If the project is not completed on time "dated March 2017", then its breach of contract as per the Indian Contract Act. So, you cam make written complaint online on RERA site of your project city and in Consumer Forum, for interest for delay project for the said amount which you have paid to the Builder.
Property handover delay by over 3 years - Chennai
Agreement: 16th September 2015 Projected Completion Date: March 2017 Over 5 years I was given several assurances and promises made about completing the project and every time Akshaya has failed.Yet I have always paid invoices on time whenever an invoice was sent to-date I have paid close to INR 50 Lakhs. Initial year and a bit I had invoices coming almost every month or at least almost every two months and it was easy to keep of track payments, however once the delays have been happening I had no idea of when to expect an invoice , sometimes there were no invoices for over six months or even a year. This irregular invoicing from Akshaya didn’t allow me to keep track of payments and this must be taken into consideration. Compensation Clause says below: "In the event of any delay in handing over the Schedule C property, the Second Party undertakes to pay a rental compensation to the First party to the tune of Rs.7,500/- [Rupees Seven Thousand Five Hundred Only] per month in the event of a Three Bed Room Apartment as the case for such delayed period provided such delay not being attributable to the reasons mentioned supra and also subject to the First party having effected all their payments on time as stipulated in Annexure I of this Agreement without any default or delay." I have spoken with AGM of Akshaya who said I wont be eligible as there are two delayed payments, I remember at least once the invoice wasn't sent and yet I was chased for payment, on emailing Akshaya they sent me the invoice and I then I made the payment, for this I got evidence in email. I do not recall when the other payment was delayed. I have requested the AGM to send me the details of payments that were delayed, it’s been almost a month and I am still waiting for this email. The property is yet to be completed and is current expected completion is December 2020, Given the property is delayed by over 3 years and almost 4 years, can they really get away from not paying the compensation and also almost 50 Lakhs of my money is stuck with them for years with no interest what are my legal rights?
Asked 4 years ago in Property Law
Religion: Hindu
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28 Answers
You are entitled to compensation for delay in delivery of possession
yiu can file complaint against builder before RERA or consumer forum and seek orders to direct builder to pay you compensation for delay in delivery of possession
- Recently a Consumer Commission has directed a private builder in Kerala to pay Rs 10 lakh to a home buyer for delayed delivery of the house.
- As per rule , the developer/builder is bound to pay compensation for the delay in handing over the possession , or otherwise as mentioned in the agreement with the buyer.
- Further, if 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.
- Since, the builder is refusing for complying the terms of agreement , hence you should send a legal notice after mentioning that due to delay in possession , you are entitled for the compensation as mentioned in the compensation clause of the agreement.
- If the builder fails to response your notice, within a period of 7 days of time, then you can file a complaint with the Consumer Court under the Consumer Protection Act, against the builder for deficiency in service.
- 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.
Buyer cannot be wait indefinitely and entitle to interest on delayed possession. Avoide AGM, you are entitle to compensation as per agreement or refund with interest.
Send legal notice to demand either of it, if not paid, file consumer complaint.
Hi
You have 2 options
Option 1 (In case you wish to retain the flat)
1) The delay of over 3 years by the builder (both for completion of project and handing over of possession) comes under the definition of Negligence and vide Section 14(1)(e) of the Consumer Protection Act, you are eligible to claim compensation , interest and costs of litigation.
2) The delay from Builder side for a period of 3 years is apparently visible and builder cannot blame you for non payment/Delayed payment as in law, it is the duty of builder to proof completion of project phases and raise invoices on clients.
3) You should be aware that vide various judgments of National Consumer Dispute Redressal Commission and Supreme court. ,
a) You are eligible to claim compensation (payment of alternative rents at market rates) in case you have rented alternative apartments either for yourself or Dependent( regardless of Rs7500-/- mentioned in agreement) for all period delays.
and
b) Interest on monies paid by you for delayed period of project completion. Please note interest is generally based on Bank lending rates to industries .
and
c) Litigation costs (at the discretion of State commission
and
d) Any other compensation- Mental harassment etc (subject to evidences).
