• Discrepancies in Allotment Letter and Agreement

In 2016 I had booked a flat in an under construction project in Mumbai with completion date mentioned in Allotment letter as June 2018. Due to inability of the builder to complete the project, he transferred the project to another developer in 2018 who registered it in RERA with a new completion date as Dec, 2020. No consent from me was taken for this transfer of ownership. Mine agreement was registered with this new developer who insisted on Dec 2020 completion date despite of my written protests to maintain it as June 2018. Eventually the agreement was entered in Dec, 2018 with completion date mentioned as Dec 2020. Till June 2018 (original completion date) I had paid almost 50% of the final value.
The developer has offered possession just now (May, 2021) but without promised amenities e.g. swimming pool, gym, garden etc. (which are still under construction). Even the Municipal water supply has started just a week ago viz. November, 2021. The building has been given "BARE SHELL Occupation Certificate (OC)" by SRA. My queries are as follows:
1. Can I claim compensation for delayed possession w.r.t. original completion date (June, 2018) and how the compensation will be calculated? Developer has refused to pay any penny.
2. Whether "Bare Shell OC" permits the flat owner to occupy the flat and start residence? Is this a legal term?
Asked 3 years ago in Property Law
Religion: Hindu

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9 Answers

You can claim compensation for delay in delivery of possession for 6 months 

 

2) once OC is issued you can take possession of flat

 

3) you can sue the builder for failure to provide promised amenities 

Ajay Sethi
Advocate, Mumbai
97884 Answers
7939 Consultations

1. Compensation can be claimed. However the completion date will be taken as the one mentioned in your agreement and not in allotment letter

2. U can take furniture possession with a bare shall oc. But that does not mean that the flat is habitable. For formal possession a full OC is required. 


You will be paid interest from the date of completion date till you are given possession with full OC 

For compensation the adjudicating officer of Rera will adjudicate the matter after the Rera authority finds that you are entitled for compensation

Yusuf Rampurawala
Advocate, Mumbai
7788 Answers
79 Consultations

You can claim compensation from dec 2020 only as the builder was changed. 

If the said oc consist of your bldg in cluster development then you can occupy with that oc

Prashant Nayak
Advocate, Mumbai
33136 Answers
215 Consultations

Hi, First you need to verify the clause in the Agreements what are the terms and conditions for delayed possession. If you don't want to go with project, then you can lodge complaint either in consumer court or RERA. If you want to go with the project once they handed over the possession of the property and they execute the Sale Deed then you can lodge a complaint in the Consumer Forum.

Pradeep Bharathipura
Advocate, Bangalore
5617 Answers
338 Consultations

- 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. You can claim the compensation from the original date as it is the fault of builder and not you , 

- File a compliant before the Consumer forum against both the builder and developer . 

2. Occupancy certificate is mandatory for getting possession . 

Mohammed Shahzad
Advocate, Delhi
14909 Answers
226 Consultations

1.  Since the date of completion was notified as December 2020 especially when RERA also had approved the same  date of completion, you may not have proper grounds to claim compensation for the delay in completion from June 2018, however you may give a complaint before RERA and seek compensation seeking direction to the developer to pay the compensation from June 2018, let them pass an order based on the facts and legal provisions, after which you can decide further course of legal action thereon. 

2.Bare shell refers to a property, whose construction is completed and has basic building services in place. However, such properties have unfurnished interiors and lack heating, ventilation and air-conditioning (HVAC) systems, lighting, plumbing, and elevators.

If you feel that it is inhabitable due to lack of essential amenities, you may decide not to occupy or refuse to take possession till the lacking amenities are provided.  

T Kalaiselvan
Advocate, Vellore
88086 Answers
2379 Consultations

Please lodge a written complaint with the RERA authority of your State. You are entitled to compensation for the delay. If there is no satisfactory response, you may file a suit at the proper court, in consultation with a local lawyer.

Swaminathan Neelakantan
Advocate, Coimbatore
2976 Answers
20 Consultations

Dear Querist

If there is any default clause regarding the fine or compensation then you may claim the same as per the terms and conditions of the agreement and not otherwise.

 

Feel Free to call

Nadeem Qureshi
Advocate, New Delhi
6319 Answers
302 Consultations

Dear client, 

1) you can claim compensation 

2)  Yes it permits the owner to occupy and start residence and is a legal term

Thank you

Anik Miu
Advocate, Bangalore
10500 Answers
121 Consultations

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