Delayed possession offer penalty
Respected Ma'am/Sir,
I bought an under construction independent floor (1620 sq. ft.) with reputed Builder in Jan 2011. Buyer agreement was signed on Jul-2011 and as per contract, builder was liable to offer possession within 2 years.
1. Builder offered possession in Jul-2016, after delay of almost 36 months, asking for payment in two parts - A) 8 Lac (pending 5% +taxes+others) B) 3.5 Lac (Conveyance deed charges)
2. As per buyers' agreement, Builder is liable to pay INR 5 per sq. ft. per month for delay in possession and this would be adjusted against conveyance deed charges. So, I should be paying 3.5L - 2.9L (approx) = 0.6L
3. Builder is refusing to adjust this delayed penalty citing reason of exorbitant price rise escalation of 17% in labour and material charges as per RBI index from Dec-2010 to Dec-2015. Builder says that I am liable to pay additional Rs 5 Lac for this price rise but are waving off as kind gesture. As per one clause in Buyers' agreement, "Price rise is escalation free unless and until there is exorbitant rise". The clause does not mention any figure as to what percentage can be considered as exorbitant.
4. I have paid all amount timely as per demand notice of builder.
5. My contention is that -
a) My flat/floor was completely ready by Aug-2012, as per pics posted by Builder on their registered website and so the price rise case should not apply. The flat was inhabitable but exterior work like water pipeline, sewerage pipeline, electric lines etc work was not completed yet by Aug-2012.
b) Price rise liability on me should be valid only from Jul-2011 to Jul-2013 only. And, price rise of 10% should be norm and should not be considered exorbitant.
c) I was sort of compelled to buy another ready to move-in flat (2Bhk) against heavy loan in Aug-2015 due to family issues and inordinate delay by builder. The flat was bought under resale. I was staying on rent till Jul-2015.
I have already paid part-A payment but held part-B payment.
Kindly assist me with what action I can take further.
Kindly let me know any further information that is required.
Thanks a lot in advance.
Asked 7 years ago in Property Law
Religion: Hindu
Thank you for your advice.
1) Is there a procedure for payment under protest? How to pay under protest?
2) I have paid requisite amount to builder except for conveyance deed amount (to be paid post review of flat condition). Builder is now asking me to sign an undertaking before handing over keys. The undertaking has some clauses like -
- I do not have any dispute with the builder.
- If any claim is raised then company is entitled to recover 10 times the damages, cost etc.
- I had requested company to waive off escalation charges (labour, material cost etc) of Rs 5 lakh, which company has waived off.
I do not wish to sign such undertaking.
So, I am planning to drag builder to consumer forum first without obtaining keys.
Can I file case in civil court as well, in parallel?
What is the loss (monetary, time) that I can incur?
Thank you.
Asked 7 years ago