• Builder asking for holding charges and maintenance amount

Hi,

Currently I live in Pune but I purchased a flat in Noida.
I have made full payment of property by 7th March 2017. On final payment, i came to know that builder has imposed interest by saying that there were delay payments in between. 
On 21st July i received a letter for registry from builder. 
In Jan2018, I got another letter which mentions that I as a Buyer of flat has to pay handling charge of 5/- per sq. ft. per month along with maintenance charge of 2/- sq. ft. per month because you did not take possession.
Apart from that he is asking for GST of 18% on all penalty i.e. Interest amount which was imposed earlier + Holding charges + Maintenance charges.

Please guide me on this
Asked 6 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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8 Answers

When was OC issued ?

2) if you failed to take possession after issue of OC then builder is entitled to recover maintenance firm you for delay in taking delivery of possession

3) GST is payable on under construction property

4) does your agreement contain clause regarding holding charges

5) if so builder can recover holding charges from you

Ajay Sethi
Advocate, Mumbai
94714 Answers
7530 Consultations

5.0 on 5.0

File a case against him in consumer forum

Subhendu Ghosh
Advocate, Barrackpore
234 Answers

4.0 on 5.0

Hello sir , if the above penalties that are imposed by the builder were not mentioned in the BBA ( builder buyer agreement ) then you can approach consumer forum to get them waived off ..it is advisable to first send builder a legal notice asking him to clearify the penalty imposed due to delay in payment and waiving off the handling charges ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

1) When sale deed took place and does he mentioned to take possession of flat and given letter to you. Secondly does he had received completion certificate from municipal corporation.

2) Did he took one time maintenance from you ?

Please provide bifurcation of amount paid to builder date wise.

3) After reading sale agreements than will come to know about your above query pictures clearly.

Ganesh Kadam
Advocate, Pune
12930 Answers
255 Consultations

4.9 on 5.0

Please see the builder buyer agreement which must have a penalty clause in case of delayed possession by builder or buyer.

If it is provided which must be in the right to pay the penalty will be your part along with the interest and mentinance charges from the date possession offered.

Please discuss with builder for an amicable solution and if there is no clause you may go to the consumer forum.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Dear Client,

You are not to make any payment which are not in the builder buyer agreements, post agreement demands are illegal. In reply to letter, make builder cautious, that you will complaint RERA .

When penalty charges incurred - Pre GST and Post.

Also, The Goods and Services Tax (GST) rate of 12 percent will be applicable on under-construction properties.

Yogendra Singh Rajawat
Advocate, Jaipur
22633 Answers
31 Consultations

4.4 on 5.0

I got another letter which mentions that I as a Buyer of flat has to pay handling charge of 5/- per sq. ft. per month along with maintenance charge of 2/- sq. ft. per month because you did not take possession.

Have you gone through the conditions of the sale agreement with reference to this clause which the builder is now trying to impose

If there are no such conditions, you may protest over it and even refuse or negotiate the amount if it is found to exorbitant.

Apart from that he is asking for GST of 18% on all penalty i.e. Interest amount which was imposed earlier + Holding charges + Maintenance charges.

Owners of flats will have to pay 18 per cent GST on maintenance charges.

However, services provided by government or local authorities to persons other than business entities are exempt from GST. But the FAQ's maintain that "sinking fund, repairs and maintenance fund, car parking charges, non-occupancy charges, or simple interest for late payment of dues owed to a CHS will attract GST as these are collected for supply of services meant for members.”

T Kalaiselvan
Advocate, Vellore
84915 Answers
2195 Consultations

5.0 on 5.0

Hello,

Challenge the such amount before the State consumer forum at Lucknow if the property value is more than 20 Lakhs. the builder is imposing such penalties as against the holding charge.

See if the same is mentioned in the builder buyer agreement or not.

Regards

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

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