Hi
Know the Builder cannot ask for the payment of compound interest, you can file a complaint in the consumer forum of your district. You should confirm the rate of interest at the DDA office.
Thank You
Interest on maintenance rent and ground rent
Hello I am selling commercial property. Builder is telling me to pay interest on maintenance charges @18% compounded annually. Is the builder right in charging compound interest instead of simple interest. Also at which forum i can file complaint against the builder Lastly how much interest is charged by DDA on late payment of ground rent. Basis my understanding interest levied by DDA is 10% simple interest. Is my understanding correct. Thanks in advance
Asked 7 years ago in Property Law
Religion: Hindu
7 Answers
You will only be governed by the terms and conditions of the agreement signed between you and the better in in absence of any agreement builder cannot charge you for arrears in paying maintenance charges @ 18% compounded annually.
You can file a complaint against builder for unfair trade practices adopted by the Builder in consumer court and can let the court decide as to what the suitable interest amount should be and in all likelihood, the interest awarded by the court would be simple interest.
Sir the interest shall be as per the agreement between you and builder and the terms set out in the agreement though the interst of 18 percent is too high and further if there is no such agreement then the complaint before the consumer court can be filed for malpractice.
there is no provision in law to charge compound interest
2) at most builder can charge simple interest for non payment of maintenance charges
3) file case against builder before civil court
You will have to appraoch the civil court since it is the commercial property.
Usually SI is charges in such cases
Yes to the bbest of my knowledge it is 10%
Sir,
You can approach the consumer redressal forum .
You can also bring up a suit for misrepresentation.
For DDA, in case of default in making the payment of Ground Rent by the stipulated date, the allottee is liable to pay interest at the rate of 10% per annum or at the rates to be revised from time to time.
