Compensation for Delayed possession

Q: Guys as you all must be knowing that our project has been delayed by more than 2 years. In my each meeting and written communication with LODHA 'bout the compensation for the delay possession, I was getting replay that that will be adjusted during the possession demand letter. But now last week when I asked my customer representative for a site visit, she asked me to pay the remaining 5% of the consideration i.e. nothing but the possession amount else I won't be allowed for a site visit. And she also confirmed LODHA is in no mood to pay the compensation to us for the delay payment. I asked her that by saying this they are breaching the contract mentioned in the Sale agreement. They said they don't bother 'bout this. So guys I've decided not to pay the possession amount and go to the consumer court. I also think you all will get the same response when you'll be aksing for the compensation. Guys please share your experience and opinion.

AMIT PATNAIK, Apartment Resident, Mumbai

4th October 2012

Legal in Lodha Casa Univis, Ghodbunder Road, Thane

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Replies (25)

any updates on the possession date of Building Ceilo C ... i am told it will not complete before 2016 !!! ..that is absolutely ridiculous !!

suhail, Apartment Resident, Mumbai

14th January 2014

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last mont i asked the representative abt this , they said ,u have sign a contract it has clearly written that ther will b delay in possesion ,now i dont know what to do i am thinking of going to consumer court

Vicky Paikade, Apartment Resident

15th April 2015

Hi Amit et all, Any updates on this issie.

to_vdverma, Apartment Resident

27th October 2013

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Hi, I have booked a flat in Casa Rio. After all the delayed commitments my possession is said to be in August this year. Can anyone of you share the possession letter from lodhas for my reference? How is this initiated?

Mildred D'mello Coutinho,

3rd June 2013

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I have booked 2 flat at Ignis A, and am hoping for possession in May 2013. My email: ryan.gupta@gmail.com

Rajan , Apartment Resident

19th March 2013

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rajan, I don't think it'll be ready by May2013. I'm staying currently in IGNIS-E. I see that all the 18 flrs have been completed externally. But the flats might not be ready internally. Better to confirm from the builder and plan accordingly.

AMIT PATNAIK, Apartment Resident, Mumbai

25th March 2013

what happen Mr Patnaik we people was planing to take some legal action but i can see you are already got possession................

Hemant Yadav, Mumbai

4th April 2013

Mr.Patnaik , Good to know that you have already taken possession.Can you share with us whether you paid Lodha's as per their increased charges OR you were sucessful in fighting them on the old agreement c
charges.This input of yours would be very helpful for us who are looking at obtaining possession.

Rajesh Nambiar , Apartment Resident

24th April 2013

I think it would be a good Idea to share your emails so that we can can in touch further to get our contact nos. I can be accessed at sraj2099@gmail.com

Raj, Apartment Resident, Mumbai

24th January 2013

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Guys, since a lot of people have the same kind of impression on the trouble created by LODHA to the LODHA Splendora (formerly CASA UNIVIS) buyers and more people joining this forum I think I agree with people who think we should take it to a bigger level. We should conduct a formal meeting and collect the grievences of all the buyers together and discuss the steps to handle those. Please have your suggestions.

AMIT PATNAIK, Apartment Resident, Mumbai

21st November 2012

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Hi Amit, I think its a good idea. Let me know the details for a formal meeting.

BK, Apartment Resident, Mumbai

27th December 2012

Hi Guys,

I found this blog very useful. I booked a flat in CASA UNIVIS CEILO in 2009 and as we know it is far from posession stage. the posession date has been moved 4-5 times now (the revised date is May 2014).

Unfortuantely I am outside India so I am a bit constrained with what I can do.I am very keen on joining any group/forum to take this fight with Lodha on all the issues discussed in this forum. I will appreciate if one of you can share either your contact details or any forum/group details so that I can also join.

I think unless we make this initiative big enough so that it impacts LODHA, we will not get desired results - so more owners can join, better it is for this Group.

BK, Apartment Resident, Mumbai

8th November 2012

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Hi BK,

Did you receive any letter from lodha ???

Hemant Yadav, Mumbai

12th November 2012

I have recieved an email response but no letter yet.

