Yes the it was default on part of the builder you can recover the same amount from the builder you can issue a legal notice to the builder and further if on notice they fail to refund the interest amount you can file a consumer complaint against the builder in district consumer forum.
Interest charge for delay in payment due to non submission of document by the builder
Respected Sir, I have booked a flat in an ongoing project at Tezpur of Assam. It is mentioned in the agreement that for delay in payment will attract an interest @1% P.M. After booking the flat i arranged all the document and submitted the same to the bank for the home loan. It was found that power of attorney was missing in the file as the builder is a partnership firm. Bank contacted the builder and myself also visited many times to their site office for that document. At first they said it is not required and they also went to the bank for the clarification. Finally they submitted the document 1 month ago after that bank has taken its time to process and my loan was sanctioned on 11-3-2019. After that when i visited the builder for the demand note for payment , i have found that they have charged me with an interest of Rs. 66906 (including interest) for delay in payment. The delay was due to as they did not provide the power of attorney and the process was delayed. I want to mention that i have instructed the bank to pay the whole amount they demand including the interest charge as i don't want to bear any more financial burden. So can i get relief legally for such interest charge for which I am not responsible and adjust the amount i my next installment? if possible kindly advice me. Thank you.
Asked 5 years ago in Property Law
Religion: Hindu
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11 Answers
Yes you can approach rera or Consumer court for the same
1. Typically such issues CANNOT be settled in the manner you mentioned or even by writing & explaining to the Builder, since they will not accept their deficiency.
2. File a grievance petition before the Local Consumer Court, for the builders harassment and negligence & deficiency and claim waiver of interest and also claim damages and compensation for the harassment.
Keep Smiling .... Hemant Agarwal
Delay in making payment arose as builder had failed to furnish POA
2) builder ought to waive interest charges
3) if he refuses file complaint against builder before consumer forum and seek orders to direct builder to refund interest charged
1. The demand for interest has no basis since they themselves made the delay in processing and hence they can not take advantage of their own advantage.
2. So send them a legal notice seeking recall of this demand for interest letter.
3 If they do not then you will have to file a case before the consumer forum where you would get the necessary reliefs.
Issue a legal notice through an advocate and file a complaint in District consumer forum.
1) This is not your fault that POA was delayed by builder, You can tell builder to waive off the interest amount which has been charged to you.
2) Otherwise you may make co plaint in the Consumer Forum of your city and in the RERA office for this injustice transactions.
it will be better that first of all try to settled the matter with the builder amicably and request him for the waived off the interest, if the builder is not ready for the same than you may issue a legal notice through counsel.
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Complain to RERA.
You should not accept the responsibility for the alleged delayed payment to the builder.
You issue a legal notice to the builder stating that the delay was from the builder side who did not submit the proper documents to bank to get the loan sanctioned hence he is responsible for the delay and not you, therefore he cannot demand the interest for the delayed payment which was cause by him.
If the builder is still insisting on it then you may drag him to consumer forum too for relief and remedy.
Dear Sir,
A. if any dead line has mentioned in the agreement but rate of interest has not mentioned then according to section 34 of the CPC builder can charge @6% per year simple interest. if no such dead line has mentioned then builder has no right to claim penalty if there is reasonable delay in making payment.
