Hello Team, My Builder is demanding huge Interest (Rs.1,18,000) as the payment (Rs.46,00,000) delayed for a month due to incorrect document provided by builder. before I enter into the agreement, I clearly communicated my work schedule to Builder, that I will be intermittently travelling outside India, so I carefully planned all dates to ensure I will be making payment on time. 05th June 2017 – I received the sale agreement. 10th June 2017 - I received all other documents (demand letter, NOC, etc) as requested by bank. 12th June 2017 – When I spoke to Bank, to submit all the requested document for first disbursement, noticed there is a typo in my spouse name, Typo made by Builder, I immediately reported for revised agreement copy. 17th June 2017 – after multiple follow-up I received the revised copy from Builder, however I had to travel for 4 weeks out side Indian on the same day for my work purpose. 18th July 2017 – I back to India, submitted all the documents to Bank, they took few days processing time. 21st July 2017 – I handover the First disbursement cheque to Builder. I live in Bangalore, as per act how much % interest he suppose to charge me if there is any delay while making payment? how does late interest calculated? do we have any Govt norms? Is it from the date of agreement or documents received dates? Can you please suggest what best both parties can do to figure out this issue. Appreciate your inputs.
1) rate of interest to be recovered by builder is as per clauses in agreement
2) the delay in making payment was on account of mistake made by builder in your spouse name
3)request builder to waive off the interest
4) if he refuses to waive interest pay amount under protest and file complaint against builder before consumer forum seek refund of interest charged
Interested on delayed payment is a general practice adopted by builders and the modalities for the same, included the rate at which it were to be charged must have been detailed in the builder-buyer Agreement signed in between you and him. Having said that, since the delay in your case is due to the fact that the builder made a mistake and did not stick to the schedule provided by you, you may resolve the issue with him by having a mutual discussion with him. However, I'm afraid that if it doesn't helps, you'll have to approach either the consumer forum or the Real Estate Regulatory Authority.
Hi, as per law there is no hard and fast rule for payment of delayed interest but you have to go through the agreement to sale and construction agreement in which there is a specific clause then according to that clause you are liable to pay the amount .
2 But charging the interest is too high better you can file a complaint in the district consumer forum against builder for deficiency of service.
Sir, there are different norms of various builders . Generally builders charge 18 to 20 % per annum. However the exact details will be there in the builder buyer agreement entered by you. Further you can approach consumer court forum , if the interest charged is biased.
Hello,
Delay charges are calculated as per the agreement that you must have signed with the builder at that particular time.
If you think that he is charging exorbitantly then you can file a case in the consumer forum.
Regards
1. builder cannot charge penalty for late payment.
2. builder is bound to give reasonable time for processing of loan because builder had knowledge that you'll apply for finance.
3. only agreement does not give any right (according to section 54 TP Act) except that parties to agreement are ready to conclude the agreement on certain terms.
4. so he cannot force for late payment charge if there is reasonable delay in finalization of loan.
how does late interest calculated? do we have any Govt norms? Is it from the date of agreement or documents received dates?
A. if any dead line has mentioned in the agreement but rate of interest has not mentioned then according to section 34 of the CPC builder can charge @6% per year simple interest. if no such dead line has mentioned then builder has no right to claim penalty if there is reasonable delay in making payment.
1. If you have put a clause in the agreement for sale of the flat that the builder will provide all the required documents to you for availing Bank loan, then he can not charge any interest on you for your delay in making the payment by taking loan from the Bank since he can not take benefit from his own wrong doing.
2. Strategically, you can pay the interest under strong protest and take possession of the flat and get the sale deed registered.
3. Thereafter you can file a complaint case before your local District Consumer Dispute Redressal forum against the builder alleging deficiency in service and unfair business practice claiming refund of the said interest amount illegally and forcibly collected from you with interest, damage and cost.
4. This is a very good case to win.
The percentage of interest would have been mentioned in the sale agreement itself for the delay in payment, if the amount charged towards interest is exorbitant then you may point it out and refuse to pay the same invoking the clause
The penal interests if mentioned in the sale agreement itself is exorbitant and unilateral i.e., beyond 18% p.a., then you agitate over it and raise your objection to this by issuing a legal notice to the builder through your lawyer.
