Hello sir,after the enactment of RERA act , the builder and buyer both in terms of default on their part respectively,shall be liable to pay or receive compensation at the interest rate of 10.25 percent per annum ,as the RERA act has an overriding effect over the terms of the buyer agreement ...The interest shall be applicable from the period of delay (including grace period )till offer of possession and if buyer defaults on payment then from the due date of instalment/Payment till actual realization
Return of my Principal amount with interest due to big delay in Possession offer by the Builder
Please give me Consultancy required for return of my Principal amount with interest due to big Delay in Possession offer by the Builder as a result I don`t want the flat but want my paid amount back with max. possible compensation.The brief version of the matter is as follows: I purchased a flat no. C-403 in Princess Park Housing project, Sector-86,Faridabad,Haryana from the builder ‘BPTP Limited’. I purchased this flat as second buyer on 26-9-2007 from first Buyer Mr. Prabhjot Singh Ahuja. This flat was booked by first buyer on [deleted] and it was allotted to first Buyer on [deleted]. Though I did not get the possession letter from you but as per BPTP it was offered on [deleted] though actually was given many months later than this when I enquired from many other purchasers. The builder ‘BPTP Limited’ delayed the project beyond the maximum given time of 3.5 years for possession which included additional 6 months grace period though actual time given was only 3 years. The builder ‘BPTP Limited’ delayed the project 2.75 years as per its own data while actually this project was delayed by more than 3 years. Even when the possession was offered , the builder increased the price in a big way from Rs. 2567655 to Rs. 3030740.91.In this situation I did not find any point in taking the possession of the flat. So, I did not take possession. The Builder is charging 15% compound interest rate for delayed payment as can be seen in the documents sent by it. This condition is mentioned in the Tripartite agreement document too. So, as now I don`t want to take possession so, I want to ask The Builder that as per natural justice I should also be given 15% compound interest along with the principal amount plus some additional compensation for causing mental harassment and useless efforts. So, I want to know 1. What the options are available with me? 2. Which option would be more advantageous? 3. What interest rate may I get on my principal amount? 4. Since when this interest will be applicable and by which date/period will it be applicable? Regards, Mahesh Kumar, [deleted]
Asked 4 years ago in Property Law
Religion: Hindu
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14 Answers
Will Provisions of Rera act will be applicable in this case as this matter started in 2007 while Rera act act came much later than this. This builder BPTP is a quite big and well known Builder.
Asked 4 years ago
File complaint against builder before RERA or consumer forum and seek orders to direct builder to refund your money with interest on account of delay in delivery of possession
2) if builder is charging 15 per cent for delayed payment he should also pay same rate if interest
3) agreement appears to be arbitrary, one sided
4) builder cannot arbitrary increase sale price without consent of flat owners
Hello,
Immediately send him a demand notice and file a case in consumer forum.
Regards
You can file case against builder being beneficiary of the said flat. You need to file complaint before consumer court for deficiency of service
- Yes, you can cancel the agreement for purchasing the said flat , and the builder is bound to refund the entire amount with 10% interest due to delay in possession of the flat.
- Firstly you should send a demand notice after mentioning that due to delay in possession, you are cancelling the agreement, and thereby ask him to refund the entire amount paid by you with interest.
- If the builder fails to response your notice, and not refund the amount within a period of 7 days of time , then you should file a complaint with the Consumer Court under the Consumer Protection Act, against the builder for deficiency in service, or you can lodge your complaint with RERA as well.
- You can also claim compensation for mental agony and harassment due to delay in possession of the flat by the builder in the said consumer complaint.
- As per law, the builder is bound to refund the entire amount with interest due his fault.
1. Two options available one is you have to make complaint in rera and other is that you have to make complaint in consumer commission of the state where the property is.
2. Since you are looking for the refund of the amount paid this state Commission will be better option where you can claim the compensation legal charges and interest on the amount paid to the Builder and you can ask the same percentage of interest as per tripartite agreement or builder buyer agreement.
in case you complaint in real estate regulatory authority and you get order in your favour the Builder builder finally moved to really state Tribunal which will take additional time.
3. There are presidents where the interest rate has been allowed which has been mentioned in in builder buyer agreement if it is mentioned 15% in builder buyer agreement then you will be allowed to get interest at the same rate however in case of real estate regulatory authority the interested will be allowed mclr plus one present and the amount paid but there you will have probably no option for claiming the compensation for mental agony and legal charges normally not allowed.
4. interest will be applicable from the day of cause of action and will be charged till the date payment is made.
If this is ongoing project then the Builder have the liability to register this project with rera and upload complete information about the project in case of non registration of the project there is a penalty clause at the Builder. You may check project detail on rera website.
please rare this answer if you like it
- You can file the complaint to RERA if the matter is not getting sought out amicably.
- RERA is very well applicable to earlier projects too and there is no bar to the previous project act.
- The interest rate shall be calculated as per BBA and from the clause of the completion grace period.
- You may feel free to get in touch if required to be filed at RERA.
Regards
Vivek Arya
You should file a case in the rera tribunal. The tribunal will give you adequate compensation ie interest. Interest shall be applicable since the date when the apartment becane due.
Yea the provisions of the rera act are applicable.
The builder increased the amount and has also defaulted on his deadline. He taking advantage of his own wrong. Therefore file a case in the rera tribunal immediately. You shall receive a substantial amount as interest, don't worry.
Dear querist,
I will answer to your query chronological manner as asked by you:
1. The legal recourse available with you as the building can not be registered under RERA Act therefore, the best possible option for you is to file a complaint in a consumer forum.
2. This is the best advantageous option for you as it is a fast, remedial nature option. as per my previous experiences in the similar cases.
3. You can claim 24% P.a but the best interest will be 18% which will also include the pendente lite.
4. It will be applicable from the date there is delaying and deficiency in service which we will be figuring out in the complaint.
Hopes this solves your query. You can contact me for dealing with your matter expeditiously.
Regards,
YUGANSHU SHARMA
ADVOCATE
Buyer cannot be made to wait indefinite for delivery of possession and entitle to refund with interest and compensation.
RERA/Consumer Court/FIR of cheating and criminal breach of trust. Interest @ 6% to 12 %.
Interest levied from date of payment. Under construction project also register with RERA.
1. You can file case before consumer forum or RERA against builder for delay in possession and increasing the rate of plat by inappropriate amount.
2. You may get 12% simple interest on principal along with compensation for harassment.
3. From date of possession which as offered at time of agreement.
The commission directed the builder to pay compensation at the rate of 6% per year on the total deposit for the delayed period even after handing over possession. In case of non-delivery of flat within the deadline prescribed by commission, NCDRC said the builder will have to refund the entire amount with 10% interest.
In a relief to lakhs of aggrieved home buyers who are forced to wait for the possession of their flats for years the apex consumer commission has quantified a time period of one year for delayed projects beyond which investors can claim refund from builders.
Judicial forum ..including supreme court and consumer courts held that home buyers cannot be made to wait indefinitely, but it was not clarified when refund can be claimed in case of delay..
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You can approach ERA for releif even if the builder has not registered with RERA, let them say that it is not under their jurisdiction, then you can approach consumer forum