• Builder not completing the project. Charging a heavy CAM from residents. Shared a provisional OC

Builder was supposed to deliver the project by 2012, but gave possession of houses by 2018 only. Even after that many details like STP, electric substation, Club are pending for completition. Due to this, the project is not getting handed over to the authorities and competition certificate is pending.

We had bought the house in 2021 after receiving provisial OC. RWA was already formed and we were expecting quick handover, without knowing the extent of how much of project was incomplete.

All this while, builder is collecting hefty CAM charges from residents. Many residents have stopped paying, resulting in poor maintenance too.
RWA is scared to take the handover from the builder as many things are pending for completion.
What can we residents do?
Could RWA take control of CAM and still force the builder to complete project?
Asked 2 years ago in Property Law
Religion: Hindu

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12 Answers

File complaint against builder before consumer forum and seek orders to direct builder to complete the facilities promised by him 

 

also seek litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
99855 Answers
8148 Consultations

If the RWA is a registered body, it an issue a legal notice to the builder demanding him to complete the tasks pending while handing over the property.

If the builder is not responding or complying with the demands, then the RWA can approach RERA or the consumer distress redressal commission for relief and remedy.

 

T Kalaiselvan
Advocate, Vellore
90057 Answers
2499 Consultations

You can go against him in rera or consumer court depending what reliefs you require 

Prashant Nayak
Advocate, Mumbai
34569 Answers
249 Consultations

Since the builder is not providing proper maintenance you can decide about paying it or not for the reasons you may rely upon.

If you feel that the maintenance is very poor and do not deserve the charges to be paid then you can issue a legal notice to the builder demanding the proper maintenance or you will stop paying the maintenance amount 

After that you can escalate the matter legally and pursue the same properly.

 

T Kalaiselvan
Advocate, Vellore
90057 Answers
2499 Consultations

If OC is issued then RERA will not intervene 

 

continue to pay maintenance charges 

Ajay Sethi
Advocate, Mumbai
99855 Answers
8148 Consultations

If project is registered with RERA then file complaint to RERA authority and can slso claim damages. There is no illegality if RWA undertakes maintenance work. Though the grievance is strictly does not fall within purview of national commission but you can try luck. The jurisdiction of national commission is Rs. 1.00 cr and above. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

Lodge a written complaint with the State RERA authority against the builder seeking appropriate reliefs. Engage a competent lawyer and agitate the matter before the consumer forum. If the builder has not provided you with all the common amenities in terms of the project, the builder has no legal right either to collect the CAM charges or to sue you in case of default in payment.

Swaminathan Neelakantan
Advocate, Coimbatore
3071 Answers
20 Consultations

Stop paying maintiance is first thing. Ad approach RERA / consumr court.

Yogendra Singh Rajawat
Advocate, Jaipur
23083 Answers
31 Consultations

It depends on what terms and conditions RWA was formed and took over the project from the builder. Normally there is clear mention of the pending things and an agreement is signed or undertaking is given by the builder to complete the project in stipulated time limit. If it is so, then you residents may ask the RWA to pursue the matter with the builder or approach the govt authorities/courts to enforce the terms and conditions. Not paying the maintenance charges is not the solution. It may incur interest on the pending amount or may lead to discontinuation of facilities like electricity, water etc. 

You may approach the relevant govt authorities for completion of the project and for other remedial action. But it is not advisable to stop paying the maintenance charge.  

Dalbir Bharti
Advocate, Gurgaon
41 Answers

As you took possession you need to pay maintenance for services provided by him you can claim refund for maintenance and compensation for other aspects 

Prashant Nayak
Advocate, Mumbai
34569 Answers
249 Consultations

Hi, If the project is RERA register either you or association can register the complaint. If not so you can approach consumer forum for deficiency of service claiming compensation.

 

Pradeep Bharathipura
Advocate, Bangalore
5625 Answers
339 Consultations

- As per RERA, the buyer needs not to pay maintenance charges, till he possesses the apartment,

- Further, the builder is not eligible to claim maintenance charge before the completion of the total facilities, and only after completing everything, the builder can ask for maintenance from the buyer. 

- Hence, if your builder has given you the letter of possession, then from that date onward you are bound to pay the maintenance charge.

- Further, as the society is already formed then it can take CAM into its own hand , and can also approach the Consumer forum or RERA against him . 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

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