture you have undergone for delay in delivery of possession 

7) builder can recover maintenance after possession is handed over to flat owners for payment of property tax and other amenities
Ajay Sethi
Advocate, Mumbai
46940 Answers
2776 Consultations

5.0 on 5.0

As it seems the possession of the flat has been taken :- If yes looking at above proceed with the following at the earliest 

a. Consult a local lawyer and file a complaint at the consumer forum and seek for compensation on delayed possession 

b. write a letter to the developer mentioning the details of the product (finished flat) that was promised and compare with what has been delivered, additionally ask them time frame they would need to complete the flat.

c. The builder can not black mail you with term that once payments are made then only the finishing would be done - if  is the case file a criminal complain at  your area's police station. 

d. you should also serve a legal notice to the developer to pay the delayed possession charges as mentioned in the  builder buyer agreement.  

e. You should seek information from the development authority office whether the project has been granted an occupancy certificate - if not file a complaint.
Atulay Nehra
Advocate, Noida
1029 Answers
35 Consultations

4.7 on 5.0

1) You can certainly file a complaint in the consumer forum deficiency in service which will take into account both delayed service and include incomplete construction in the current scenario.
2) Take a look at the agreement you entered into with the builder. It will have a specified clause dealing with delayed delivery of possession and the liability in the part of the builder to compensate.
3) First of all issue a legal notice demanding compensation for the delayed possession including interest and or rent for the duration where possession was not granted.
4) Where the builder has defaulted in giving possession how can he charge you? You need to demand compensation. He can demand maintenance only after handing over possession after completion of construction.
5) Therefore do send a legal notice and follow it up with a consumer complaint.
S J Mathew
Advocate, Mumbai
2264 Answers
110 Consultations

5.0 on 5.0

Hi, issue legal notice to the builder and filed a complaint before consumer court for deficiency of service.
Pradeep Bharathipura
Advocate, Bangalore
4561 Answers
204 Consultations

4.5 on 5.0

1. You have stated that you had taken a flat. Did you mean to convey that you had booked a flat by paying the earnest amount, or the title deed was registered in your favour? Has the occupation certificate been issued? If the title deed has been registered then the ownership has passed to you. 

2. I presume that you had entered into an agreement with the builder for the purchase of the flat, in pursuance whereof you had remitted the advance to him.

3. What does the agreement say with respect to the date of delivery of possession? Is time of essence of contract? If the date of delivery of possession has been specifically incorporated in the agreement then the same ranked sacrosanct and the builder was bound to honour it. If no time limit has been given in the agreement then the possession was to be delivered within a reasonable time. 

4. If the agreement does not specify the interest which will be paid by you for delayed payment and also the per day amount to be charged towards maintenance before possession then the builder cannot charge the same. The builder can recover the maintenance charges only after the possession is handed over. 

5. You can move consumer forum for necessary reliefs against the builder. You may seek refund of your money with interest and also compensation for mental torture you have undergone. You can also seek a direction to the builder to deliver the possession.
Ashish Davessar
Advocate, Jaipur
23180 Answers
641 Consultations

5.0 on 5.0

1. You are not supposed to take possession of an incomplete flat,

2. You are also not supposed to take possession of thef lat till completion certificate issued by the local Municipality/Corporation  is obtained by the builder and copy handed over to you,

3. send the builder a legal notice to this effect claiming damages,if things are not rectified within 30 days,

4. If there is no change in the matter, file a consumer case before the local Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming immediate completion & registration of the sale deed of the flat on receipt of payment from you, damages, interest & cost.
Krishna Kishore Ganguly
Advocate, Kolkata
18830 Answers
454 Consultations

5.0 on 5.0

You can register the document only after the completion certificate from Municipality / Corporation. When the registration is completed the possession of the property goes from the hand of builder to purchaser.

As per your words “payment was construction linked plan.” So you check when you have bound to pay next payment to builder. 

1.	Send the builder a legal notice to this effect claiming damages; if things are not rectified within prescribed period shown in the notice .
2.	File a consumer case before the local Consumer Dispute Redressal Forum
3.	you can also seek compensation from builder for mental torture for delay in delivery of possession
Ajay N S
Advocate, Ernakulam
2830 Answers
47 Consultations

5.0 on 5.0

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