• Builder not accepting payment

Dear Members/Lawyers,
I have booked a flat (construction linked plan) in 2010 at greater noida west, which is still under construction.
I have a home loan taken from a psu bank which has disbursed all payments timely against demand raised by the builder. Possession of the flat got delayed by almost two years and now the delivery date is dec 2015. As per the builder he will not pay any delayed possession penalty and asked me and fellow buyers to sign a NOC for it. Morover in the NOC he also stated that he will raise the FAR from 2.75 to 3.25 and needed my consent, without showing me the revised layouts/drawings.
Meanwhile, As per my payment plan I got next demand from the builder which was disbursed by my bank, before the due date and also got confirmation from the builder's
side for the receiving of DD.
A few days back builder sent me a reminder demand letter and charged a penalty for not paying him before due date. On speaking with him he said, as i have not yet signed the NOC, my last payment is not accepted and still stands due thus resulting a penalty upon it.
My question is does the builder force us to sign any noc without showing us the approved layouts/drawings? Moreover how can he charge penalty for not accepting payment when he actually received the DD??
Regards
S Gupta
Asked 10 years ago in Property Law

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9 Answers

Hi

it is necessary now you should notify him first and if not obliged, then send legal notice for his unjustified actions which caused you loss.

You should bring it to the notice of the builder that the DD has been accepted by him, so there is no question of penalty. Regarding the the increase amount if you have objection confront him of that actual agreement/contract varies from his present claim of increased charges.

You can approach the consumer forum with your grievances and seek compensation for delayed payment n terms of rent if not paid and financial , loss and mental harassment.

if you think it is necessary that you get the possession , proceed against the builder for the compensation of all his unfair approaches and charges, delay etc after getting the possession. Even after getting the possession, you should move too a consumer forum against him for his delays and his unjustified trade tactics.

Thresiamma G. Mathew
Advocate, Mumbai
1645 Answers
212 Consultations

You can send a legal notice for deficiency of services and for delayed possession and give a reply about delayed possession and completion. Then file a case in the consumer court for the same with damages caused.or file a suit for specific performance with damages

Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultation

Dear Client,In that case you should immediately issue a Legal Notice to builder therafter file a case in front of consumer court and if you need more clarification then contact us then i will elaborate properly.

Advocate Anurag Bhatt

Allahabad High Court.

Mo.

Anurag Bhatt
Advocate, Allahabad
83 Answers
1 Consultation

1) the conduct of builder is reprehensible .

2) if there is 2 years delay in giving possession he is bound to compensate the flat owners .

3) refuse to give NOC for waiver of delayed interest .

4) in the event there is any change in layout detailed plan duly approved by muncipal corporation has to be furnished to flat owners

5)file RTi application to find changes approved by muncipal corporation .

6) you can file case before consumer forum against the builder and seek interest for delay in delivery of possession . also seek compensation for mental torture you have undergone . you can in alternative seek refund of amount paid with interest from the builder

7) it is better all flat owners join hands and take builder to task .

Ajay Sethi
Advocate, Mumbai
97224 Answers
7850 Consultations

The conduct of the builder is unjustified. Issue him a legal notice, he will fall in line. He can not charge penalty. Rather he is liable to pay you / compensate you for the interest which you had to pay to bank as the completion of project got, delayed. Most of builders are indulging in such unfair practices and awakened consumer/ buyers have brought successful action in consumer courts against them.

H. S. Thukral
Advocate, New Delhi
620 Answers
204 Consultations

Hello,

The builder is in no way justified in asking you to sign an NOC and you are not obligated any way.

Therefore his act of not recognising your payment in principle is unaccounted for and hence the penalty atrocious.

Do not provide any NOC under any circumstances.

You need to immediately send a legal notice with all details demanding the buider to acknowledge payment and demanding compensation for delayed possession.

You do have the option of seeking redressal through the Consumer dispute redressal Forum for deficiency in service and mental harrasment.

It is advisable that you get the other flat owners to follow same procedures so that greater pressure is exerted on the builder and he budges quick enough.

S J Mathew
Advocate, Mumbai
3596 Answers
175 Consultations

Conduct of the builder is illegal and unjustified.Serve him with a legal notice through a lawyer. He is liable to pay interest for delay. There must be a penalty clause in the builder buyer agreement. file case in consumer court for penalty on builder to pay interest for delay,compensation for mental agony,restraining him from charging interest/penalty for NOC etc. alternatively ask for refund of whole amount with interst after termination of booking/allotment.

S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

A. Is there any penalty clause regarding delay of delivery of possession of flat in time?.

B. Generally, in Karantaka agreement's Rs. 5 to 10 per sq. ft would be fixed for delay of delivery of possession.

C. Issue legal notice to the builder to pay penalty and claim damages against the builder in the court.

D. And. You can approach the consumer forum under deficiency in service from the builder side.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

1. Teach the builedr a very good lesson,

2. Send him a legal notice claiming the rent for similar type of accomodation for his delayed period till today with a penalty of Rs.1 lakh. Also mention in the said notice that you do not condone his delay and do not wish to sign any of the NOCs he has presented and it is illegal on his part to charge penalty of the last payment showing it as not received for the sole reaon that you have not signed the said NOCs. Claim another Rs.1 Lakh for the said mental torture you were subjected by him this way to be paid within 10 days failing which you shall go to Court,

3. If he fails, file a consumer case before the local district Consumer Dispute redressal Forum alleging deficiency in service and unfair business practice,

4. Consumer Fora are fastest and most effective in getting remedies,

5. Do not sign any of those NOCs.

Krishna Kishore Ganguly
Advocate, Kolkata
27487 Answers
726 Consultations

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