I had invested in a 1 BHK flat in Mumbai in the year 2015. It is a SRA project. My rationale for the investment was that the builder had got 93% approval from the slum dwellers for the redevelopment of the Plot and the reasonable cost of the flat and location. As per the advertisements over the internet the possession was December 2020. As per the document signed between the Builder and me i had to pay 25 % of the total amount that comes to approx 12 lakhs which i had paid. Now as per the letter i had to pay 10% on receipt of IOD. Now the catch here is, after 2015 the builder kept on delaying the project and finally got the IOD in September 2019. in the midst we kept on chasing the builder for the updates but to no avail. During this time RERA Act was passed. So we the members told the builder to get RERA first then we will see about the future payments. So now the project is RERA registered in the month of May 2021. Now they have again started demanding money. But looking at the considerable delay and the mental agony we have gone through, no member is willing to pay the 10% amount. As per as i know before there was MOFA act in place. My queries 1) Even if the project when launched was not under RERA, builder says we can ask for more funds as it was during MOFA. 2) what is the maximum advance booking amount that can be asked by a builder under RERA. (i have already paid 25% of total cost) 3) How should we legally make ourselves defendable as we feel the builder is still short of funds even to start the project.
Since project is registered under RERA now provisions of RERA would be applicable
2) builder can collect 10 per cent of price of flat as advance payment
3) you have to pay builder as per terms of your agreement
4) if builder delays project you can cancel the booking and seek refund of money paid by you
1. Since the project is RERA registered, the builder is obliged to comply by the conditions and terms or rules of rera in this regard.He can't say that he will be acting on the basis of MOFA only, you can ask him to take legal action for which you an challenge properly especially for the undue delay on the side of the builder and for deficiency in service.
2. Developers and builders cannot ask for more than 10% of the property's cost as an advance payment before the sale agreement is signed. Transparency: Builders are supposed to submit the original documents for all projects they undertake.
3. Under Section 31 of RERA, complaints can be filed against promoters, buyers, or agents for all such acts which violate the rules of RERA or if the builder is non compliant of RERA.
- As per the RERA Act, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of flats.
- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest.
- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder.
1. No , the builder cannot ask for more funds before completing the projects
2. 10 percent
3. You can file a compliant before the Consumer forum
You have to go as per the contract / registered agreement
You could not have refused the 10% payment only because the project was not registered
Rera act (section 3) only says that unless the project is registered the builder cannot sell or allot the flats
This is without affecting the liability of the purchaser to make payments as per the contract
The builder must have mentioned the completion date and possession date in the agreement
If that date as stated in the agreement (and not over internet) is lapsed then only you can say that there is a delay and that you are entitled to refund of your money
Though Rera act is in force, it has not repealed the Mofa
Dear sir,
1) Under RERA rules, a builder cannot take more than 10% of the cost of the project from the buyer as advance or application fees.
2) The project is now under RERA, Builder is wrong in his claim, and now only the provisions of RERA will be applicable.
3) You can file application in RERA court and as per sec 18 ask for return of amount paid and compensation.
Thank you
Dear Sir
You may directly approach before RERA authorities and on merits a reasonable orders may be passed by it normally it will be in your favor.
