• Builder is neither completing the construction of Flat nor giving back the money

Dear All,
I had booked a flat in a complex in Vadodara area way back in 2014 for my own residential purposes. The payment for the Flat is construction linked and also financed through a Bank. Though the Builder had promised to give possession of the Flat by 2015 and signed necessary vakalatnama to this effect. But as on date, I'm still waiting for the completion of flats but the payment which was linked through the construction is done based on the percentage of work completed by Builder. Though the total payment is not yet done, But somehow the Bank has disburesed payment in excess of the Flat completed so far (construction completed so far). Moreover, the the complex is not yet registered under Gujarat RERA. And the Builder is promising to complete and give possession of the Flat by end of 2019 only. The complete complex consists of about 20 Buildings and out of these only 5 Buildings are completed and people are living in them. I have requested the Builder either give back my money or to complete the construction of Flats on urgent basis but so far no concern shown by the Builder instead he has resorted to threatning and asking for the balance payment. At the moment The Builder has given me a spare flat (spare flat is smaller than my booked flat) to live till my Flat gets completed.
Please advise what legal remidials I can look forward to.
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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8 Answers

1) If he had given you spare flat to live for time being just adjust with that a try to complete your flat and get done with it as soon as possible.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Since builder has offered you smaller flat to stay till your building construction is completed you may not get substantial reliefs in case you file complaint against builder before consumer forum

2) you can seek compensation for delay in delivery of possession by filing complaint before consumer forum

3) seek orders to direct builder to deliver possession of the flat within stipulated period

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

If you do not want to avail the facility of alternative accommodation as an interim relief you may reject his offer and issue a notice to him communicating your decision to cancel the booking owing to his inordinate delay in completion of construction.

You may demand him to repay the amount with interest from the date of payment since the entire fault is in his side.

You may drag him to consumer court for relief and remedy if he is not complying with the demand made.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

Dear Client,

It is mandatory to get registered with RERA under construction proejct, Complain to RERA, along with this your open to file criminal complaint and consumer company for refund, compensation, or possession.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. You'll have to serve a legal notice to the builder seeking refund as well as interest and damages on grounds of delay or can give him 15 days time to hand over the peaceful possesssion of the flat booked by you.

2. If he fails to adhere within 15 days of the receipt of legal notice, you may approach Consumer Forum by filing a complaint against the builder for deficiency of services and unfair trade practices adopted by the builder.

3. If you want to make a strong case against the builder, you'll have to reject the alternate accomodation, otherwise the builder can show bonafide in the court and subsequently get relief.

Regards.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

In the first instance you will have to issue a legal notice asking the builder to complete all pending works and hand over the flat within a specified period (to be determined by you) on receipt of this, if the builder fails to comply with your demands, then you should file a consumer complaint against the builder before the consumer court (District or State) and the court will direct the builder to complete the project within a time period fixed by them. Or alternatively if you wish to cancel and claim refund along with delay compensation, you may do so.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

I have solved many cases like this. The basic principle of law is if a party breaches a contract he will be bound to pay all losses which arose in the natural course or which the defaulting party knew the non-defaulting party would suffer. Lately cases of unreasonable delay in handing over possession to the Buyers/ Purchasers have been on a steep rise. The Buyers are left in the lurch after investing substantial money when the Builder does not abide by their own Builder Buyer Agreement and handover the possession within the stipulated time.

Legal options are always available for you in this regard. You have a right to get your hard earned money back with compensation for mental and physical agony faced if the builder is not able to give the possession within the stipulated time. I would suggest you to send a legal notice to the builder. All legal action can only be taken once notice has been served upon the entity or individual you wish to take to court. It is only this process that legalizes bringing a matter to court. The intimation sent is known as a legal notice. A legal notice is, therefore, a formal communication to a person or an entity, informing the other party of your intention to undertake legal proceedings against them. This notice, when sent, conveys your intention prior to the legal proceedings and thus, makes the party aware of your grievance. Many a times, a legal notice served will bring the other party on heels, and the problem can get resolved out of court too, with fruitful discussions on both sides. And, if the other party is still not heeding to the grievance, one can always start the court proceedings after a particular interval, as stated by the law. Although a legal notice can service as a purpose of negotiations between the parties and save time, effort and money that are usually spent in court cases.

SHRI GOPAL VERMA

ADVOCATE ON RECORD

SUPREME COURT OF INDIA

Shri Gopal Verma
Advocate, New Delhi
312 Answers
5 Consultations

4.0 on 5.0

If he doesn't adhere to your legal demands then you can file consumer complaint against him.

Prashant Nayak
Advocate, Mumbai
27224 Answers
88 Consultations

4.4 on 5.0

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