All Experts . I booked a flat in June2013 in Bangalore North area. The sale agreement also done during the same time. The Agreement has the possession date as mid June 2016 plus six months of grace period. It took 3 more years to complete the project and now the project is ready and builder is insisting to register the property . The compensation for delay is offered as per the agreement done in 2013 @ 3Rs/sqft , which is pretty less as per the RERA act. Few queries, when the sale agreement was done , there was no RERA act . But since the project was still under construction came under RERA act. So the compensation will be based on what agreement states or what RERA act states ? Please guide as the builder is not ready to pay anything more than whats there in the agreement.
Under construction projects comes under RERA.
Builder is liable to refund the money of the buyer and pay a certain amount of interest for the period of delay or Builder will compensate you @ on same interest rate you were to pay on delay payment or 10%.
You can challenge the said compensation being less in rera or consumer court
You are entitled to compensation as per RERA
2) building was under construction when RERA came into force and provisions of RERA would be applicable
See the least compensation you shall get shall be as per the agreement though since the project was still under construction for the period of delay you can file a RERA complaint and can seek compensation as per RERA.
1. Under Construction properties would attract rules & regulations of RERA, which includes interest /compensation as per RERA Act.
2. The Agreement of Builder will be overrided by RERA Act and you can claim compensation under RERA. However for this you would have to file your grievance complaint with RERA, with all available documentary evidences.
Due to the delay, ongoing projects also came within the scope of RERA after its enactment, hence the builder is liable to pay compensation as per RERA Act and not as per the sale agreement which is a paltry sum of Rs.3/- per sft.,
You can proceed for registration as the apartment is ready, and thereafter proceed to file the complaint against the builder before the RERA authority seeking compensation under the act. After the complaint is disposed off, the builder has to comply with the order or face execution petition before the same authority.
1. The compensation will be based on the agreement done at time of booking the flat.
2. Not as per RERA act.
Ans:- If the project is registered under RERA only then you can taken some action against the builder.
The compensation may be made by the builder as per the original agreement conditions only.
However if you feel that an injustice is meted out to you, then you may first agree and accept the compensation he pays and after that lodge a complaint against the builder seeking enhancement in the compensation to be paid.
You dont refuse to take the compensation being paid now, because the builder may cite that a a reason and may not pay the same for years after this.
Dear Sir,
You must take the things seriously and get issue a Legal Notice and threaten to initiate proceedings before Consumer Court for necessary damages as per the existing rules prescribed by RERA Act. Then the developer will come under and settle the matter immediately.
Dear Sir,
If a project is delayed, developers are required to pay 10% interest to the buyers on the invested amount as against the Rs 5 to Rs 10 per sq feet penalty contracted in the sales agreement undr RERA and recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the.
It is still not decided by any court or authority.
But you can fight for the same that compensation should be paid from the date of default (without grace period).
further you can refer relevant point of RERA- Rules of your state, because every state has its RERA- rules and draft agreement to sell is mentioned there. No such word “Grace period” in that format.
so, after implication of RERA- no builder can go beyond this format.
e.g. in Punjab RERA- Rules refer para 7.1 of agreement to sell.
it is advisable to file a complaint under section eighteen of RERA ,for seeking delayed interest till possession..As per section 18 of RERA ,incase the builder fails to provide possession within terms of the builder buyer agreement,the allottee can seek delayed interest till possession from the developer
