• Interest on delayed payment and delay in possession

I had booked a flat in Crossing Republik in 2007 with a reputed builder. Possession of the same I got now. Per the pre possession letter offered by builder he is charging Interest on Delay payment from me to the tune of 36% PA. I gave advance payment of 10% within the stipulated time and balance 85% was paid on loan disbursement.
Flat and project is delayed by 8 years. Possession of the same was due in June 2010. Builder is ready to give me penalty provided I pay delay payment charges.All correspondence from the builder thereafter(7 Plus years to be precise) had never indicated any outstanding payment on account of interest or otherwise.  It was surprising for me to see interest being charged while I had made all payments as per already agreed terms. I am now being penalized for no fault of mine except the fact that I had not taken the same in writing.  I don't see anything in the contract which says the builder has to wait till completion to ask for any interest in delay payment from the buyer?
Where in builder is just paying Rs 5 per sqft penalty for the delay on his part and charging 36%from me.

Secondly builder are charging money in the name of Labur Welfare charges @ Rs 20 persqft and water connection charges from individual flat owners. Are these not part of there duties to provided the same?

What option i have as an buyer against this unlawful practice where my dream home is delayed by 5 years and i have to pay for delay payment where in i paid 95% of the flat cost within 3 months of booking. Any recent verdict which can be helpful .

Asked 3 years ago in Property Law from Ghaziabad, Uttar Pradesh
Religion: Hindu
1. Do not worry, these are standard tactics of builder which are hardly acknowledged by court. 
2. So in other words the builder will be liable for penalty put of delay and at the same time you will not be held accountable for penalty at such exorbitant rates.
3. The other charges does not appear to be legally tenable.
4. So get relief all these accounts you have to move to consumer forum wherein you can ask for penalty and compensation and damages for the acts of the builder.
Given the ill-repute of builders all over the country you would meet with success in no time.
Devajyoti Barman
Advocate, Kolkata
12816 Answers
166 Consultations

5.0 on 5.0

1. The builder was not obligated under any law to inform you about the interest on delay payment in any of his correspondences with you. The provision of interest on the delay in payment, if mentioned in the agreement or brochure, is a sufficient notice to you.

2. If you have made all the payments in time then refuse to pay the interest.

3. The interest on delay in payment can be recovered after the completion.

4. You cannot be charges for Labour Welfare Charges except if this has been provided in the agreement.

5. To repel the unreasonable demands of the builder and to claim the penalty which the builder is liable to pay you should issue a lawyer's notice to the builder.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

1) you can file complaint against builder for unfair trade practice before consumer forum and seek interest for delay in delivery of possession 

2) in addition you can challenge demand for late payment charges as payment had been made by you on time . 

3) in the event there was delay In payment by you builder should have immediately raised demand and not waited for so many years 

4) also claim compensation for mental torture undergone by you 
Ajay Sethi
Advocate, Mumbai
45467 Answers
2672 Consultations

5.0 on 5.0

1. File a consumer complaint case before your local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming direction upon the builder to complete the project within 6 months, pay rent applicable for similar type of flats at similar place with arrears of delay, damage and cost,

2. It is a fit case to win and cases before  Consumer Forum  are decided faster than regular civil courts.
Krishna Kishore Ganguly
Advocate, Kolkata
18442 Answers
448 Consultations

5.0 on 5.0

You have a strong case for compensation as well to claim damages for mental agony for the unjustified demand of penalty claimed by the builder due to delayed payment.  You can also sue him seeking compensation for delayed construction.
The money demanded for labor welfare@Rs. 20 per sq. feet or water connection is unheard of, it is a part of the construction cost, he cannot demand charges for each and every service provided by him, he has collected the charges for everything through sale consideration itself  as per the conditions of agreement. You can refer to the sale agreement clauses. 
T Kalaiselvan
Advocate, Vellore
35621 Answers
386 Consultations

5.0 on 5.0

A. Whatever the amount paid for a hostel, lodging,rented house and apartment can be a strong proof over money paid to a relative as 'rent'," you can recover this amount from the builder by dint of delay of delivery possession. 

B. File a complaint before the consumer forum under the deficiency in the service to give direction to the builder to complete the construction or claim damages, interest  over the principal amount and compensation for the delay of delivery of possession by submitting all material records.

C. Damages can be classified into two broad heads: Indirect losses and direct losses. Direct loss is the money lost due to the delay in getting house possession. Indirect losses cannot be quantified and usually arise out of trauma.

D. Finally, don't agree for Rs.5/- per sq.ft and you can claim whatever got the loss,injury and mental agony from the builder activities. 
B.T. Ravi
Advocate, Bangalore
833 Answers
56 Consultations

5.0 on 5.0

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