Compensation for delayed completion
I booked an apartment in Bangalore in 2013, and paid substantial advance. I also signed a term sheet (pre-RERA) with the builder which put completion date as 2017. Other than term sheet, definitive agreement has still not been provided by builder.
Project was stalled for several years. Now the builder has advised me that delivery date is shifted to 2022, and that the unit i was purchasing no longer exists under the revised plans - and is asking me to shift booking to a different unit. Under the circumstances, i prefer to cancel and seek refund + compensation. Queries;
1. Am i entitled to compensation @ SBI MCLR + 2%, or is there a case for a higher compensation - and if so, how much?
2. The MCLR has moved a lot over the period, and is currently at the lowest due to Covid (7.4% at present vs averahe of 9.3% for the period). What would be the MCLR used - whether it would be the latest MCLR, or average over the relevant period (7 years in my case)?
3. Since MCLR is compounded (as it is based on ongoing interest payments every month), would monthly or annual compounding be used for computing compensation in this case, or has Karnataka RERA specified simple interest in its orders so far?
4. If i don't cancel but decide to continue with the booking, is the builder still required to pay me the compensation for delay (from 2017 to 2022)?
5. I have only executed term sheets for the booking with the builder. I have asked for the sale agreement several times, but the builder has not provided. Would that effect my position in the matter if pursued in RERA.
Appreciate your guidance in the matter. Thanks a ton.