What are clauses in your agreement
2) if there a clause that interest has to be paid for delayed payment builder can charge you interest for delay in making payment
Charging interest on delayed payment
Dear sir Builder sent final demand for ₹4200000.0 on 04 Mar 20 with last pay date 18 Mar20. Lockdown started from 25 Mar20. My application for departmental loan and to pay my share of remaining10%and bank share of remains 60% could not be processed due Lockdown. On 20May received reminder with 65000/-as interest @9.5% and waiver of interest if paid by 31May 20.I requested waiver of interest and asked to extend pay date to 30Jun which he said to out up to management for consideration. I paid on 17Jun and bank paid on 30Jun except interest ammount of 65000/-. On16Jul builder sent reminder2 asking to pay 187000/-as interest including 18%GST on interest after having adjusted all our payments. Sir, am I required to pay interest with gst as asked by builder? What options I have? As per agreement 10%of amount will be deducted if I cancel the agreement. Being Defence personal this interest amount is huge which I can't bear. Request your advice. Thanks
Asked 4 years ago in Property Law
Religion: Hindu
15 Answers
1. Well, in normal circumstances both the parties are to be bound by its terms and conditions.
2. There is no government circular in place which forces the builder to extend the date of payment. However most of the reputed builders are giving a leeway to the buyers to paying money in a deferred manner.
3. However this can not be forced and imposed upon the builder. So your only option is to request the builder.
4. To find out the whether the demand of the builder is lawful or can be avoided the sale agreement is to be perused carefully. You can share that one with me.
1. Legally speaking the entire tenure of Govt. declared Lock-Down period shall be exempted for delay in all types of payment and no interest would be leviable on same by builder. This would not have been applicable IF Govt. had not ordered the lock-down.
2. 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 don’t have to pay interest since all this while the lockdown was in operation. At best, you’re liable to pay interest for a week, i.e., from March 19th to 25th. From 23/25th March, the lockdown started and the process of your loan finalisation and disbursement got delayed due to no fault of yours but due the restrictions/lockdown that was in place which otherwise hindered the whole process.
Send a strong reply to him and enumerate everything that i have stated above in your reply.
You can make a complaint in the RERA office of particular city that if project is not completed he can't ask for the interest without the flat is in a ready possession. If the project is in process he can ask for installment and understand the current situation, if he has human resources then ask him to to contact with the Bank and get reimbursement cheque process work expedite.
If you can cancel the agreement 10% will get deducted form advance amount paid by you.
Due to COVID-19 and lockdown the central Government and RBI have been directing all concerned and Banks to grant exemption from interest and EMI by way of moratorium to customers.
You may take the service of lawyer to issue legal notice for the clarification on interest and directions of moratorium policy of RBI and Central Government.
Next you may move to RERA for REDRESSAL of your grievances against injustice being caused to you on the issue of interest during lockdown and COVID-19 period which is Worldwide issue.
If it's not your fault then you will receive booking amount too. Otherwise booking amount will be deducted
The builder's demands are justified since he had been on the job even during the lock down period.
The interest may be exorbitant, which you may request him to reduce it to a great extent explaining the current pandemic situation.
You have the options to approach RERA for this where you can get a relief of reduced percentage of refund of booking amount.
- As per the direction of the Government of India ,and the Supreme Court , the dates of all the agreement and cases /contract has been extended for the period of lockdown.
- Hence, the said builder cannot force you to pay the interest arising due to lockdown.
- You should issue a legal notice to the said builder for waiving the said amount , and if refused then you can file a complaint before the Consumer forum
- Further, there is no guidelines laid down by the government to forfeit the booking amount for the cancellation, and the deduction is done at the builder’s discretion.
- Hence, legally, the builder cannot deduct any money out of the advance payment you have made for the booking till the time; a builder-buyer agreement is made and registered with the sub-registrar.
- Further, A builder-buyer agreement is not created until the buyer pays at least 10 per cent of the property value.
- Further, as per Real Estate Regulation Act (RERA), home-buyers can cancel allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. The builder is bound by law to return the money collected from buyers within 45 days, after deducting the booking amount.
- Hence, if you have already paid 10 percent of the flat value, and the said agreement signed by you , is not registered in the office of the Registrar , then you are liable to get full amount refund paid by you ,even there is a clause present in the agreement for not refunding , and if the said agreement is registered , then builder has right to deduct booking amount from the paid amount.
- If, builder not refunding the same ,then you should lodge your complaint before the Consumer court , and thereby prayed for the refund of paid amount with interest.
First send them a legal notice and than file a complaint against them in the consumer court
NO. Bank failed to process loan on time due to lock down (force majeure) and construction was also stopped in that period. Therefore, builder cannot charge interest.
Decline to pay interest or obtain stay from consumer court. And if builder do not agree, can cancel the booking and cancellation is due to builder so you are entitle to full refund with interest.
Decline builder demand as not maintainable cause of force majeure. So either full refund with interest or no interest will be paid.
Dear Sir,
You are suggested to submit written application for the said waiver of charges and if not done by him, serve a legal notice for the same.
builder is within his rights to ask for interest on late payments and he can legally ask for that anytime, however u should negotiate with him and point out to him his delay and thereby proving his intention to cash on the opportunity. Try to get it waived off.
1. If interest on delayed payment is mentioned in your booking agreement then you have to pay interest on delayed payment.
2. You can request builder for waiver of interest on ground that payment was delayed only due to lockdown.
3. If there is clause of forced Majeure event in your contract then you can demand waiver on ground of forced Majeure clause.
You cannot be compelled to pay the late payment fee. Refuse the same and file a complaint in the consumer forum in case he is not ready to waive off the fee.
