Penalty on builder for late handing over of Flat

Q: Hi guys,
I have recently received letter from Parsvnath to pay remaining amount and take over the property. No where they have mentioned about Rs 5 Psqf/month penalty for delayed completion.
Can somebody advice how he/she is dealing with this?
Regards
Sanjay

Sanjay ,

13th July 2010

Parsvnath Panorama, Swaran Nagari, Greater Noida

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Replies (16)

I do not agree that this project had a delay just 10-12 months. I remember the foundation work started in mid 2005. This makes the project due mid 2008 or late 2008 with their 6 months grace period per the agreement. With this the delay is minimum of 24+ months. Also, the Rs 5/- PSF is acceptable if the project is late by few months. This has been 24 + months delay. The overall interest over the 2-3 years would be much more than amount they are offering. A much larger compensation is appropriate and this is only possible through legal path. I plan on taking the possession and then start the legal path.

Customer,

10th April 2011

Comment

I own a 4/BHK apartment in Tower 8. I recd an Offer of Possession letter dt 29th Dec with no mention of the Delay Penalty Amount. I then inquired about it and asked them to deduct it from the amount asked for in the Offer of Possession letter. One would have expected them to do it on their own. Anyway I recd an updated Statement of Accounts with the Delay Penalty mentioned which amounts to 10.75 months at the 5/- psf rate. I have asked for clarification and hope to receive an email sometime next week. Will keep you posted. In the meantime if any of you have any further information please post it so we can help one another.

Lino , Apartment Resident

9th April 2011

Comment

I was given a different penalty timing. I am sure they are playing games. The contract also has many ambiguities and is written only one directional. It can be easily challenged in the courts. I believe they owe us much more than 15-24 months of late charges.

Customer,

27th March 2011

Comment

Parsvnath is offering us penalty for 12 months only saying Tower 6 started late and time starts from date of start of construction. THey have right to 3 years + 6 months from strat.
Any advise

Paresh CHAWLA,

26th March 2011

Comment

Anyone interested in pursuing a legal path? I suggest to get possession first then take the next steps.

Owner,

26th January 2011

Comment

When do you expect to get possession? Are they sticking with their promised Jan. 31st date.

Owner,

26th January 2011

Comment

Builder adjusted 18 months late fee when I made final instalment however delay is almost 24 months.
Regards

Sanjay ,

26th January 2011

Comment

Please let us all know once you get possession of your property including details on late penalty charges deducted from the final payment.

Owner,

26th January 2011

Comment

Sanjay, did they mention anything about late penalty and how much did they offer? Please make sure you discuss the late penality before making any final payment

Owner,

25th January 2011

Comment

I have received letter 3 weeks ago to take possession of flat by 31st Jan 2011. Parsvnath stated that they have received the completion letter from G.Noida authority they were waiting for.
regards

Sanjay ,

25th January 2011

Comment

I believe it will be good if we do it as a group and take it to the courts with a Class Action Case. I believe we are entitled to much more than Rs. 5/sq.ft. A 2 day delay in my payment once costed me almost 24% as late fee. If they have been sitting on our money for 1.5 to 2 years, to make it equitable, we have right to ask the same interest rate and then that will be a lot of money. This is only possible if there is a Class Action Law Suit. We can get a good lawyer on commission (if allowed) and fight this case.

Owner,

25th January 2011

Comment

Hello Mona/ Alok,
I have paid final instalment few months ago as I was told that project is complete and they are just waiting for completion letter from G Noida authority before giving handing over flats to individuals.
Now I think that was just a stunt to squeeze out final instalment amount. Project is almost complete. when I visited last time labour was laying slabs on ground floor/parking/stilt. Have not seen ameneties.
Not sure how long it will take to complete!!!!!
Regards
Sanjay

Sanjay ,

18th December 2010

Comment

Dear Mona (owner)
i have not seen the project myself but i have information that recently a lot of work has been done and also the current going rate is Rs 2800/ sqf. the project is almost 90% completed and now we need to be patient for another 1-2 years. the location is excellent and pari chowk will have a metro station in 2014. considering this the rates should move up to Rs 5,000/ Sqf by 2014. we need to have patience and not panic unless we are in need of funds immediately.
Regards
Alok Kothari

Alok Kothari , Apartment Resident

17th December 2010

Comment

Sanjay/Alok, My parents have a flat here and they are very worried about the status of this project. They have invested their hard earned money on a flat here. Have you been able to take possession? the houses are not complete yet and they have not built any ameneties as promised. Please advise!

Mona,

17th December 2010

Comment

Dear Alok, thanks for your advice. I sent e mail and a letter as well. but still waiting for revised demand letter. I am planning to consult a lawyer and delay possession till i get revised demand letter after adjusting penalty amount. Rgds Sanjay

Sanjay ,

3rd August 2010

Comment

Dear Sanjay,
please send your objections for payment of the amount and deduct the penalty for say 18 months of delay and ask them to issue a revised demand letter for payment of final settelment.email to Madan Dogra [madan_dogra@parsvnath.com]. also send yr letter by Courier. hurry up.also inform all yr friends who have taken up this property to do the same to strengthen the case.
Regards
Alok Kothari

Alok Kothari , Apartment Resident

15th July 2010

Comment

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