Increasing demand for property, cut down in interest rate and easy registration process has attracted more property buyers to invest on their dream home. Today real estate is one of blooming industries and demand for property is increasing day-by-day. There are number of builders and developers in city who offers or promise list of amenities and special features to attract prospective buyers. But there are some builders or developers who delays completion of project and delay handover of apartment.
There are property buyers who say his/her flat’s possession has been delayed by six months or more. Even those of reputed builders-get delayed unexpectedly. Consumers finally have got a voice and a forum to air their grievances. Using consumer courts, citizens have been able to get back their money from sloppy builders, dishonest shop keepers, shady sellers of all kinds, and even from Government organizations such as the railways, bus companies, and so forth.
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Consumer Protection Act
A consumer after is one who buys goods or services with his hard earned money. In case of delay, the builder is liable to refund the amount paid with interest (for the period of delay) as there has been a breach of contract. A promoter, who constructs or intends to construct such block or building of flats, shall specify in writing the date by which possession of the flat is to be handed over. Default would attract penalty under both Consumer Protection Act and the Flat Act. The builders are careless about compensation because there is no real estate regulator yet. A consumer doesn’t want to get into a legal tangle and just wants his flat in hand. Builders take advantage of this helplessness.
Using consumer courts, many citizens have been able to get back their money from sloppy builders. But many consumers also lose their cases in the consumer forums because they have not followed some important rules about filing their cases. The most important rule that every consumer must follow is to get a bill or receipt for whatever he buys or payment made. The Consumer Protection Act also empowers the courts to penalize consumers when they are at fault. There have been cases where consumers have been caught filing false complaints for gain, and they have been asked to pay up money to the opposite party.
Compensation agreement clause
Often, builders have an agreement clause that assures buyers a daily damage for delayed possession, but few buyers, if any, invoke it. Recently, the Maharashtra State Consumer Commission directed a developer to shell out Rs 20 lakh at the rate of Rs 2,000 a day for a delay in giving possession. It is a rare case in which damages per day were claimed, and given. The developer’s contention was that the old building was “in ruinous’’ condition and was on marshy land, which required piling work for about six months to make it strong. But, State consumer commission ordered builder to pay compensation and stated that builder problems can’t justify delay.
Points to Remember
- Property buyer can present their own cases in consumer courts and do not need to engage a lawyer.
- A consumer or the property buyer must file their complaint within two years of the dispute arising, after which it becomes outdated.
- A written complaint, can be filed before the District Consumer Forum for pecuniary value of up to Rupees twenty lakh, State Commission for value up to Rupees one crore and the National Commission for value above Rupees one crore.
- The builder problems can’t justify delay.
- Default would attract penalty under both Consumer Protection Act and the Flat Act.
- Every consumer must get the bill or receipt for whatever he buys or payment made.
- Often, builders have an agreement clause that assures buyers a daily damage for delayed possession. Ensure your agreement includes agreement or compensation for delay in possession.
Tags: Apartment booking, Apartment Buying, Compensation, Compensation agreement, Compensation for Delay of Possession, consumer courts, Consumer Protection Act, daily damage for delayed possession, delay in completion of project, delay in giving possession, Delay of Possession, demand for property, legal action against builder, sloppy builders
I am facing a similar problem, As we had booked a flat in Ansals project. They had already taken partial instalments from us but the work for these is yet to start. The project is already delayed over two years. can any one suggest me what action can we take and how to get our money back
Even ansals are on same line? They are the one responsible for theatre fire no? why did u invest money on such groups who never own any moral reasponsibility? sorry gaurav doesnt mean to hurt you.
I also do not like Ansal . Its bad name.
Never do deal with such group.
I like this act which protects consumer from the Business property dealers this is the great news it help to all the people who facing the problem .
This is a very good act. But what if the registered agreement says that
“the flat is expected to be belivered by January 2010 and/or within 3 months of obtaining Occupation Certificate which ever is later…”
Actually this is a stalemate situation for the flat buyers… these buggers make the agreement in such a way that if you really read it you will never buy the flat.. these are simply onesided. Does consumer Protection Act coveres this aspect also…?
Regards
thanks for the information. But some more information required. Like what type of papers reqd, How many time it takes to get the decision.
We face a similar situation. AMARTARU VII A is yet to be handed over to us and the entire building is waiting for OC and all the flat owners are waiting for the possession. The flat is supposed to be handed over to us by 31.12.2009. The builder is silent and no communication from the builder also.
