• No possession even after 8 years and builder asking extra charges

Booked a Flat, was not under RERA, As RERA was not present that time. 
Date of start of project - [deleted]
Date of application - 19-3-2013
Builder agreed to give possession in 3 years from date of excavation and 6 month grace period.i.e.
Date of posession with grace period - 30 Jun 2016
Amount paid - 95%
Project name - Sikka Karnam Greens, Sector 143B, Noida, Uttar Pradesh
Delay in delvery penalty cluase - 5 Rs/ Sq feet per month

2 Sep 2021, Received demand letter saying "Offer of possession for interior work and finishing", Builder says he has applied for occupancy certificate and will get in 30-45 days. It seems this is illegal to say this offer of possession, as you can not move in to flat.

No inclusion of penalty amount for late delivery in Demand letter. And lots of extra charges which were not there in flat allotment agreement. 

I have asked questions on Occupancy certificate and explanation of charges, but no response from builder yet. 

What are my options here ? As Project is registered under RERA now, 
 - Can i ask for full refund with interest amount?
 - Can i ask for Penalty amount as per RERA. When we signed agreement there was no RERA, But now Project is RERA approved.
- How i should proceed further, is there any other option which i should consider?
Asked 2 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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6 Answers

Take possession of flat only after issue of OC 

 

2) file complaint against builder before RERA or consumer forum and seek orders to direct builder to pay compensation for delay in delivery of possession by 5 years  and to obtain OC within stipulated period 

 

3) in alternative seek refund of money paid by you with interest for delay in delivery of possession 

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

5.0 on 5.0

Dear Client,

In the case of perpetually delayed projects that are not registered under RERA, you may file a complaint with the authority or adjudicating officer, appointed under the legislation as per Section 31 of RERA. You can not only reach out to RERA authority in the State but other legal bodies as well. If there is any default from the side of the promoter, they will be liable to pay an equal rate of interest. If you have any problems regarding violation of the provisions or rules of this Act by a promoter, buyer, or an agent, you can file a complaint with RERA. If any of RERA’s decisions regarding a complaint is not satisfactory, you may further submit an appeal before the Appellate Tribunal. If there is a mismatch in terms of what was promised by the builder and what has been delivered, you are entitled to a full refund of the amount that was paid as advance. At times, the builder may have to provide interest on the amount as well.

Thank you.

Anik Miu
Advocate, Bangalore
8879 Answers
110 Consultations

4.7 on 5.0

You can cancel the booking by communicating your decision to the builder through a notice sent  by a registered post.  You can approach RERA with a complaint against the builder,  since the  Developer had failed to fulfill the obligation under Section 11(4)(a) of this Act, the Developer was liable under the proviso to Section 18 to pay interest at the prescribed rate of 10.75% p.a. on the amount deposited by the complainant, upto the date when
the possession was offered.

You have an option either to approach RERA or consumer protection commission directly. 

You can refer to the judgment given by supreme court in CIVIL APPEAL NO. 5785 OF 2019 between 

IREO GRACE REALTECH PVT. LTD. … Appellant
Versus
ABHISHEK KHANNA & OTHERS … Respondents

dated January 11, 2021

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 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.

- 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, as per the RERA Act, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of flats.

- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest. 

- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder. 

- However, you should send a notice to the builder

Mohammed Shahzad
Advocate, Delhi
13222 Answers
198 Consultations

5.0 on 5.0

-yes, approach the state consumer disputes redressed directly, complaining that the builder made you sign an unfair contract, which is lopsided in nature and full of clause favouring the builder alone. Seek full refund with interest.

-approach the state consumer commission at Lucknow. You’ll get only superficial Relief from RERA and hence I’m not advising you to take RERa route.

- follow my advice given above. Send a legal notice to the builder first before taking the legal recourse suggested by me.

 

Feel free to get in touch for more help 


Seek interim order against the builder, in the form of stay on the additional demand 

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

You can ask for refund with interest and compensation

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

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