I booked a Flat in subvention scheme and paid 10% but even after grace period over it is not completed yet , Even structure is also not made. ~ Since the Bank Subvention period is already completed and Builder did not keep promise ”No Emi till you get the Key” and additionally Now my Pre EMI of amount 19375/Month from Bank is also started since July’17 and it is unplanned and unnecessary Burdon on my shoulders. ~ Since I have another Liabilities with me So I can’t pay these EMI’s any further. And there is no sign of near completion of complete society by 2022. Since Builder is failed to keep his promise So Considering current construction situation I am forced to cancel this Unit. ~ cancelation charges are 10% in Agreement, considering 2022 possession it is wiseble to cancel it. as interest period is more then the paid amount. In case builder delays what is the chance of it's cancellation. I need expert advice on this case
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1) if the builder fails to complete construction within stipulated period in the contract you are at liberty to cancel your flat booking
2) you can seek refund of money paid by you with interest
3) also claim litigation costs and compensation for mental torture undergone by you
4) builder cannot claim 10 per cent cancellation charges as builder has failed to complete construction within stipulated period
Builder can not claim any charge for cancellation since he has failed to complete the project on time. Please ask for cancellation and seek refund alongwith interest. If he fails to respond then you can file a case in consumer froum or in RERA (if the builder is registered with RERA).
I practice in UP, let me know if I can be of any help.
Regards
Hii, instead of cancelling your flat and paying a penalty of 10 percent , file a complaint case in consumer court ask for the refund of your money alongwith interest of 24 percent per annum .. The courts are taking strict actions against builder who have defaulted on thier promises and are using public money to satisfy their own personal gains
The inordinate delay and the mental depression due to this can be strong grounds for intimating the decision to cancel the booking of the apartment/flat with the builder.
A subvention scheme in which the home buyer pays 10-20% of the price of the apartment at the time of purchase. The balance is paid by a bank to the developer as a loan under a three-way agreement between the developer, the buyer and the bank. While the project is under construction, the developer pays the interest on the loan to the bank. The bank disburses money to the developer as construction progresses. The buyer's EMIs begin only after he gets possession.
When the project got delayed, the buyer had to start paying the EMI even before he had got possession of his apartment. He thus ended up bearing the burden of both rent and EMI simultaneously,
Don't jump headlong into deferred payment plans where no bank is involved and the developer bears the entire cost of development by himself. "Such schemes highlight the developer's desperate financial situation
Another risk in subvention is that if the developer defaults on interest payment, the buyer's credit record gets marred. Things to watch out for Only invest in schemes offered by credible developers, especially those with the financial wherewithal to complete the project. "In their desperation to push sales, developers are offering very attractive schemes.
