I purchased a semi-furnished flat in 2013. Registration is done in my name, residing in the same flat since 2014, paying property tax on time, electric connection is transferred to my name. However, the project is not yet completed, builder has given partial occupancy certificate, car parking not allotted till now. I made all payment from my side in 2016. Rs 165750/- amount is due for release from Bank, the builder is holding SALE DEED document and now asking penalty @ 12%, total Rs 228,526/- from me to releae SALE DEED. Kindly guide me how to get rid of this unreasonable demand.
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
Then no need to pay extra penalty amount to builder for such types of demand when you had paid all money. You can tell builder this is not your fault that bank has not release payment, provide the bank reason to him.
Otherwise yo may make written complaint in RERA and in consumer Forum of your city.
This is ridiculous! File a case in the consumer forum immediately for deficiency in services. He cannot demand penalty when he himself is wrong.
File a consumer complaint against the builder immediately and seek interim relief from the forum. You can claim compensation and other reliefs
Please issue legal notice to Builder for the release of sale deed otherwise take action against him under Consumer Protection Act in deficiency of service as per the agreement entered into between you and the Builder.
Since full payment has not been released by bank the builder would be justified in demanding interest on delayed payment
2) there must be clause in your agreement for delayed payment interest would be charged
3) kindly clarify what is the reason for failure of bank to release balance payment
This is a gross instance of deficiency of service and unfair trade practice.
Therefore file a case before the consumer forum wherein you would get order of registration of sale deed apart from enough damages and compensation.
1. IF Sale Deed /Agreement has clauses of Interest or Penalty, ONLY THEN builder is entitled to recover Interest or Penalty, for late /pending payment and other charges. However IF building OC is not obtained THEN builder is legally not entitled to Interest or Penalty or any other charges, whatsoever.
2. However, builder is legally not entitled to hold-back Sale Deed for any reason.
3. 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.
File a specific performance suit against the builder for releasing your sale deed
File FIR to recover sale deed. Since OC has not yet issued, builder is at continuous default and holding sale deed forcefully and demanding money is extortion. Send legal notice for OC, allotment of car parking and release of sale deed, if not done file consumer complaint.
Since builder has delayed in OC, car parking, no penalty payable on your side.
What is the reason that the builder is demanding this huge amount as penalty?
Was there any delay in payment to the builder.
If the bank is delayed the payment, you probe the reasons.
If the delay in disbursement of the payment by bank was due to the builder then you collect evidence and issue a legal notice refuting his charges demanding penalty for the delayed payments.
You can demand the registered title documents with a warning that he will be dragged to consumer forum seeking compensation for the deficiency in service and also for release of the sale deed.
The information what you have furnished is incomplete, you might have added the reason for the builder's demand of this penalty to enable us to render you more proper opinion.
- If the Sale deed is with the builder , then on what ground the bank will release the amount of sanctioned loan.
- Further , both the parties are bond to comply the terms & clauses of the registered agreement at the time of booking the said flat .
- If the said agreement is silent on the matter of interest , then builder cannot charge any interest and withhold the Sale Deed.
- You can issue a legal notice to the builder and thereby mention that due to their fault the bank has not release the amount , and ask the sale deed .
- If refused , then file a complaint before the Consumer Forum on the ground of deficiency of services and above said grounds.
I have two agreement. A) Tripartie agreement - As per this builder agrees to execute and register in favor of borrower, deliver the original sale deed directly to the bank. In this context the borrower irrevocably authorize the builder to deliver the original sale deed directly to bank. On receipt of SD bank will call borrower and deposit of title deeds in favour of the bank by meeting all expenses on a/c of stamp duty and registration as applicable. B) Sale agreement - Builder is eligible to charge interest @ 24% PA after 1 month grace period. Payment term: Balance to be paid in installments 1. Upon completion 9th floor slab = 80%- Released, 2. Upon completion of flooring = 10% 3. At time of registration of sale deed and handing over possession = 10%.- Released 13 % The 7% amount not released from Bank - Because Now builder has not completed the project. Not provided completion certificate, Only Partial-Occupancy certificate provided, Car parking allotment certificate not handed over, piped gas connection not provided, Club house not operational. In 2017 all payment were made except 7%, which builder did not submit SALE DEED to bank and never followed with me. I advised bank to release the remnant amount and also cited that we do not have CC & OC. I realized this when I asked bank to furnish LIST OF DOCUMENT WITH THEM. Because I want to shift my loan to other bank. The bank offiical called me over phone and advising to speak with builder to submit DEMAND NOTICE, OC, CC etc. When approached the builder has given me new DEMAND NOTICE with penalty. Kindly advise who is at fault. Note: The B wing is still under construction for last 7 years, no amenaties, no play area for kids, lot of hardship due to WORK IN PROGRESS since we took possession.
