• Builder asking for late payment and there is no OC even after 5 years from booking

Hi,

I booked one flat in Casa Greens 1, Greater Noida(West) in 2016. The agreement was deliver it in 36 months time. Last year during pandemic, they sent an email for possession. I visited them February this year. I paid them two years maintenance charges as per agreement and also few last expenses like electricity meter, sewer etc. 

They have not received OC yet so they are saying that I can start living in flat but registration process can only happen once OC os available. They are charging me 164000 for late payment also. Since I am not in India, taking the flat without registration not going to help me as of now.

I also lost PMAY subsidy that I had received because I couldn't get the delivery within 36 months time. I am paying 10.25% interest rate for loan and cant transfer it to another as I don't have OC.

What actions can be taken builder in this case?


Thanks,
Sumit
Asked 3 months ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

13 Answers

File complaint against builder before RERA or consumer forum seek orders to direct builder to obtain OC within stipulated period and to execute registered sale deed in your favour and  for refund of maintenance charges charged by builder 

 

also seek compensation for delay in delivery of possession 

Ajay Sethi
Advocate, Mumbai
84936 Answers
5617 Consultations

5.0 on 5.0

You can execute POA in favour of family member for filing complaint before RERA or consumer forum 

 

POA should be attested before Indian consulate 

Ajay Sethi
Advocate, Mumbai
84936 Answers
5617 Consultations

5.0 on 5.0

You can refuse to pay the penalty amount stating that the builder has not completed the construction within the prescribed time and has not obtained OC.

You can file a case before RERA and seek relief against the builder for delay as well as unfair trade practice and unjustified demands. 

 

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

You can authorize any relative on your behalf through a  POA deed to conduct the case during your absence  or engage the services of an advocate for taking care of the case. 

T Kalaiselvan
Advocate, Vellore
75050 Answers
1263 Consultations

5.0 on 5.0

- Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws.

- If the builder is unable to obtain the occupancy certificate, it means that the builder has violated building law or deviated from Construction Plan, and further it is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.

- Further, It is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate. Buildings without OCs are not given a water connection and are charged a higher property tax.

- Hence, in the absence of an Occupancy Letter, you should not accept the possession letter from the builder.

- Further, you should not pay the full amount before handing over the OC to you. 

- Further, as per RERA,, A builder cannot give possession to buyers without OC

- Further for the delay in possession of the flat , the builder is under obligation to pay 10% interest for the period of delay, and even you came in possession then also you can claim from him.

Further, you can also file your complaint before the Consumer court on the ground of deficiency of services, and to claim compensation as well. 

Mohammed Shahzad
Advocate, Delhi
8498 Answers
92 Consultations

5.0 on 5.0

you can file complaint under rera Or consumer Court against the builder and seek compensation. If you need any further assistance then you can approach me through kaanoon or LinkedIn.
https://www.linkedin.com/in/prashant-nayak-5477b138

Prashant Nayak
Advocate, Mumbai
24934 Answers
58 Consultations

4.4 on 5.0

Instead of taking payment, you are making payment. 

There was absolutely no need to pay 2 years maintenance charges.

 

Maintenance only on OC and Possession only after OC. 

So immediately send a legal notice through a lawyer asking for refund for maintenance paid and also seek compensation for delay. 

 

If builder doesnt come to senses after notice then later you can initiate legal process in RERA or consumer forum using POA. 

Ankur Goel
Advocate, Bangalore
373 Answers

4.9 on 5.0

You do not have to pay any penalty charges to the builder for late payment as there has been a material breach on the part of the builder as well in the form of delay in delivering possession to you within the stipulated period.

You can start by sending the legal notice to the builder asking him to waive off the penalty charges as well as to compensate you for the delay in delivery in possession. If the builder fails to adhere within 15 days of receipt of the legal notice, you can file complaint against the builder in either RERA or consumer court in order to get the penalty charge waived off as well as to get compensation for the delay in possession by the builder, alongwith damages for mental agony and litigation expenses.

 

Siddharth Jain
Advocate, New Delhi
5820 Answers
88 Consultations

5.0 on 5.0

Legal action can be taken without your physical presence as you can be represented by an advocate in court. Your personal appearance would not be mandated.

You can also give a power of attorney to any friend or family to represent you in Court. It needs to be duly notarized. Apostilization would not be required.

 

Siddharth Jain
Advocate, New Delhi
5820 Answers
88 Consultations

5.0 on 5.0

Hi,you can seek delayed interest from the RERA …Also builder cannot offer the possession without getting the OC from the relevant authorities…The complaint can be filed without your presence and the case can be decided within 3-4 months ..You can contact me for legal assistance over the same 

Hemant Chaudhary
Advocate, Gurgaon
4617 Answers
55 Consultations

4.9 on 5.0

Dear Sir

You can file a case before RERA and seek relief for the delay and the unfair trade practices of the builder.

Thank you

Anik Miu
Advocate, Bangalore
3099 Answers
31 Consultations

4.9 on 5.0

1. if there is no OC there is no question of the builder charging any maintenance and consequently any late payment charges

2. the liability of the purchaser begins from the date of OC and not prior to that

3. so a mere possession letter from builder without OC means nothing 

4. the purchaser is not bound to take the possession without OC

5. Also upon receipt of 20% sale consideration the builder is compulsorily required to register the agreement for sale with the purchaser

6. you can still sell the flat to a third party even if there is no OC

7. lodge a RERA complaint against the builder

8. follow up question asking how much time it will take for the proceeding is completely irrelevant. Lawyers are not astrologers to predict the time

9. you will have to grant a POA to someone in India to initiate legal proceedings on your behalf against the builder in the RERA Court 

Yusuf Rampurawala
Advocate, Mumbai
6565 Answers
60 Consultations

5.0 on 5.0

No one cares about your stupid rating Sir!


sir if any unwarranted comments are again made in my comment box i will not hesitate to report you

so please beware

Yusuf Rampurawala
Advocate, Mumbai
6565 Answers
60 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer