Fit case to approach RERA and seek compensation/interest for delay in terms of section 18 and 19(4) of the RERA Act.
You may file a complaint under section 32 of the RERA Act.
Uttar Pradesh Rera Guidelines
I have bought a flat on 6 August 2013 in Logix Blossom County. As per Rera registration project, the modified Start date is [deleted] and end date [deleted]. Now Builder is offering possession (October 2019) then I would like to know about the delay interest I should receive from the builder. As per agreement delivery was due within 18 months after the agreement date with 6 month grace period whereas delay charges applicable to builder at the rate of Rs.5.per sqf per month for each completed month of delay calculated from the date of the expiry of the grace period . Kindly advice.
Asked 6 years ago in Property Law
Religion: Hindu
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12 Answers
you are entitled to compensation for delay in delivery of possession by builder for 4 years
2) the promoter has to pay interest for every month of delay, till the handing over of the possession
Dear Sir,
You can ask interest on delay period from date of completion mentioned in registered agreement without considering grace period. In Maharashtra it would be MCLR - SBI + 2%.
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act came into force from 1 May 2016.
The Purpose of this Act is:
- To establish the Real Estate Regulatory Authority for regulation and promotion of the Real Estate sector.
- To ensure transparency in projects.
- To protect the interest of consumers in the Real Estate Sector and to establish an adjudicating mechanism for speedy dispute redressal.
- To provide proper information about the Builder.
- Provide recommendations to appropriate Government on in matters relating to the development & promotion of real estate sector;
The Salient Features of this Act are:
- It establishes the State Real Estate Regulatory Authority as the government body to be approached for redressal of grievances against any builder.
- This law vests authority on the real estate regulator to govern both residential and commercial real estate transactions.
- This law makes it mandatory for developers to post all information on issues such as project plan, layout, government approvals, land title status, sub-contractors to the project, schedule for completion with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to the consumers.
- The maximum jail term for a developer who violates the order of the appellate tribunal of the RERA is three years with or without a fine.
- Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures that any delay in project completion will make the developer liable to pay the same interest as the EMI being paid by the consumer to the bank back to the consumer
- The developer cannot make any changes to the plan that had been sold without the written consent of the buyer.
- Every project measuring more than 500 square metres or more than eight apartments will have to be registered with the RERA.
The builder has also undisclosed escalated the area i.e. 5% of the total flat area and charging the same with the same base rate. this escalation clause is mention in agreement too. when I enquired then they told this is a random area like guard room, an increase of generator room etc can builder increase the area by own will and charge the same to its buyers?
Asked 6 years ago
builder cannot arbitrarily increase the carpet area of flat without consent of flat owners
Buyer to liable to pay for the area booked under the agreement, if builder has exceeded the area than price shall be negotiable or buyer can refuse and demand refund with interest.
Delay charges shall be same which buyer had to pay on late payment. Escalation price shall be borne by builder as he only extended the period of project and you are entitle to interest on delay possession. .
Warm greetings!
Delay Interest will be 10% per sq ft and SBI prime lending rate 2% is not adopted by your state whereas the other state its existing.
If your not happy then can go for cancellation and ask for refund of amount with interest.
Once mentioned in agreement they cannot again increase or decrease the area ..
Such type of case are being referring under the RERA Act which helps the people from builder to get their possession. You can also file a complaint under Consumer Protection Act or You can also file a civil suit for recovery of said amount , if you don't want to take FLAT.
You can issue a lawyer's notice to the builder refusing to pay the cost of the increased area as it has been increased without your consent.
Yes you are entitled for compensation for delay in possession of flat.
You should approach RERA against builder for claiming compensation as well as interest on delay of possession.
Yes, you can claim penal interest for the period of delay as per the agreement clause in this regard.
If the builder is refusing to pay you may drag him to RERA on this and get the the relief.
Some developers have found a new way to milk home buyers of their hard-earned money. People who booked and paid for apartments are now getting notices from their builders asking for extra money for increase in “super area” - the space reserved for lifts, passageways and clubs in a building or society. Buyers have neither given permissions for the increase nor do they know about the exact specifications of the super area increase.
You can issue a lawyer's notice to the developer refusing to pay the cost of the increased area as it has been increased without your consent. If the possession is refused you can sue the builder to recover the possession.
You can complaint to rera or consumer Court. You can also file complaint under criminal law for the same
