Do customers really have limited choice when dealing with builders on the late penalty charges?

Q: Sethna Group in Bangalore is building Sethna Power Tower in Horamavu since 2005, delay of over 5 years now. Though they give a monthly penalty to the 5-7K, this is minuscule as compared to the bank interest the existing owners are paying for the property with cost in the range of 60-80L. Any suggestions how such delays from the builder can be tackled. Any suggestion for lawyers or legal sites that can help people on the same same?

Avik, Apartment Resident

3rd September 2012

Residential Project Review in Bangalore

delay in delivery

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Replies (6)

I am also a purchaser in this project. Having read these posts I would like to clarify that the project was sanctioned in July 2008 and not five years. It was earlier a three storied project and then subsequently enhanced to 15 floors with all sanctions in place. It is due for hand over of the first phase of 300,000 square feet in the next couple of months. The quality of the construction is good, high speed elevators from Schindler, Granite Lobby's, Swimming pool, designated play area, and the building is well designed. The project is worth looking at, well priced and very good value for money. Contact their sales on

mahir, Apartment Resident, Bangalore

26th September 2012

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Mahir: as you mentioned there is no doubt about quality of construction - the building has stood for so many years w/o a crack. It should get completed by Dec 2012. The delay is mainly due to approvals which took longer for upper floors. Note that during the recession there had been several developers (including likes of Ittina) who abandoned the projects and fleed. This has not been the case here. It's not a pvt company but proprietorship and Mr Sethna has always managed to show up irrespective of whether he met the date or not. Plus I don't see any legal issue here since the builder has neither denied compensation nor denied that he is late.

Makarand G Kulkarni, Apartment Resident

27th September 2012

Hi Avik, You can fill this form Request Quotations for Legal Services to get legal help.

guru, Bangalore

4th September 2012

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These are all common issues with everyone.. also many projects of various buyers have been delayed nowadays. But still this long delay is not acceptable.

jithu, Delhi

4th September 2012

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What was the reason for this prolonged delay? When this project will be completed? What has the builder announced?

jithu, Delhi

3rd September 2012

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The builder keeps giving very lame excuses to people - like labor problem, contractor issues, cash flow, material issues, etc etc. There are also organizational issues, the staff do not follow orders of the management. Its a complete mess.

Avik, Apartment Resident

4th September 2012

Why don't you take advise from a legal expert? Are they increasing the penalty amount on yearly basis at least?

Neeladri sen, Kolkata

3rd September 2012

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Neeladri, do you have any legal contacts who can help us on the same?

Avik, Apartment Resident

4th September 2012

you don't stand a legal ground here - he still is willing to pay compensation and nor has he taken the money and run away. The problem is when people feel that the compensation stated in agreement is not fair, but then it's difficult to challenge the document which we have agreed at the time of buying

Makarand G Kulkarni, Apartment Resident

27th September 2012

Hi Avik, five years delay is huge. I think all buyers can join hands and protest demanding more penalty.

sophia, Bangalore

3rd September 2012

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