• Delay charges

I have signed a contract back in 2012 that if I do delay in payment I will pay @ 18% interest. At the same time if the builder delays, he will pay me back at Rs 4 per sqft. I have delayed some (25lacs for 12 months) payment for which the interest is coming to 169000/- and builder has delayed by 7 months on approx 80lacs. But the penalty he is paying is 35k approx. 

The agreement that i have signed is unfair. I have requested to waive off the interest but he is not ready. Is there chance for me to file a case against the builder and get the 18% interest for his delays also.
Asked 6 years ago in Civil Law

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6 Answers

Hello,

You can send him a legal notice to this effect and then can file a case directly in the State Consumer Forum.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

1) if builder has charged you 18 per cent interest for delay in making payment then builder should pay you interest at 18 per cent for delay in delivery of possession

2) the terms of agreement are arbitrary, one sided and in favour of the builder

3) file complaint before consumer forum against builder and forum would direct builder to pay interest at 18 per cent

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Hi, you have to file a consumer complaint against the builder and ask them to repay the interest for delay in handing over the possession of the flat.

Pradeep Bharathipura
Advocate, Bangalore
5604 Answers
335 Consultations

4.5 on 5.0

The law is well settled. The builder is liable to pay you interest for delay at the same rate which he charges from you when you defaulted in making timely payments of the installments. Approach the consumer forum and seek the compensation from builder m

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

You have signed the agreement in 2012 and now in 2017 find that the clause for compensation for delayed projects stated by the builder is unfair. You are raising the issue now because you have delayed in making payments and builder is charging you 18% on the other hand since he also has delayed he is not willing to pay 18% to you but a paltry sum of Rs.4/- per Sq ft., which translates to a very paltry amount. There is total disparity and the same is not equitable.

Consumer courts have been consistently holding in several complaints filed before it, that builder must pay the same interest in case of delay in completing the project as he collects from the consumer/buyer in case he delays in making payments to him. Based on this it would be wise to contact a lawyer and start the process, now you even have the option of approaching the Adjudicating Authority, Ministry of Housing, Karnataka under the RERA Act, 2016.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

The penal interest charged by the builder is exorbitant and illegal in terms of the penal interest he agreed to pay for the delay from his side.

You may ask him to send the demand notice in writing after which you can dispute the same by issuing a reply notice mentioning the unjustified agreement and claiming his side agreement to be invalid on the same lines.

But the reply notice should be by a carefully worded draft so that you do not get into trouble by your own commitments.

The unfair agreement should have been thought over when it was entered, however you can take up the matter through consumer forum too, if necessary, but consult a local advocate on this before taking any decision and take his opinion on all such further issues.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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