BK, Apartment Resident, Mumbai

27th December 2012

Hi Guys, Please find a valuable link in the Sales Tax website, MH where we can find a clear information on the MVAT and FAQs. Select the link "New FAQs in respect of developers with basic information". The website URL is

AMIT PATNAIK, Apartment Resident, Mumbai

29th October 2012

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I do completely agree with Rajesh. This is not fare. While executing the contract It's been decided the maintenance would be @3.5/- and they can not just increase to whatever rate. And I feel maintenance @6.25/- is not justified to place like Ghodbunder rd. Also I do not understand why are they demanding the Club charges now since none of the amenities are ready. I've visited the site 20 days back. They entrance road to the buildings are also not yet ready. I think all of the flat owners who have received the possession demand letter should meet up and decide on the excess maintenance charge imposed on us.

AMIT PATNAIK, Apartment Resident, Mumbai

26th October 2012

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I too have received the same letter. Need to check on the legal aspect on the additional Service Tax & MVAT charges on Club, Society, Infrastructure & other charges. Has anyone checked on this?

While on the new CAM charges @ Rs.6.25/-, I have flatly refused to pay. Legally & contractually we are only liable to pay @ Rs.3.50/-.

Rajesh Nambiar , Apartment Resident

17th October 2012

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So far we got to know that everyone is in opposition with the unfair demand of the builder regarding MVAT and denying paying the compensation. My agreement clearly mentions that the builder is liable to pay the compensation. Another news is that I got the possession demand letter for my flat (IGNIS E-1504) and there're a lot of shocking surprises out there. The Builder has charged MVAT and ST on Club, society, CAM and Other charges which are illegal. Another surprise is that they have increased the maintenance @6.5 /- per sqft against @3.5/- per sqft which is mentioned in the agreement. Also the possession demand letter doesn’t mention anything ‘bout the OC. I’m not taking the possession until the OC is received for my flat and the builder agreed not to charge any late payment fee for this. I’ll go to MCHI, Thane office and file an RTI for the MVAT % and seek help on how we can take against the builder for the violation he is doing based on the sale agreement.

AMIT PATNAIK, Apartment Resident, Mumbai

15th October 2012

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I agree with Hemant. This is the reason I've started this blog so that we get to know more people and their interest in the issue. And I got some people who are really interested in this movement. They did contact me and we’re in talk with each other. We need some concrete plan and have some kind of meeting and ask other people to join us, share their views. I agree this is a long process but nothing is that long and difficult unless we start early. Since the possession of IGNIS has been started we can take initiative and set a mark so that other clusters do not have to suffer. From my side I’ve filed RTI at Sales tax Department, Thane for the applicable MVAT and ST and the components (agreement value/total cost of the flat) on which it is applicable. Once I receive the RTI reply I’ll share with all of you and show that to builder. If builder doesn’t revert the charges then we have a strong case against him. Please share if anyone has taken any initiative.

AMIT PATNAIK, Apartment Resident, Mumbai

15th October 2012

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I have my flat booked in tierra : d and I'm facing similar problems please get in touch .tushkki85@gmail.com

Tushar Malik, Apartment Resident

27th April 2013

First of all ,at this stage , we have to unanimously oppose any additional cost escalation(Whatsoever) demanded by the builder.This is against the contract & the law would be in our favour .However,unless this opposition is unanimous,it would not be effective.

Rajesh Nambiar , Apartment Resident

13th October 2012

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I too have got an email from Lodha telling me that there is no compensation payable as the delay was on account of non availability of sand and labour and clearances from authorities. This is very unfair on their part.

Vikram Singh, Apartment Resident

12th October 2012

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In my personal opinion ,it would be wise to first take up possession & secure our Investment then collectively launch a case on the builder for compensation.

Rajesh Nambiar , Apartment Resident

10th October 2012

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I agree with you Rajesh. This is indeed what I intend to do. I’ll take the possession only when the OC will be issued to my flat. But I heard from one of the fellow owner from IGNIS that they are now charging 6/- per Sqft as maintenance whereas in the agreement it was mentioned as 3.5/-. This is something which is not accepted. Anyway I’ve started the process for Consumer court. I’m awaiting the possession demand letter. I’m gathering all written communication, agreement copy, RTI documents (awaiting response) and receipts as evidence.

AMIT PATNAIK, Apartment Resident, Mumbai

12th October 2012

Hello All,
Even I also book flat in CIELO since 2009 and till now there is no hope for possession. i send then mail about compensation. we have to join hand together and fight for this.