Very nice information. Thanks to all the contributers for enlighting us. I have booked a appartment with Hiranandani, they intially commited to handover the appartment in 2010. The progress has been very sluggish. I got panic and felt i was losing my capital ( EMI of Rs 12 Lakhs ). Sinc my confidence on their completion was lost. Now one of the senior president has also said over the phone about completion in 2012 ( Still Doubtful ) I requested for cancellation about a year and half ago. Hirco is not co-operating. According to my quotation signed document, cancellation will mean 1 % charge. I accepted even for this. My argument is refund me with 1% less and pay interest for delay in refund. I have lodged a complaint with BEWARE of CNBC TV 18. Now Hirco is willing to pay me refund without 1% cancellation. But this will not give me my dues fairly. I am requesting for revised payment schedule, Hirco is not forthcoming to Co-Operate and armtwisting the investor. At one stage they were telling me that the cancellation will attract 17.5 % cancellation charge, which is not documented or agreed to anywhere. Can i now approch consumer court for interest from the day of my first written request. As per the following payment demad notes, hirco will terminate the sale if they do not receive payment in 15 days. I requested Hirco to exercise this option also for last one year and eight months. Now they have stoped responding to mail. Hiranandani is a reputed company and i had tremendous faith on them. I never expected this to happen from Hirco. Hirco is now willing to refund on conditional basis of my withdrawing the complaint. Now my fear is after i withdraw if they go back on thier promise i have no where to go. I will appreciate if i am guided properly
please give me some more information about compensation and when tulip started his construction work
I bought a flat in purva elita keppel
The builder has delayed it for 1 1/2 years. He has not paid any compensation till now for the amount he has promised in the contract. (it is still peanuts). Today he has sent me a bomb shell, he is asking for 3 lakhs penalty for late payments(morally there is no late payment from my side) .
Should I go to the consumer court? Please help me !
The law is insufficient to cover the loss due to delayed or no possession. The rates of properties are rising at exponential rates. In case of delay if the builder offers to repay the amount with interest, the buyer will not be able to buy another house of same size in that area from the amount so received. Real estate deals should be considered at par with investment in stocks. Purchasing a house under construction must be treated as a future’s contract.
I booked a condominium in Royal Palms in 2005. The agreement promised possession by April 2008.
The project is still not complete and the builder demands the complete amount without providing all amenities(taps, proper electrical fittings, fixing leakages, lift etc.) and even the furniture promised while booking is not being provided.
And along with the complete amount he also demands maintenance charges since April 2008.
What can be done in this case?
What are my rights as a consumer?
The property rate has not appreciated much due to the dispute.
Hello!
I have been going through the queries and replies posted above, and felt that i have maybe found a place where a common consumer and their queries can be answered.
Thats great work!
I have a query too, and the details are mentioned below:
We have booked an apartment with Runwal Developers. This particular project is in association with Capitaland, and is by the name of Orchard Residency. Runwal and Capitaland are referred below as “builder”. Now, the points relating to the case are as below:
1. The possession of the apartment was scheduled for June 2009 (as is mentioned in the agreement)
2. Today it is 29th Septemeber, and the building is still not ready
3. Now, we are asking for possession of the flat, and the builder has come up demanding interest on delayed payments (@21%)
4. The delay in payments were because of delay in possession
5. The builder is not willing to pay interest on delay of possession (@9%), as he is citing that the delay was because of factors beyond his control (which includes all the reasons ever possible in the contract)
6. However, there has never been an intimation from his end, as to the reason for the delay in construction, and hence we really do not know what specific reasons exist for the delay
7. During the construction phase, when the demand letters were sent for the slab wise construction payments, there was no mention of outstanding interest
8. It is now, at the time of possession, that we are being asked to pay this interest
9. We have cleared all payments to the builder, and there are no dues outstanding (apart from the interest that he wishes to claim now)
We wish to understand our position in this case.
1. Can the builder deny handing over the possession, as all dues have been cleared
2. The fact that the builder has delayed possession has resulted in a tremendous financial burden (paying of EMI and rent) and a lot of stress
3. If we calculate the interest payable by them towards delay in possession, it would be more than the interest payable by us for delay in payments
We are in a fix about this, so a guidance would really be appreciated.
I had also booked flat in Orchard residency by Runwal at Ghatkopar. The builder has done the same thing as mentioned by you.
rupesh
Rupesh !
Same with me !
Whats the solution ?
dil
Hi,
I am facing the same issues with Runwal on their Orchard Residency project. Have you guys got possession of your flats.
If not we can put up a fight together. He is taking advantage because all the clients are approaching him independently. We need to approach him as a group and talk to him on compensation.
Let me know if you are interested. We need to set up a group.
Regards
Niranjan
Go consumer court or take help from media
sudhir
Sk !
Very nicely put up.Whats latest on this.Iam a victim & need latest & more info as wellas advice -how to resolve this issue.
rgds/dil
Hi! Still waiting for a revert…
Hi SK,
I have no answer to this but thank you for putting this up in the forum. We have just booked a flat with Runwal Builders called RUnwal Greens I guess I should withdraw from the project
Hi SS,
I have gone into numerous discussions and deliberations on this issue, but the final verdict is that until we as consumers, as a united force, take a tough stand against such buillders who resort to such arm twisting techniques, these issues will always be there to haunt and trouble us.
I think you would really do better to take a flat where you r getting a ready possession, to save urself frm all this trouble. However, i can understand that might not the the easiest thing to do.
