• Can I get compensation from builder for flat purchase?

In the March 2015 I booked flat paying 1L rupees.
When I booked my flat builder provided me details showing possession around DEC 2016. I have email of the same.
In the Sept 2015 I did agreement with builder and as per agreement he will provide possession in 30 months from the date of agreement. In excess he will have right to take 6 more months in case he doesn't deliver in these 30 months.
Till the date he is still finalizing building and it will take more 1-2 months for possession of the flat.
When I asked for compensation for late possession he didn't give any details, possibly he don't want to compensate.
Until Jan 2018 I had given all disbursements on time to builder and that covers 80% of the total cost of the flat. From Jan 2018 many purchasers refused to give any disbursement to builder due to very slow speed of work. We asked him for plan then disbursement but he never provided any plan. I didn't get any notification from him to get further disbursements till Nov. 2018 which I paid partially as I didn't want to take more EMI.
In Jan 2018 I asked builder about possession date but he didn't give any idea. I have email chain of the emails for getting possession date and compensation for late. But he never disclosed any.
I was paying EMI 21K at Jan 2018 and 9L given from my side which is not part of bank loan.
Morever every flat purchaser has different possession date i.e 30 months from their agreement so I am from one the very few who are having agreement date got over and others are doesn't look interested in legal action. So all are not in the process to file any complaint against builder.
My questions are:
1. What thing I should do to take compensation from builder? What process I should follow?
2. Can I get compensation after getting possession, as if I take legal action he may not give me possession till all these things getting sort out.
3. For what period I can get the compensation? For 13 months(Jan 2018 to till date) or 7 months(considering 6 months extra time to builder after end of agreement 30 months. If builder doesn't provide possession in extra 6 months, isn't it valid to apply 6 months extra clause?)?
4. What compensation I can get? The rent I am paying or interest from builder for all the money I have provided to builder? If interest at what rate(My home loan rate is 9%)? There is no clause added in agreement to what will happen if possession date will not be met.
5. Do I need to file a complaint under RERA as project is registered in RERA when it was at mid stage and current completion date in RERA is June 2019.
6. If I cancel this flat registration will I get stamp duty around 2L from government?

I am seriously very disappointed with this flat purchase and I am not having any problem if builder cancels the flat or I need to cancel the flat as agreement has clause to provide 12% simple interest by builder annually if registration gets cancelled due to not providing possession on time.
Asked 7 years ago in Property Law
Religion: Hindu

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7 Answers

1. Send a legal notice to the builder and seek compensation in light of delayed possession. Both the RERA Act and your agreement with the builder, entitles you for a compensation in the present matter.

2. Absolutely take possession under protest.

3. Delayed period has to be calculated from the expiry of grace period of 6 months. 

4. You will get compensation in accordance with the interest rate prescribed under MAHARERA.

5. File a complaint with RERA, after issuing a legal notice to this builder. Seeking interest/compensation in this matter is your statutory right flowing from section 18 and 19(4) of RERA.

 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

1. you can file a RERA complaint u/s 18 

2. you can either claim full refund and exit from the project OR claim interest and compensation for delay in handover of possession

3. if you decide to remain in the project then you can claim interest from the stipulated date of possession as stated in your agreement upto the actual handover of possession

4. the stipulated period for handing possession would be expiry of 30m + 6 m grace from date of your agreement

5. RERA provides interest @ Highest Marginal lending rate of SBI + 2% which comes to about 10% approx. depending on the lending rate of SBI

6. You can also claim compensation from builder if you can show to the court the losses incurred by you due to delay in handover of possession

7. if you do not wish to continue in the project then you can get full refund of all moneys paid to builder plus the registration fee plus interest paid on home loan plus service tax. All these would be refunded to you with interest 

8. it is not clear if you can get refund of stamp duty as the same is paid in your name and you can apply to the collector for refund due to cancellation of agreement 

9.you can file the RERA complaint right away. Its not that if you file a complaint the builder will further delay the possession. In fact he may also give you sooner possession, provided he has a valid OC 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1. Sir file a complaint before the RERA authority for compensation for the delay.

2. SIr you can file a complaint now also as RERA won't take much time and he has give compensation and possession.

3.  You can ask compensation after the grace period of 6 months is over.

 

4.  Sir you can get compensation as per RERA that is 10 percent of amount invest along with 10 Rs per sq. fit as compensation.

5. Yes RERA complaint need to be filed, you need to stick to date of completion in your agreement not as registered in RERA,

 

6. You wont get stamp duty amount back from the government. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

File complaint against builder before consumer forum and seek orders to direct builder to deliver possession of the flat 

2) pay compensation for delay in delivery of possession 

 

3) also seek litigation costs 

 

4)in alternative file complaint before RERA seek compensation for delay in delivery of possession 

 

5) don’t file for compensation after taking possession 

 

5) even if you file complaint before RERA or consumer forum builder is bound to deliver possession of the flat 

 

6) you can seek compensation for period of delay as mentioned in agreement 

 

7) you are entitled to bank rate of interest also for EMI paid by you 

 

8) you are at liberty to cancel agreement 

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

1. File Grievance Petition before the local Consumer Court, for claiming all related damages & compensations. You will not be able to get much relief thru RERA office.

2. Govt. dues /duties /taxes are not claimable, in such circumstances and has to be taken as a loss.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

You can get the refund both in rera and Consumer court you can apply for the same. You can file your Complaint at any of these forums

Prashant Nayak
Advocate, Mumbai
34521 Answers
249 Consultations

1.  If there is any clause for delayin construction in the sale agreement, you can invoke the said clause and demand penal interest for the delay period accordingly or you may make a demand  of penalty for the delayed period, the builder failing to respond, you may approach RERA.

 

2.  You mayu take possession with objection and then initiate legal action for the period of delay.

 

3. You can seek penalty for the period of delay beyond the 6 months grace period.

 

4.  The rate of penalty, if not available in the sale agreement, you may quote the same at bank interest rate, let him give a reply after which you can decide further course .

 

5.  If the builder is not cooperating then you may approach RERA.

 

6. You cannot get the refund of the stamp duty already paid./

 

 

T Kalaiselvan
Advocate, Vellore
89987 Answers
2493 Consultations

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