• Builder does not agree to compensation and uses Corona as an excuse.

I had booked a property in April 2017 with a builder and because the floor I had booked did not have approvals my agreement happened in August 2018 with the possession date of Dec 2020. Till March 2020 the progress was not to that extent where the builder would have completed the project if Corona wouldnt have affected. However till date the project isnt completed and seems it will take another 6 months minimum for a legal possession from builder. Builder used the Corona reason and said that they are not liable to pay compensation till Dec 2022. I have below grievances.
- Builder charged me GST @ 12% whereas the GST had changed to 8% in April 2018.
- Builder got GST rebate which was never passed on to me in terms or real money, only adjustment 
 towards future payments.
- Builder offered compensation of 2,81,500/- for the delay and never shared basis of calculation and 
 tenure.
My expectation is builder pays me the GST rebate and the extra GST amount takes with interest from the date when it was paid. Secondly fair compensation on the delay of the project.

What are my options and legal routes here.
Asked 2 years ago in Property Law
Religion: Christian

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6 Answers

You can file complaint against builder before RERA and seek orders to direct builder to pay you compensation for delay on delivery of possession and GST rebate received by him 

 

2) in alternative file complaint against builder before consumer forum and seek relief’s mentioned herein above 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

First, serve a legal notice on the promoter/builder through a competent lawyer, demanding:

- correct charging of GST

- refund of excess GST paid, if any

- basis of compensation for the project delay.

Give a deadline and on default, complain to the State RERA and agitate the matter before the consumer forum, in consultation with your lawyer.

Swaminathan Neelakantan
Advocate, Coimbatore
3071 Answers
20 Consultations

You can file a case in the consumer forum online and in RERA for the compensation of GST and delay in the project, plus the builder does not have permission to build the floor, but the builder has already sold you the flat on that floor.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

You can proceed with consumer complaint against him 

Prashant Nayak
Advocate, Mumbai
34550 Answers
249 Consultations

If the builder is not cooperative neither responding properly to your queries then you may chalk out the demands and the grievances, issue a legal notice to the builder demanding him to redress your grievances/comply with the demands made.

If the builder is not responding or not complying with the demands made, you may either approach the consumer commission with a complaint agaisnt the builder for deficiency in service and also against his unfair trade practice.

Alternately you can approach RERA with a complaint agaisnt the builder and seek remedy and releif. 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

Dear client,

 

It sounds like you're facing a challenging situation with your property purchase. Your concerns about the GST charges and the delay in possession are valid. Gather all the documents related to your agreement with the builder. Review the terms and conditions, especially regarding possession date, compensation for delay, and GST charges. You can send a legal notice to the builder demanding the GST rebate, reimbursement of the excess GST charged, and a detailed explanation of the compensation offered for the delay. This notice can serve as a formal request for resolution. You can approach the consumer forums or real estate regulatory authorities where you can file a complaint against the builder for deficiency in services, unfair practices, or non-compliance with agreements. Sometimes, engaging in negotiations or mediation sessions with the builder through legal channels can lead to a mutually acceptable resolution without going to court.

If all attempts at negotiation fail, you might consider filing a lawsuit against the builder for breach of contract, seeking reimbursement of GST amounts, compensation for delay, and any other applicable damages. Keep all communications, agreements, payment receipts, and correspondence with the builder as evidence to support your claims. You can reach out to us for further assistance

Anik Miu
Advocate, Bangalore
11020 Answers
125 Consultations

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