My builder is charging me a delayed payment interest of Rs 7675 on Rs 4,75,628 which is the registration fee of my recently finished flat. I have been avoiding going to the bank (from where I've taken my home loan) to get the cheque due to lockdown. They've charged me interest even for the lockdown days! My question is: a) Is the registration process one with a deadline? b) How can a builder charge me an interest for something that is between me and the authorities? Please help me with this information
Registration has to be done within period of 4 months of execution of sale deed
2) if it is not done in 4 months then penalty is imposed and registration can be done within further period of 4 months
3) ask builder to clarify on what basis interest has been charged
4) presence of builder is necessary for registration purposes
1. See if in agreement definite timeline or date of registration is mentioned then it is with deadline though due to pandemic when nation was under lockdown you may seek waiver of same.If he fail you may pay and later file a consumer complaint for same.
2. Builder shall register you flat it is not between and authorities .
Penal fees are charged by registration office for delay on registration.
If the cause of delay attributes to you, then you shall be liable to to pay it otherwise not.
Further delay for lock down shall not attract any penal fees as per govt instruction issued amid Covid-19 pandemic .
1. In lockdown the same needs to be waived.
2. You can get it revoked as its illegal
1. No one can impose penalty in lockdown time, more so , when the act is prohibited during this time.
2. So refuse to make this payment and if he doesn't budge then consider filing case before the consumer forum.
Kindly check the sale deed and sale brochure of Builder, In that if the terms and conditions are not mentioned than he could not charge any interest.
Plus in after February 2020 till date he can't charge interest in the COVID 19 lock down period. As per govt norms bank are also not charging interest.
1. The penalty should not have been imposed in the first place due to lockdown and pandemic.
2. Send a notice to the builder and ask him on what basis he has levied the penal interest.
A. Yes registration process is somehow a time bound thing.
B. It is not just between you and authorities, builder is the seller and have a main role to play. Interest for lockdown period is not exempted by the authorities.
Hi, no interest can be made on the stamp duty charges as these are fixed charges of the government...
Once the builder intimates the date for registration, it is your duty to intimate your bank and proceed for registration. However due to the lockdown, banks were closed and so was the registration. Due to this lockdown, the builder cannot charge you interest for something that was beyond your control, and you are also not liable to pay any delayed interest to the builder during the period of lockdown. However now since both banks and registration offices are working, if you continue to delay or postpone the registration, builder is right in charging interest for the delay caused by you.
Inform the builder that due to lockdown you could not proceed for registration, and therefore you are not liable to pay any delayed interest on the sum of Rs.4,75,628/-, if he persists, then lodge a complaint against him with the police. They will resolve this issue.
Dear Sir,
You are suggested to go strongly against the builder because the no interest is required to given for lockdown period and also authorities office were close during lockdown and no registration was going on.
Builder can charge interest on delayed payment as per agreement but not on delay in registration that also due to force majeure. And anyway, registrar office was closed during lock down.
Complain to RERA. No amount payable and if builder refuse to register. File FIR of cheating and RERA.
- The Supreme Court , In order to remove the difficulties , and to ensure that lawyers/ litigants do not have to come physically to file such proceedings in respective Courts/ tribunals across the country, including Supreme Court, it was ordered by the Apex Court in the Suo Motu Writ Petition (Civil) No(S). 3/2020 that period of limitation in all such proceedings, irrespective of the limitation prescribed under General or Special Laws, whether condonable or not shall stand extended w.e.f. March 15, 2020 till further order/s are made by the Hon’ble Supreme Court in this regard. It was also declared that the said order is a binding order within the meaning of Article 141 on all courts/ tribunals and authorities.
a) It depends on the booking agreement dully signed by you , whether there is a clause for delay or not.
- However, due to lockdown , all the agreements /registration process shall be extended for the period of lockdown.
- Since, the delay was caused due to lockdown ,hence the builder cannot charge any interest from you.
b) Builder is wrong to charge the interest in the name of registration charge , you can send a complaint before the RERA.
Hi
1) Registration and stamp duty is payable by you to the government and builder cannot charge any interest on the same. More so, in the lock down , even government offices were closed from March 23 to May 18 and as such no interest can be charged for lock down days.
2) So, you need to write to builder to reverse the interest charges on registration and stamp duty fee.
3) Registration and stamp duty can be done anytime and there is no time limit for the same provided you have not taken possession of the flat. If you have taken possession of flat, you should do the registration within 90 days. again there is no penalty for delayed registration in this case also.
Hope this information is useful.
a) Yes it is time bound. Registration has to be done within 4 months from execution of Sale Deed, for any reason it is delayed, it can be extended by further 4 months on paying penalty.
b) Builder cannot charge interest for delay, since due to lock down and pandemic all activities have come to standstill.
You can issue notice to Builder seeking explanation as to how he charged interest for delay in registration.
No this charge is completely illegal. You should refuse to pay and if they insist you can approach the consumer forum.
a. What is deadline?
If the builder has paid for your registration then it becomes your duty to pay him back.
You are not able to get the cheque from bank is a flimsy excuse.
If at all you wanted to settle the amount you could have somehow managed to pay the same.
b. if the builder has paid for your registration stamp duty then it is your liability to return the same duly within the stipulated time, if not there is no legal infirmity for the builder to demand penal interest for the period of delay.
You can file civil suit before the Appropriate court seeking for specific performance to execute the sale deed in favour of you without making Interest Payment .
Yes if registration offices are open and date is mentioned in agreement for sale.
Builder can charge interest if he had already paid registration fees.
This is pure harassment. Dont give any interest to the builder. Instead see what he does and if he does not cooperate file a complaint against him in the RERA TRIBUNAL.
