For delay possession beyond date, you are entitle to interest or refund with interest. Extension dose not override your remedy. Even RERA is clear on this point, you can either claim refund with interest or interest till possession . Complain to RERA
Delay in possession
Hello all, Need your guidance. I have booked a flat in June, 2018 and got the registration done in Jan 2019 due to loan process. The project was due to be delivered in the month of June 2018 but the builder obtained Extension till Feb 2019.Further the project is delayed due to not getting CC for the extra FSI. The builder further obtained extension till FEB 2020. Now, In the agreement it was stated that if the possession is not being given on or before 01.03.2019 interest @ SBI MCLR + 2% will be paid. I want to understand will extension under RERA override the agreement and give shelter to the builder or we will be eligible to get the Interest till the possession. And what course of action to be taken by us
Asked 6 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
12 Answers
The agreement would always take a precedence over govern regulation unless what has been stated in the agreement is illegal.
Therefore send a legal notice and if they do not respond then file a complaint against them immediately in the state consumer redressal forum or rera tribunal.
Regards
You will be eligible for the interest as per the agreement for delay. You can file a RERA complaint as per your agreement and can seek interest on delay.
Hi,as per section 18 of RERA you are entitled to get a refund at the rate of 10.75 percent per annum ,till handing over of possession by the builder
Builder is bound to pay interest for delay in delivery of possession
the terms of agreement are sacrosanct and binding upon builder
The extension granted by RERA will give shelter to the builder from making the payment for delayed construction/possession.
He may mention this as a reason to not pay the interest as agreed in the agreement.
You may approach RERA if you are aggrieved by this though the response may not be in your favor.
No the agreement date will be considered for delay penalty not the rera extension date. You can file complaint to rera for delayed possession
You can make complaints in RERA and Consumer Forum against builder for not giving possession on time or interest on delay amount.
Dear Client
you can file a complaint Under Section 19 of the act with RERA for getting Interest for delay in possession but builder will not be liable for Interest if the delay is due to unavoidable or Natural reasons which are beyond the control of Promoters.
1. Well, since there is in inordinate delay you have two options- i. to seek penalty as mentioned in the agreement, ii. to cancel the agreement and seek full refund with interest.
2. In the undergoing project the RERA has no applicability nor it can override the terms of agreement.
3. To force either f your options as mentioned above you can file a case before the consumer forum seeking either f the releifs as advised.
Under Section 18, if a builder fails to hand over possession of the flat as per the date mentioned in the Agreement of Sale, the homebuyer has two options, either to terminate the agreement and seek refund or to continue with the project and claim compensation. If he decides to exit the project, the builder will be liable to return the entire amount paid for the flat with interest. On the other hand, if the homebuyer opts to continue with the project, he can claim interest for every month of delay till the time the apartment is handed over.
- As per the information mentioned in the present query, makes it clear that you are little confuse about the extension given by the authority to the builder and the enforcement of the agreement between you and the builder.
- It is for the builder to seek the extension, but he would never have disclosed the fact about clause in the agreement and therefore, he got the relief what he sought for.
- Now, when the agreement has been violated then you should approach the RERA for damages/ compensation or even cancellation of the agreement and return of money with interest.
- Then RERA would only listen to your claim relying upon the agreement that you have got executed.