As far as Runwal is concerned, I have to say they are a deceitful lot. Even in terms of the delivery, the flats have been stripped of many things that were earlier promised. eg. security door (they want to charge extra for that now), granite has replaced marble at places…well there are loads more…
Anyway, wish you the best for your flat…it would do you good to consider more options.
I hope someone can throw some light on the best way to tackle my situation…
We should come together and take action against Runwal
Hi Atul !
Agree with you !
I need more info & help .Please advise.
Thanks !
rgds/dil
dilnice09@gmail.com
Hi Amit,
Have you also taken a flat with Runwal and if yes, which property?
We have booked a flat with runwal greens this weekend. It seems runwal orchard and runwal greens are different projects by the two runwal brothers. So, we need to check on the reputation of the greens brother in delivering projects on time?
Also, does anybody have an idea about power cuts in mulund
Do Join the FACEBOOK group, dedicated to facilitate a meaningful & informed conversation between homeowners @ Runwal Greens development
Excellent networking opportunity for those who have jumped in the bus and booked their dream home already – don’t miss the opportunity to share info and seek advice http://www.facebook.com/home.php?#!/…00001452086742
Best Luck and keep posting
Go to Facebook – Just search Key words ‘Runwal Greens Mulund’ ADD as a friend, there are DOZENS of Runwal Greens homeowners already networking!
Shradha – Welcome to the Runwal Greens homeowners club
Copy paste below url in your internet browser – it will take you to the ‘Runwal Greens Mulund’ profile, add the profile as friend and you will be added to the group – there are over 50+ active members already connected/networking and sharing information. So do not miss the opportunity to be in the real loop of information.
http://www.facebook.com/profile.php?id=100001452086742
Incase the above option does not work – just log in to facebook and search key words ‘ Runwal Greens Mulund’ I’m sure u wil find the group and then send a friend request. thats it!
hope to see you on the FB (If u do not have FB account – don’t delay it, open a new one today , Its free
do not book any property in Runwals, they will backout from their promises example can be seeen at their ghatkopar orchard capitaland project,
flat owners are cheated at the time of giving actual possesion of the flat
before doing anything please contact anybody from that property and know the facts.
comment on this page to know more prople.
Hi !
Agree with you .I am also a victim.
Can you advise me on latest & how i can be helped please ?
rgds/dil
dilnice09@gmail.com
In runwal orchard residences ghatkopar they are forcefully collecting interest money for any payment delay, their agent is settling amounts as per his relations with the party, some of them have been vaived off by interest amount,
there are people mainly investors who have still not paid the amount and are going for legal action against runwal developers for their cheating practice,
those who have not yet paid this penalty please do not pay and wait for some time till they comeup with some compromise.
I have seen several comments about Runwal (Capitaland) Orchard Residency, where the Builder is seeking interest from those who had booked the flat….as I am also one of the victims, would like to know the status and what needs to be done from my end ?
Hi !
I am also a victim. Whats latest ?
Need help !
Thanks !
rgds/dil
dilnice09@gmail.com
Hello !
What is the latest on this problem ? i am too going thru this harrasment.
Pl advise.
Thanks !
rgds/dil
dilnice09@gmail.com
Please look at the agreement made carefully. There will not be even a single clause against the builder / developer. Though the buyer also pays the advocate for writing the document, the builder pays much more, for the entire building to the advocate, to write all the clauses favouring them. If the buyer want to change any clause, builder will not agree and may refuse to sell the flat, as he may get another buyer. Whereas, buyer may not get a property, with all the options and choices, once a flat / property is finalized as per one’s choice, again.
In case of delay, the builder is liable to refund the amount paid with interest for the period of delay as there has been a breach of contract.
Hi,
I am also a similar victim. I purchased a flat from SLV Developers (Hyderabad, manikonda area). I have aquired all the receipts of payments and date of payments. I took the loan amount The builder has registered a semi-furnished flat to me in June 2011 and had initially agreed to deliver it by October 2011. However, it is already 2012 and the house keys have not been delivered. The builder approached LICHFL on 1st Dec 2011 to release the final loan amount of Rs 2 Lakhs that required my consent. I did not approve since the house was not completed by then. Now the builder is furious and trying all means to harass me. He says ..”You will get the flat only after 6months and u will need to pay additional 2 lakhs to get the flat keys”. I complained to LICHFL about the builder’s behavior. Please suggest me, what else can I do to make sure he delivers the flat keys at the earliest.
Hi,
Even i want some suggestions for my query.
I have booked a flat at reputed builder, i have done the all the payments except the last installment which is to be paid after possession of flat. builder had intimated in sept 10 that we would get the possession by jan 2011.but now almost 1 year is passed and i have not received any commmunication to take the possession.
Hence,guide me in writing letter to builder asking for delayed possession as i am paying heavy interest on housing loan & if that money i would have invested anywhere else,i would have got good returns on it. please specify theses points and write a profeesional letter and post it.
i am waiting for your reply and comments.
my email id jhanvi362004@yahoo.co.in