Is builder responsible for the delay he is doing?

Q: Think, is builder really responsible for the delay or you as a Indian consumer have encouraged him to behave in the way he is behaving.I would ask you if you were given money say 100 crores at the annual rate of 1.8% per annum with the condition that you should return the money by two years what would you do would return the money at the earliest possible or continue to pay the interest and find excuses for delaying the return so that you can continue to earn extra income from the interest you earn from the bank.

Ashwaane Kumar Singhal,

30th June 2016

Builder Review in Mumbai

delay possession of flats

possession delayed

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action against builder for delay possession

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Replies (4)

Dealer is not always responsible.

liyans, Kolkata

8th July 2016

Comment

Hi Saurav,

I am also in construction industry and am well aware of the problems faced, however 2 year for possession is quite a reasonable time because it generally takes 11-14 months to construct such towers but builder asks for two years, but here the questing is not of constructing it is all about collecting and using the money of consumer somewhere else which encouraged by the agreements that we sign.

Ashwaane Kumar Singhal,

30th June 2016

Comment

Hello sir!!
You are entitled to ask compensation for delay in delivery of possession by the builder. Since builder is charging you 18% interest if you delay making payment similarly he should also pay interest at 18% for delay in delivery of possession by one year. You can further move consumer forum against the builder to direct builder to pay you interest / compensation for delay in delivery of possession .

But recently, it is seen that court is taking action against these kind of builder and imposing penalty on them for delay possession. Most of the builders from Mumbai, Pune and Delhi NCR are penalizing by the court.

Vibhor, Delhi

30th June 2016

Comment

Hi Ashwaane,
Every time builders are not responsible for delay possession of flat. A delay in giving possession can be due to various reasons such as pending municipal approvals or some dispute. Or if property prices are rising, the developer may deliberately not give possession in the hope of making buyers pay more even if the agreement has been signed at older rates. This will not reflect in the sale agreement. Delays can also happen if the developer is out of funds, or the bank is not ready to finance his project.

Go and talk with the builder or visit project site and ask to engineer at the project site. Try to know the exact cause of delay. Then proceed further for legal action. Thanks

Saurav Mishra, Pune

30th June 2016

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