Builder has charged interest on service tax
All the booking payments were made to the builder (NEFT transfer) at the time of the booking.Builder also provided receipts , including Service Tax , VAT ,registration , stamp duty ,etc. However , after 4 months the finance guy called me and told me that Payment against Service Tax and VAT does not reflect in their account , so i started chasing my bank to check , The bank confirmed this transaction had got reversed because of a technical error and that they could not notify me because this was an FD(Fixed Deposit) account.Now when i received the final demand letter , they have sneaked in the Interset on Service Tax as an additional item ,forcing me to pay up to get the possession.It is evident the finance guys are trying to hide their mistake ,
Regarding Possession , the builder has asked me to pay the amount as per the final demand letter , after which they will take another 30-45 days to get the flat ready.Right now the flat is in bare condition with minimum work done and even plastering and tiling work pending , its been like this for almost 6 months without any progress. Since i bought this under subvention (the builder also refused to furnish me a copy of the subvention agreement) the builder received 95% payment at the time of booking and that the flat should have been ready to occupy as per the agreement.The agreed possession date as per the agreement was December , 2015 , with a grace period of 12 months as per the agreement.
I think i have explained quite a few things here , pls pick out the points which you find contentious and advise me because i am really fed up of surprises from the builder.
Asked 8 months ago in Property Law from Thane, Maharashtra
1) has occupational certificate been issued by Muncipal corporation ?
2) builder cannot deliver flat unless OC is issued
3) OC would indicate that flat has been constructed as per sanctioned plans
4) if you have paid service tax , vat payments and receipts have been issue to you builder should have intimated to you if payment had no been received against cheque .
5) you have not mentioned what is interest claimed by builder
6) if it is not significant amount pay under protest and take delivery of flat if OC has been issue by TMC
You have mentioned that the agreed possession date as per the agreement was December , 2015 , with a grace period of 12 months as per the agreement. So the builder is enjoying the grace period hence you cannot raise a issue of possession within the expiration of the said grace period.
You can write to the builder that the final payment shall be made on the date of registration and possession since 95% of payment has already been done as on the date of the requisition of final payment.
The builder cannot insist on final payment without completion of construction and keeping the flat in a ready to occupy position.
In General, inan subvention agreement, the developer bears the interest cost till possession or for a fixed period mentioned in the buyer-seller agreement, as the developer is bearing the interest cost, it has an incentive to finish work on time. So confirm if you have signed the subvention agreement with the builder.
You may end up paying much more than the price of the property in case of delay.
Some subvention schemes are for only a fixed period, after which the buyer has to bear the interest cost. Non-payment or late payment of EMI by the builder can spoil your credit score as the loan is in your name. You may also face project delays. There are chances that the funds disbursed by the bank are used for financing other projects. Check the promised possession date in the documents and the penalty to be paid by the developer if the project is delayed.
For the present whatever you initiate, lease make it a point to keep a proper documentary evidence of all the actions taken so that in the event of litigation on this, you can drag him to the court with proper reasons and seek reliefs accordingly.