• Delay in handing over my flat

I booked an three bedroom apartment in Golden Lotus at Madurai, Tamil Nadu in April 2014. The total cost of the flat is Rs. 72,40,210 (seventy two lakhs and forty thousand).  I paid 32,40,210 (thirty two lakhs and forty thousand), 
on 28.4.2014 - 2 lakhs, 
on 7.6.2014 - 8,13,200 (eight lakhs and 13 thousand), 
on 16.6.2014 - 12,27,010 (12 lakhs and 27 thousand).

Since, the apartment is Joint Venture with IIFL reality the builder recommended me to avail loan in IIFL to get a full loan amount. Hence, I applied. They released 38 lakhs and given the tri-party agreement of me, builder, and IIFL. In that the month of handing over the flat is July 2015 with the grace period of three months. In case of delay occurs, builder pay Rs. 7/per square feet to the buyer. Until that period, builder will pay pre-EMI to IIFL. 
From October 2015 onward, IIFL forced me to pay the pre-EMI for 58 lakhs with 9.90 interest rate and I am paying ~32,000 per month. Every time, office people from builder tell about new date, Deepavali 2015, New year 2016, Pongal 2016. Since I frustrated, they have given me the letter for completion of the project at the end of June 2016. until now I paid 2 lakhs 80 thousands to IIFL as pre-EMI (i.e. only interest for my 38 laks loan amount). Yesterday, a new GM of the builder called me saying that they will handover by July 30 or August 10. Builder office people saying that they will adjust the delay penalty charges in my 2 lakhs final settlement. 
Here, I have not yet registered my UDS of my property as I was in the dilemma of moving the place and re sale to someone. Since, this time is very dull in property selling, reselling of my property is not possible. As I am salaried, ~1 lakh per month major portion is paying for pre-EMI, then rent for my present house. Here is my request
Can I get any compensation for very longer delay (two years before I paid 32 lakhs and rate of my property per square feet is same only)?
As I have not registered the UDS of my property, Is it possible to get the money back to me from the builder?

Please help me
Asked 6 months ago in Property Law from Madurai, Tamil Nadu
Religion: Hindu
1) since there is delay in delivery of possession of flat by one year you are entitled to claim interest for delay in delivery of possession 

2)you should register the flat in your name take possession of flat then move consumer forum against builder for deficiency in service and claim interest for delay in delivery of possession . 

3) you can also claim rentals paid by you for the period of delay and compensation for mental torture undergone by you 

4) you can cancel agreement if you so desire and seek refund of money with interest from builder 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
Delays in construction of residential projects are common in India. Developers include a grace period, generally six months, in their agreement with buyers. Most homebuyers take a delay of 6-12 months as granted. Sometimes, possession is delayed even beyond the expected tenure. Buyers have little say in booking agreements. The penalties for delay in payments by buyers are mentioned explicitly but obligations of timely delivery by builders are played down. Such lopsided agreements were common a few years ago.
The draft real estate regulation bill, which proposes a sector regulator, seeks to outline the obligations of project delivery. Until regulations are put in place, buyers will have to rely on their rights laid out in their booking agreements. Refunds can be claimed if a project is delayed beyond the period stipulated in the agreement. You can file a case in the consumer disputes redressal commissions at the district, state and national levels.
You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder.
Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court.


T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0
1) you have to file case before consumer forum to seek interest , compensation from the builder 

2) cases before district consumer forum .take around 2 years to be disposed of

3) if you cancel the agreement and seek refund builder may not be in financial position to refund money paid by you 

4) in such a case you would have to move consumer forum against builder to recover your money with interest 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
The compensation for delay mentioned in the agreement is only peanuts. You can either take the possession and accept the compensation under protest to subsequently move the consumer forum to seek just compensation for the delay in delivery of possession to you, or you may issue a legal notice for cancellation of allotment and seek the refund of money paid to the builder with compensation for delay. If the builder does not refund the money then you may move the consumer forum to recover it,
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0
Dear Sir/Madam, yes, you can ask for refund your money as per terms and conditions of sale agreement/MOU but Bank will ask the full amount from you, it is very difficult, if convince the same it will OK.
C. V. Jadhav
Advocate, Bangalore
262 Answers
3 Consultations
3.8 on 5.0
It appears that based on loan application India info line has sanctioned and disbursed loan of Rs 38 lakhs to builder 

2) I presume mr Jadhav meant was you have to repay the loan with interest 

3) you can continue to pay EMI and on receipt of refund repay balance loan amount 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
Hi, If the builder has fail to deliver the flat in time then you have no other options you have to approach Consumer Court against Builder for deficiency of services and ask for refund of the amount.

2. Before filing a Consumer Complaint first you have to issue a legal notice and then file a complaint in the Court.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
The other lawyer may have meant that you might be asked to pay the full amount that the bank granted you the loan in this.
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0

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