• Builder denying to build house after sale agreement due to area price hike.

Hello Sir, 

I booked an independent house in a gated society in Feb 2017 and paid the 20% of sale consideration amount as part of agreement. In agreement, it was mentioned that it will be completed and give possesion in 5 months. But still the house is only half constructed. 

Later, got to know that few of the independent house of this gated society is combinely mortgaged by Tata Capital (because builder took some loan and repaying slowly). And my independent house is also in this mortgage list. When I inquired about it from builder then he told that we will repay whole loan amount to Tata capital in few months and I should not be worried about it. But till today itself, they didn't clear the total loan amount. 

As of now, I have paid 20% of sale consideration amount only and contacted one of the bank for home loan. Each and every criteria was fulfilled from my end and bank is ready to sanction home loan for rest 80% amount & waiting to release the amount from last 6 months, once 80% construction is completed. But the independent house is only 50% completed as of now. 

Now, the price of home and land in this area got increased a lot and builder is demanding extra 10 Lakhs on sale consideration amount to build the same house now. Or he is saying to take your money back. 

But I don't want my money. I want my house in same sale consideration amount as per agreement. 

I am daily facing harassment from builder and feeling helpless from last 1.5 years. 

Kindly help me that what action I can take or how should I proceed to get my house on my name.
Asked 4 months ago in Property Law from Hyderabad, Telangana
Religion: Hindu

They can not demand money other than what was agreed upon. Further they can not also unilaterally change the terms of the Contract. If any terms of the Contract is to be changed, it has to be agreed upon by both the parties and therefore their demand of extra money as well as change of exit plan is contrary to law and further amounts to deficiency in service. Therefore you can file a Complaint in a district forum.

Mohammed Mujeeb
Advocate, Hyderabad
5383 Answers
3 Consultations

4.5 on 5.0


You may send a Legal Notice to the builder and later if he does not comply with the term of notice and waive off the additional price then you may file a case against him in the consumer forum.


Anilesh Tewari
Advocate, New Delhi
14481 Answers
203 Consultations

5.0 on 5.0

File suit for specifuc performance.

Abhilasha Wanmali
Advocate, Nagpur
894 Answers
1 Consultation

4.8 on 5.0

1) issue legal notice to builder to complete construction and hand over house to you

2) mention that there is delay in his part in carrying on construction and question of payment of additional Rs 10 Lakhs does not arise

3) file complaint against builder before RERA and seek orders to direct builder to complete construction within stipulated period ,handover possession and obtain OC

Ajay Sethi
Advocate, Mumbai
58246 Answers
3514 Consultations

5.0 on 5.0


1) Builder cannot ask the customer to pay him the market prices and as such the demand of extra 10 lakhs from the builder is grossly illegal and against law.

2) In your case, you should issue legal notice to the builder on the following lines

a) That the builder has delayed the construction and

b) That he has not come forward for registration of property in your name and hand over possession of property despite the project being delayed by over 14 months and

c) That his demand for Rs10Lakhs over and above the agreed sale consideration is grossly illegal and

d) That in the event of builder not completing his part of contract(i.e handing over of possession and coming forward for registration) within next 30 days, you will pursue legal action against him.

3) In your case, in all probability, the builder must not have registered under RERA.

4) You are at liberty to approach the consumer forum or civil court for relief(issue directions to builder to come forward for registration and hand over possession).

5) Under consumer laws, the builder is liable to pay you interest for your advance monies that are lying with him or alternatively pay you costs of alternative housing.

6) Adequate care should be taken by you to ensure that the builder obtains a No objection certificate from Tata Capital , prior to the registration of property in your favour.

Hope this Information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
1589 Answers
229 Consultations

5.0 on 5.0

Sir issue legal notice to the builder.for delay and the unusual demand of the price hike that is malpractice and deficiency in service. Further seeking compensation for delay and completition of work in sitpulated time as agreed under the agreement.

If the builder on notice fails to provide relief you can file a RERA complaint seeking relief and direction for builder or alternatively file a consumer complaint.

Shubham Jhajharia
Advocate, Ahmedabad
12946 Answers
49 Consultations

5.0 on 5.0

Dear client,

Complain to RERA , builder is bound to deliver possession and on same price as decided in sale agreement.

Yogendra Singh Rajawat
Advocate, Jaipur
8139 Answers
7 Consultations

4.7 on 5.0

Approach RERA after tendering a legal notice upon the builder in the present matter.

Having signed an agreement with you, the builder cannot insist for a hike in the sale consideration.

Vibhanshu Srivastava
Advocate, New Delhi
7833 Answers
108 Consultations

5.0 on 5.0

You can file a suit for specific performance of contract since there is an agreement between you and builder he's bound to fulfill it and if he refuses to handover property and asking you higher amount approach court by filing suit as mentioned above

Swarnarka Chowdhury
Advocate, Mysore
1688 Answers
3 Consultations

5.0 on 5.0

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