You can send them legal notice and if they don’t resolve you issue file consumer complaint and seek compensation from them
Interest charged by builder
Hello, Background: On Jan 5, 2021, I booked an apartment with "un-obstructing lake facing view" sales pitch in Bangalore from a prominent builder (Hiranadani). The initial site plan had villas coming in front of our lake facing apartment, thus not causing any obstruction of the lake view. I have the site layout and plan which outlines this. It's uploaded on RERA portal, as well. Additionally, the the handover was to be done by Nov/Dec 2021 but the builder got a RERA extension until 30 Sep 2022. During this time, Hiranandani quietly sold this proposed villa land & empty site to Lodha without informing us (obviously); thus misled & mis-sold us this premium flats. Lodha is obviously going to construct high-rise building thus vanishing our "lake facing view" In Dec 2022, I questioned the builder over email on this, and didn't receive any reply. During this time, they got another RERA extension until March 2023. So, the builder got 2 RERA extensions. I followed up again with the builder in March 2023, and didn't receive any response only to be getting notice to make payments. Until April 2023, I had made over 80% of the payment to the builder by this time, and the balance was to be paid during handover. As of Aug 2023, I had made another payment (now 90% payment done, and the balance 10% needs to be paid by the bank on the date of registration scheduled for 29th Aug 2023) since I wanted to flat however, the builder still didn't answer my questions. Now, the builder has been demanding INTEREST for late payments since made 10% late payment (by 3-4 months). I withheld this payment because they never answered my questions, and I feel cheated by the builder who sold me this apartment. Questions 1) Builder has gotten 2 RERA extensions on the pretext of COVID, and haven't paid us. From what I've been told builder only gets 1 RERA extensions, and if they apply for further extensions, they are supposed to pay the buyers? 2) If the builders get 2 extensions, why can't the buyer get the same? COVID happened to everyone 3) Why should I pay interest to the builder when they have cheated me? The sale to Lodha is still not open in public but since I live in another apartment of the same housing complex, I understand ground realities much better; besides, Lodha has put up a big signboard, as well. 4) We have paid 18 months advance maintenance to this builder, who haven't even allocated our car parking number and neither have they had 100% facilities in the building but has started the maintenance period! Such a sloppy & shady work. What should I be doing? Are they any laws protecting my interest, if so, please share the clause numbers under RERA act so that I can reply to the builder? Appreciate your help.
Asked 2 years ago in Property Law
Religion: Hindu
8 Answers
It is necessary to peruse agreement entered into by you with builder to advice
2) if there is clause that you have to pay interest for late payments then builder is justified in charging you interest for delayed payment
3) if builder has delayed in completing construction from date mentioned in your agreement then you are entitled to compensation for delayed payment .
you should demand interest for delayed possession at the rates prescribed in RERA law
which is Highest Lending Rate of SBI Bank + 2%
4) Under RERA if the builder fails to give possession as per the terms of the agreement for sale, then the buyer if he wishes to withdraw from the project, he can withdraw and is entitled to receive the amount paid so far and along with the interest.
5) if there is change in layout of project and your lake view is blocked then you should seek refund of money paid by you
3) if builder has delayed in completing construction from date mentioned in your agreement then you are entitled to compensation for delayed payment . But the builder already has got 2 RERA extensions. 2) if there is clause that you have to pay interest for late payments then builder is justified in charging you interest for delayed payment The builder has got RERA extensions, so the above you mentioned - how does this hold good? I can't really go back to the builder because it's a legal approval they have got.
Asked 2 years ago
If completion date has been extended by RERA then you would not get compensation for delay in completion of flat
You need to do the aforesaid
Dear Client,
RERA Extensions and Buyer Rights:
The RERA Act does allow builders to seek extensions due to unforeseen circumstances, including force majeure events like COVID-19. However, multiple extensions might warrant scrutiny.
As a buyer, you have rights under RERA. Builders are expected to adhere to timelines and deliver what was promised. If the builder has obtained multiple extensions, you should carefully review the reasons for these extensions and assess whether they are justified.
If the builder has obtained extensions without proper cause, you might have grounds to raise objections and seek compensation.
Interest Charges:
The builder's demand for interest on late payments could be challenged if you can demonstrate that your payments were withheld due to the builder's failure to address your concerns.
To challenge interest charges, you should carefully review the terms of your agreement with the builder, including any clauses related to late payment penalties. If you can establish that your delayed payments were a result of the builder's actions, you might have a basis to dispute the interest charges.
Misrepresentation and Cheating:
If the builder misrepresented the property's attributes or sold you the property under false pretenses, you might have grounds to claim misrepresentation or cheating.
RERA Act Sections:
Relevant sections of the RERA Act that might be applicable to your situation include Section 18 (Guarantee of Timely Possession), Section 19 (Rights and Duties of Allottees), and Section 14 (Extension of Registration).
Remember, the RERA Act is designed to protect the interests of homebuyers.
1. If there can be only one extension granted by RERA, then the second extension is illegal as per you, therefore you can take legal action by filing a consumer case against the builder for that itself, now the builder is demanding interest, which you refuse and say that he is only liable for the delay in construction.
2. You can escalate the matter through consumer forum
3. This comes under unfair trade practice, the brochures and the online advertisements can be sufficient proofs to sue the builder for this act of cheating.
4. You can agitate on this subject too, by first issuing a legal notice demanding the faculties promised to be provided.
You can refuse to pay interest and quote that he only is liable to pay the interest for the delay and take up the matter through RERA too.
If 2 RERA extensions are illegal then you can file a consumer case for deficiency of service and demand refund with interest
As it is the builder has not completed the constructions even after the 2nd extension hence you have a case before you to file against the builder.
You can approach RERA with a complaint venting out your grievances and seek intervention and remedy.
- As per Sub-Section 1 of Section 13 of The Real Estate (Regulation and Development Act,), A builder will have to enter into an agreement to Sell with a home buyer, and then accept the booking amount which should not be more than 10%.
- Further, a builder cannot demand advance instalments when the construction has not completed.
- Since, this delay is caused by the builder , hence you are not accountable for the payment of the interest , but the builder is itself liable to pay the same.
- You can send a legal demand notice to the said builder after claiming that as per agreement no two extension was agreed , and the said delay is not caused by the consumer but the builder , and hence the builder is bound to pay the penalty for the delay in the construction .
- If no positive response , then file a compliant before the consumer forum on the ground of deficiency of services , and seek compensation as well.