Hemant Yadav, Mumbai

12th October 2012

Hello All,

Why don't we sit together and decide what we can do or what could be done because while sending blog is not proper solution for this.

If we have to do something then we have to get together and take advice of each other.

This could be find better solution.

Thanks,
With Regards,
Hemant Yadav

Hemant Yadav, Mumbai

12th October 2012

There's no calculation as such. It is mentioned in the Sale agreement that if the builder fails to handover the possession of the said flat after the completion of the grace period (6 months), the Builder on demand is liable to pay the compensation @12% of the amount paid by the buyer so far. Considering my case I've already paid 95% of the agreement/consideration value. remaining 5% is the possession amount which is yet to be demanded by builder. The actual possession was May2011 and the 6 months grace period ended in Nov2011. So the penalty period started from Dec2011 till the actual possession i.e. with the OC but the builder claims it'll be the fit-out possession which is without OC. That is again a confusion. So the compensation in my case @12% on the the 95% of the consideration i.e. 36 lacs comes around 4.32 lacs a year.

AMIT PATNAIK, Apartment Resident, Mumbai

5th October 2012

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Hi Deepak, Even I'm also staying on rent and as you said its really painful to pay EMI, rent, MVAT, ST, CAM etc etc. I won't take the possession until the OC is received as it's a legal permission to move into the new residence. As per LODHA it has already applied the OC for IGNIS and it may take max 6 months but can be received within 2/3 months. And LODHA has also confirmed they won't charge the delay payment penalty if you'll pay the final possession amount once the OC is received and this is legally true. Once the OC is received I'll pay the possession amount and move into my flat and continue the legal work with consumer court. We can get some more people to join the group, exchange opinion, form an association and present our case collective in the consumer court. So we'll have a stand and make it fast.

AMIT PATNAIK, Apartment Resident, Mumbai

5th October 2012

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Hi Amit, While I definitely want the compensation am not sure on not taking the possession without OC and without the settlement . The rationale is very simple. I am living on rent. The result of the cosumer court case would come at least 2 years. By that time I would have spent more on rentals then the possible compensation , i.e. if at all we get the decree in our favour. That too with all the inconvenience of shifting of residences since my landlord is not ready for renewal of contract.
I will continue my fight even after I shift to Casa Univis for the compensation.
Lastly can u let us all know the method you have used for computing the compensation ?

Deepak Dharma , Apartment Resident

5th October 2012

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Mine is IGNIS E-1504. I'm quite sure they are not giving us the compensation so easily. We've to fight. They even don't bother that they are breaching the contract mentioned in the Sale agreement by denying the compensation. We've a strong point here since in our agreement the clause is there. Are you planning to take the possession without the OC and the compensation? I'm not since the compensation itself comes around 4lakh and I'm not going to loose that. I'm only waiting for the possession demand letter and then I'm planning for the Consumer court.

AMIT PATNAIK, Apartment Resident, Mumbai

4th October 2012

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Hi Amit,
What is your flat and wing no. ? Am from Ignis E 503

Deepak Dharma , Apartment Resident

4th October 2012

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Hi Amit,
I too was dealing with Karishma Shah. She confirmed me not once not twice but on numerous occassions that Lodha will be compensating for the delay in possession. She had confirmed the intention on Lodha's part but also confirmed that accounts department has finalised compensation amount as well.
Off course all this discussion happened over phone only. However, later on I was shocked and angry that Ritesh Ghai ( senior of Karishma Shah ) categorically denied having said so and replied to me that they will not be giving us any compensation as delay is due to non availability of sand and delay in approvals from authority.
I have asked them to prove me the said delay and have told them that this is wrong. I have been writing mails to Directors of Lodha group and have decided to write them one mail on a daily basis asking for compensation as well as roll back of unilateral hike in CAM charges.

Deepak Dharma , Apartment Resident

4th October 2012

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Thank you Sagar and Mohan. I think now the only way left is the legal way. Because once we pay the possession amount and take the possession the builder is not going to give the compensation. That is the reason I'm planning not to pay the possession amount and once I receive the demand for the possession I'll file a complaint in the Thane Consumer Court with all the relevent documents. I hope all the Casa univis owners will face the same issue. So why not join and work together and we'll get this thing done. We welcome opinion and suggestion from other people and flat owners and if possible we can meet or talk.

AMIT PATNAIK, Apartment Resident, Mumbai

4th October 2012

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