- You can lodge your complaint against the builder under the submissions given by you.
1)it is necessary to peruse sale deed to advice
2) if there was clause in contract that balance payment would be delivered on obtaining OC then builder cannot charge you interest for delay in making payment
3) if it provides only on delivery of possession then builder can charge you interest for failure to make payment after taking possession
4) however builder cannot deliver possession until OC is issued
5) file complaint against builder before RERA or consumer forum and seek orders to direct builder to waive interest and hand over original sale deed
If You have asked builder in past that need to submit sale deed to bank then its Builder's fault on account of not submitting sale deed, OC and CC certificate and not completing the "b" wing as per the layout plan sanction.
Plus kindly check your sale deed what exactly terms and conditions are made that builder is eligible to charge 24% interest rate on what grounds.
You have a good case builder is ar fault
Builder is at fault.
Please approach Consumer Forum for REDRESSAL OF YOUR GRIEVANCES as Consumer.
Second step is to file suit for the permanent injunction and declaration of title over the property under section 34 and 38 of Specific Relief Act against Builder for performance of specific contracts as per both the agreement entered into amongst the parties.
If the builder has provided partial OC and also registered the property to your name and delivered possession, then it becomes your duty to follow it up with the bank and the builder about the dues and the completion of formalities with the bank with reference to the deposit of title deeds.
You cannot blame others for your failure to ensure the follow up of the procedures.
The builder would claim rights to charge the interest as penalty for the delayed payment, you have no answer.
the bank is just a lender.
The bank is not interested in what problems you face.
It will follow the banking rules and regulations in this regard.
If you commit default in loan repayment then the bank will take action as per law for recovery.
The builder will remain silent until you go and ask him about the other pending issues.
If the builder was reluctant to answer to your queries regarding the pending works and provision of amenities, you should have taken legal action against the builder by dragging him to consumer forum
You are waking up on all such issues only when the builder is demanding the penalty, otherwise you would not have taken care of this even now.
Even now, citing all the lacuna on the part of builder you issue a legal notice demanding him to make alright all the deficiencies including issue of OC and inform him that he is not eligible for any penalty because he has not made the demand notice to the bank when it was due, the current demand notice is not legally maintainable as he had not intimated about this earlier, hence his intentions are malafide to grab your money.
You somehow have to create grounds to tackle the builder and get the penalty waived or reduced to some extent.
Dear Sir/Madam,
It is suggested that you come strongly against the builder and reply their demand notice with strongly. If the builder does amend his notice and waives of the penalty, file the case against him asking for the compensation of the damages suffered by you along with mental agony.
you may approach the court and in that scenario you may actually approach RERA or consumer forum.
File a case in the consumer court.
1. You need to pay penalty to builder in case it is mentioned in your sales agreement.
2. You can file case against builder for not providing all the amenities which are incomplete and claim compensation for harassment suffered due to incomplete project also for giving directions to buidler for completion of project
1. You need to pay penalty to builder in case it is mentioned in your sales agreement.
2. You can file case against builder for not providing all the amenities which are incomplete and claim compensation for harassment suffered due to incomplete project also for giving directions to buidler for completion of project
The builder has cheated you of your money.
File a caee immediately in the consumer forum.
Also file a criminal complaint against him.
Dear Client,
If the builder is putting penalty, you may complaint in the Real Estate Regulatory Authority.