Since your investment amount is Rs50Lakhs and claim amount may in all probability not exceed Rs25lakhs(total pecuniary value will be about Rs75 Lakhs, you can file a complaint with Tamil Nadu State consumer commission and you can expect a time frame of about 12-18 months for resolution of your grievance.
Option 2:
In case you wish to claim for return of monies paid by you along with interest from the builder, you can file a petition under Section 9 of Insolvency and Bankruptcy Code against the builder at National Company Law Tribunal, Chennai and claim return of monies along with Bank Lending Interest Rates or as per interest rates charged/claimed by the buyer for delayed payments which ever is higher. The time frame for resolution would be anywhere less than 12 months.
Hope this information is useful
1. You have an positive option to file a grievance petition against the Builder /Developer, in the local Consumer Court, for their illegal trade practice, negligence, deficiency, harassment, intimidation, cheating etc.... with proper documentary evidences and you can claim damages /compensation & interest on your investment, and for your physical & mental trauma.
You can seek compensation and refund if you want to cancel the same. If not you can also seek compensation for delayed possession
First serve them with a legal notice and than file a complaint against them in the consumer court
Builder is based in Chennai (Tamil Nadu) ; We are based in Vijayawada (Andhra Pradesh): What is the procedure of serving legal notice and thereafter registering a complaint in consumer court. (Can we do this from Vijayawada or do we need to go chennai ?) And if we take legal actions can the builder cause us more trouble by further deliberately delaying the construction of our flat and hading over the flat to us?
Asked 4 years ago
Legal notice can be issued from Vijaywada
2) you can file complaint against builder in Chennai
3) you can seek court orders to complete construction within stipulated period
If this builder/promoter and this particular project is registered with RERA, approach the concerned RERA Authority in Chennai and seek delayed interest to which you’re entitled in terms of section 18 of the RERA act. Serve a legal notice upon the builder prior to approaching RERA as you’ve already been advised. You’ve a direct remedy before RERA and not the consumer court.
The builder won’t harass you if you chase him to court; that’s becAuse any misadventure on his part will have additional legal consequences
You can send the legal notice via a lawyer from anywhere in India.
For filing a consumer court complaint you need to sign the complaint so the presence is required once
1. IF property is located in Chennai, THEN grievance petition can be filed ONLY in Chennai Consumer Court.
2. You may delegate authority to a chennai based lawyer practicing in Consumer court, to file petition on your behalf and you need not go to Chennai.
3. Once petition is filed in Court, Builder usually comes down to his knees for amicable settlement. IF he delays construction, THEN he becomes liable for more compensation /damages /interest for the further delay period.
In Which city project belongs you can make complaints in that particular city RERA office and Consumer court both are online.
The builders will play such fraudulent acts on the buyers to avoid payment of penalty for the delay in completion of the project or construction of the flat.
You can claim compensation as mentioned in the clause you have furnished here to the company.
If they still avoid to pay the amount as per the agreed clause you can issue a legal notice demanding the same.
After that you can drag the builder to the consumer forum for releif and compensation for the hardships and mental agony you suffered due to this reluctant and casual attitude of the builder.
You can issue a legal notice from your place itself.
However you may have to file the complaint in the jurisdiction where the property situate.
Due to your legal action against the builder, he may be provoked and he may cause you trouble by delaying the project further more, you can approach RERA for relief ion this regard.
You can file the complaint at the place where cause of action arises where the builder has his office. No builder can't trouble you more
Dear Sir,
1. You can claim compensation for the delay. These tactics of the builder to blame you, won't stand before the court.
2. You can either file a consumer complaint before the State Consumer Forum or a complaint before Real Estate Regulatory Authority (RERA) Tribunal in Chennai.
3. I would recommend you to engage the services of an advocate in Chennai and file a complaint before the RERA Tribunal. You cannot file in Vijaywada.
