I booked a flat with a reputed builder in Noida in 2015 who promised possession in 2017. After the implementation of UP RERA, builder declared project completion date in RERA as Jun 2019. Now, builder has conveyed to me also that flat possession will be given in Jun 2019 only and I will get possession delay penalty as builder buyer agreement only i.e. INR 5 per sq ft per month. My query is, 1. What is the possession delay prescribed as per UP RERA. As I understand that it should be SBI MLCR + 2%. 2. How builder can change delivery date to Jun 2019 to RERA when he has promised me 2017 delivery. 3. If delivery date is changed to Jun 2019, builder should at least pay me delay penalty at SBI MLCR + 2%.
1. As per UP rera, you'll be eligible for a interest @ 12% atleast.
2. The builder cannot unilaterally change the date of possession as per law, but if both the parties agree to it, it is no legal infirmity.
3. Yes. You should serve a legal notice to the Builder asking him to pay compensation interest @ 15% per annum failijg which, you'll file a complaint against him.
Dear Client,
If a project is delayed, developers are required to pay 10% interest to the buyers on the invested amount as against the Rs 5 to Rs 10 per sq feet penalty contracted in the sales agreement undr RERA and recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non-compliance with the Act.
So complain to RERA if penalty not paid acc. to act.
Against change of date, you can withdraw from the project, refund within 45 days.
1. Perfect, your understanding is spot on. This has been recetly notified by UP RERA.
2. He can't. Go through secstions 18 and 19(4) of the RERA Act. It is a fit case that you approach RERA seeking a refund of your deposit or for enhancemet of the compensation which the builder is liable to pay you for delay.
3. Yes, but to get this, one has to get RERA and file a case under section 32 read with section 71.
If you have received in writing from builder that possession would be delivered by 2017 and delivery date has been changed to 2019 you are entitled to compensation for delay in delivery of possession
2) compensation would be as per the State Bank of India highest Marginal Cost of Lending Rate plus two percent.
3) if builder has changed delivery date you can cancel the booking and seek refund of money paid by you with interest
Thanks for the reply. However, I am not able to find applicable interest rate as 10 or 12% or SBI MLCR +2% anywhere in documents uploaded on UP RERA website - Act or Rules Same is clearly mentioned in the Rules uploaded by Maharashtra RERA. Also, there was one office order dated 19-Jun-2018 uploaded on UP RERA (office order not visible now, I have downloaded copy of the same) which says that possession delay penalty will be as per builder buyer agreement only. I can share the copy of this office order.
1. Yes you are entitled to the delay compensation as around 10 percent according to the current prevailing
SBI rates.
2. on change of delivery dates you can take compensation from the builder along with interest and can cancel the booking or ask for the delay compensation,
3. yes.
Pls share the copy of the order you are talking about..
UP RERA had in that past through a notificatin prescribed interest rate as 10 or 12% or SBI MLCR +2% . This notification was also uploaded on its website but I am unable to trace the same now and looks like the same has been taken off the website.
There is no fixed interest rate prescribed under UP RERA, and interest rate what did the party in case there is no builder buyer agreement sign is at the discretion of the presiding officer.
That's why i had mentioned 12 % alteast or not any fixed interest rate in my previous reply. In my experience, court awards 12-15% interest to the aggrieved homebuyers.
Hi,
In the present circumstances, you may also withdraw from the project and ask for complete refund of amount along with interest.
Many states fixed the rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the State Bank of India highest Marginal Cost of Lending Rate plus two percent.
2) The interest percentage and the compensation amount (to be mentioned in the agreement of sale at the time of booking) in the case of any default could differ state-wise. "The state governments are vested with the powers to fix the rate of interest in the case of any defaults by the builders.
3)Each state government is required to notify the applicable rate of interest in the case of defaults in its rules and regulations under the Act. Hence, the rate of interest may differ from state to state
The RERA Act Chapter 1, section 2(za)-ii says the rate of interest should be equal for both buyers and builder. Further the Central Government has recommended a standard rate of interest as SBI’s prime lending rate (PLR) + 2%, which comes to around 10%, through the draft rule, for the states to adopt. Most of the states, such as Maharashtra, Madhya Pradesh, Haryana, Punjab, Bihar, Bengal, Odisha have adopted the central government recommendation and have stated SBI PLR / MCLR + 2% as rate of interest as delayed penalty.
UP RERA rule is silent on this, Show order,
Well, as per sec 2za, penalty shall be same for both and office order if assailed , shall be declared void as violation of RERA act.
Firslty, as per the information mentioned in the above query and further sub query, makes it clear that you have been cheated by the builder.
Secondly, the date which he has been changing from time to time doesn’t match with any such rules so prescribed in the RERA act.
Thirdly, but, yes it is true that the compensation for delay would be as per the buyer builder agreement, and that is the reason why we always on our forum say that please read the documents carefully, if find something which is less favourable to you then negotiate for the same.
1.I have e-mailed you the order
2. At the time of registration with RERA builders are giving new deadline, you will get compensation for the delay that has occurred for you.
3. Yes the builder is bound to pay, if the builder does not pay then you may approach RERA and file case against the builder.
The said order being referred by you can not be treated as precedent and the rate as given in the document that I have sent you will be followed.
Regards
1.Many states fixed the rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the State Bank of India highest Marginal Cost of Lending Rate plus two percent.
The interest percentage and the compensation amount (to be mentioned in the agreement of sale at the time of booking) in the case of any default could differ state-wise
2. That is why he is accepting to pay the interest for the delay period.
3. RERA has taken steps to not only make the promoter accountable but also make them pay compensation and penalty in cases of default of any provision of the rules. The enforcement of these could still be a question unanswered and will depend on the state RA to get them implemented.
The state governments are vested with the powers to fix the rate of interest in the case of any defaults by the builders. Each state government is required to notify the applicable rate of interest in the case of defaults in its rules and regulations under the Act. Hence, the rate of interest may differ from state to state."
However, I am not able to find applicable interest rate as 10 or 12% or SBI MLCR +2% anywhere in documents uploaded on UP RERA website - Act or Rules Same is clearly mentioned in the Rules uploaded by Maharashtra RERA. Also, there was one office order dated 19-Jun-2018 uploaded on UP RERA (office order not visible now, I have downloaded copy of the same) which says that possession delay penalty will be as per builder buyer agreement only. I can share the copy of this office order.
If you cannot any details in the internet then you may personally visit the nearest RERA office and the collect the entire details in person.\