You can file complaint against builder before consumer forum and seek orders to direct builder to pay you compensation for delay in delivery of possession
2) also claim litigation costs and compensation for mental undergone by yiu
Apartment construction delay penalty
Dear sir/madam, Below is the timeline of my apartment book - ready to handover journey: 1. Apartment booking: 19th October 2014 2. Loan approval: March 2015 3. Regular EMI start date: October 2016 4. Completion date mentioned in agreement: June 2017 5. Completion date after grace period mentioned in agreement: December 2017 6. Actual call for inspection: September 2019 7. Date of all snags (~150) were fixed: February 2020 This is the exact legal text from the sale and construction agreements: 1. Sale Agreement: Delay on the part of Vendor in handing over possession In the event of there being delay in the Completion Date and expiry of the grace period, and in the event of the Purchaser not being in default of any of the terms of this Agreement and/or the Construction Agreement, including default in payment of any amounts of the Developer: The Developer shall pay interest at the rate of 2% per month on the Sale Agreement amount (or portion thereof as may have been paid by the Purchaser till the expiry of the grace period as stipulated herein), after expiry of the grace period from the agreed Completion Date, till the date of actual handing over of the Schedule C Property to the Purchaser. 2. Construction Agreement: Delay on the part of the Contractor in completing construction In the event of there being delay in the Completion Date and expiry of the grace period as stipulated herein, and in the event of the Purchaser not being in default of any of the terms of the Construction Agreement and/or the Sale Agreement, including default in payment of any amounts to the Contractor: The Contractor shall pay interest at the rate of 2% per month on the Construction Agreement amount (or portion thereof as may have been paid by the Purchaser till the expiry of the grace period as stipulated herein), after expiry of the grace period from the agreed Completion Date, till the date of actual handing over of the Schedule C Property to the Purchaser As per above, I am entitled for 2% of the sale+construction amount that was paid by me till the expiry of grace period, and it comes to ~ Rs 26,00,000 . I have already paid a huge amount of money as bank interest because of the delay. But builder is ready to pay only rental compensation * number of months = ~ Rs 5,00,000 Will I be able to recover the money if I file a case against the builder? If yes, how long might it take to get the case settled? Thanks in advance.
Asked 6 years ago in Property Law
Religion: Hindu
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7 Answers
File consumer complaint for delayed possession and compensation. You are entitle to compensation @2% on paid amount from builder.
This may not a tripartite agreement where contractor also sign and agreed to compensate. 2% for delayed construction, builder can claim form contractor not you.
If Contractor is employee of builder than you are entitle to 2% from contractor also. Case takes time, do first collect amount payign by builder. than file case to recover surplus.
You can file a complaint before rera or consumer court in the same and get the compensation and interest
You have an option to file a case before consumer court and demand refunds with interest amounts.....
Case shall be filed in the basis of pecuniary jurisdiction
If it crosses Rs 1 crore, it can be filed before National Commission.
If it is between 20 lakhs to one crore then state commission
Less than 20 lakhs then district forum.
Yes you can file case against the Builder for delay / deficiency in service before the Consumer Forum.
Issue notice to the Builder, calling him to pay the damages for delay completing / charges for mental tension suffered by you.
Further you can seek order from Forum to direct the Builder to pay compensation and damages due to failure of his obligations as per T&C of Sale & Construction Agreements
Since the conditions of the agreement is very clear that the builder has to pay the penalty at the rate mentioned in the sale agreement, you can very well file a case before the jurisdictional consumer forum for a quicker relief
The case may run for at least one year.
The delay compensation agreed to be paid by the builder from the expiry of the grace period upto the date of handing over or completion of the apartment, the builder has undertaken to pay compensation @ 2% pm and not monthly rents as is being proposed by the builder.
Hence this case qualifies for filing a consumer complaint against the builder either before the consumer forum or before the RERA authority.
Complaint before the consumer forum would generally take upto 2 years, and before the RERA authority upto 6 months.
You will WIN the case against the builder before both the above forums.
However my suggestion to you would be to file the complaint before the consumer forum, as the recovery is much faster compared to the recovery from the RERA authority.