4. There is no bar to approaching a Consumer Forum but since RERA is a special Act and particularly designed to protect the interest of home buyers, it would be a better option for you. Average time to get relief before RERA Tribunal is 2 years, whereas in a consumer forum it may take about 5 years.
5. Legal Notice can be served through any advocate via registered post and/or email. It should be drafted meticulously with all the details. If you are sending it physically, do not forget to retain a copy for yourself and the postal/courier receipt.
5. The builder won't cause more trouble only because you take legal actions. If he delays further, he'll have to pay more compensation.
Hope this answer helps.
Best wishes.
- A legal notice can be issued from any place of India , but the complaint will be filed , where the property is based .
- No builder cannot create trouble , if the complaint will be filed , and due to court pressure the builder will complete the project soon.
You need not to go to chennai to serve the legal notice , your lawyer can do it
.
Your lawyer can even file your case but at the time of admission you have to appear before the court.
Regards
Legal notice will send by advocate. Consumer complain will file where flat exists or where builder have office.
You can initiate recovery process. As much builder will delay, you will be compensated more. Also complain to RERA.
1. I have read the compensation clause which is reproduced by you in your query
2. it seems the dates on which the payments are to be made to the builder are given in Annexure 1 to the agreement itself
3. if that is so, then you should not have waited for the builder to send you the invoice
4. the payment to be made by you is not conditional upon the builder sending an invoice to you
5. you were required to make the payments as per the agreed schedule given in Annexure 1 of the agreement
6. even if there was a delay in handover of possession as per the agreement and the payment became due by you to the builder, you could make that payment 'under protest' and 'without prejudice' to your right to claim compensation for delay
7. however as there appears to be some delay on your side, it does not mean that the builder can go scot free
8. at the highest the builder will not pay you the agreed rental compensation as agreed to be paid by him for the period beyond the stipulated date of completion of the project
9. that would not absolve him of his liability to pay you interest for the period during which the possession has been delayed till the date the actual possession is given to you
10. you can either file a consumer court complaint or a RERA complaint
11. the complaint has to be filed where the property is situated. It need not be filed in the Court either where you reside or where the builder has office
12. so you can file a RERA complaint before the Tamil Nadu RERA Authority or before the consumer court having jurisdiction over the property
13. just because you file a complaint, either consumer or RERA, does not mean that the builder will harass you further. In fact he will be answerable for his delay. If you do not take action then he will have more wings to default further and delay the handover of possession even beyond the extended date of possession
14. so lodge the complaint immediately. These builders do not respond to legal notices. Even if they do, they only give evasive replies. So you can directly file a complaint before any of the 2 courts as above without first issuing any legal notice
it is absolutely your right to seek compensation, you can file complaint against builder before rera or in consumer court
you can issue a legal notice through any local lawyer but you have to file complaint against builder in chennai.
1. File a complaint case before the local District Consumer Dispute Redressal Commission ( it is no longer called forum from yesterday as per Govt. notification) against the builder alleging deficiency in service and unfair business practice claiming the amount towards rent prevailing in similar area for similar type of flats. (Not rs.7,500/- as mentioned by the builder) for last around 4 years with interest, damage for your mental trauma with interest and cost.
2. Since it is a practice followed by him to send Invoice to you for seeking payment/EMIs, you can not be penalised for his lapses in failing to send you the Invoices.
1. If the Builder has an office at Vijayawada and the cause of action arose thereat, then you can file the consumer Complaint Case at Vijayawada.
2. Otherwise you shall have to file the said case at Chennai.
1. No they cannot get away from paying compensation to you for delay of possession.
2. You should serve them a legal notice through your advocate for compensation as mentioned in agreement.
3. If they refuse to compensate on monthly basis then you cn file suit for compensation in consumer forum or civil court under breach of contract.
You should file a complaint against the builder in the RERA tribunal immediately as you have been harassed enough by the builder.
Don't go to the consumer forum. RERA tribunal is a more effective way as they dispose the cases expeditiously. Find out whwre tge RERA tribunal is located and file a complaint there.