sir a have booked flat at suvention scheme scheme

Q: at the time of of booking company sale person told me that company have a scheme name subvention in this scheme company can pay all bank interest of bank loan till possession . at the time of agreement possession date is December bt project is delay . now company tell me that company pay only interest till December because he already mention in tripartite agreement that assume possession date is December . sir what kind of legal option i have now ? i have also a hand written document of company employ which show that emi start after possession. kindly guide

swapnil, Apartment Resident

18th July 2016

Legal in TATA Capitol Heights, Unthkhana, Nagpur

subvention payment plan

subvention schemes

advantages of subvention scheme

disadvantages of subvention scheme

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Replies (2)

Yes, you are right Abhishek.
Builder is trying to cheat him. A subvention scheme in which the homebuyer pays 10-20% of the price of the apartment at the time of purchase. The balance is paid by a bank to the developer as a loan under a three-way agreement between the developer, the buyer and the bank. While the project is under construction, the developer pays the interest on the loan to the bank. The bank disburses money to the developer as construction progresses. The buyer's EMIs begin only after he gets possession. So, i will only suggest you that plz. don't pay any interest to bank or the builder.

Kishore Pathak, Mumbai

18th July 2016

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Yes, and If the developer delays possession, he has to bear the interest burden for a longer period or he gets the balance payment at a later date. But in this system, the risk was on the buyer as the loan was on his name.To reduce these risks, last year, the RBI directed lenders to disburse loans according to construction milestones.

Abhishke Karule, Mumbai

18th July 2016

@Abhishek,
Builders usually try not to pay delay penalty mentioning odd reasons. This is, of course, wrong on the builder’s part which can be challenged in the court. But the builders have access to good legal resources and the buyer often shies away from taking a builder to the court.

Sunil Sharma, Noida

18th July 2016

Better, take the advice of a legal expert. Now-a-days, builders are very tricky and they put all the clause in his favor very few for the poor buyers. If you have written documents then you can file a complain against the builder for fraud case.

Abhishke Karule, Mumbai

18th July 2016

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