How to resolve penalty issue with builder.

Q: I am having a flat in lotus boulevard no idea. I have been waiting for the builder to handover posession of the flat since Feb 13. ThE builder is to pay penalty for delay in handing over posession as per the agreement. Though there is no clause effecting penalty due to delayed payment of an instalment however the builder is indicating dependency of penalty on timely payment of all instalments. Also he is invoking force mature clause for work held up due to issue with NGT. Requested advice on what should be done to get maximum penalty benefit.

Shailesh, Delhi

28th December 2016

Residential Project Review in Noida

delay in possession

delay in completion

delay in possession of flat

penalty for delay construction

penalty issue with builder

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Replies (5)

Thanks for ur response

Shailesh, Delhi

28th December 2016

Comment

Thanks for ur prompt update

Shailesh, Delhi

28th December 2016

Comment

Hi,
According to me, first take the possession and pay the money that builder is asking you to pay for delay installments and then file the consumer complaint in the consumer forum. It makes sure that you have possession and hence secured. And consumer forum is the speediest consumer redressal forum in the country now. So, you will get the right justice.

Giri, Noida

28th December 2016

Comment

Thanks Giri. Can the complaint be filed in the consumer redressal forum after taking over possession. While taking over possession it is possible that some portion of penalty is paid by the builder however it may not be complete as per the penalty clause in buyer builder agreement. Do let me know. Thanks.

Shailesh, Delhi

28th December 2016

Hi Shailesh!!
You can mail to authorize contact of builder asking about all the certification like NOC from the several govt. authority, completion, occupancy etc and if builder failed to provide you then you can issue stamped warning letter before filing court complaint including all your point which led the agreement to the path of dispute and you should also mention the consequences and details of claim in it, if builder is adding penalty for your delay payment.

Akash Kanojia, Delhi

28th December 2016

Comment

Thanks for the update

Shailesh, Delhi

28th December 2016

Hi Shailesh,
You can file a case in the consumer dispute redressal commission at all the three levels i.e the district , the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.

Pranay Malhotra, Delhi-NCR

28th December 2016

Comment

Hi,
If possession is not delivered on time, a purchaser can send a notice to the builder, claiming refund of the amounts paid along with interest and/or damages. The buyer can also file a consumer complaint for deficiency in service as defined under the Consumer Protection Act, 1986 against the builder. Recently, Unitech and JP Group have penalized Rs.3 croe and Rs.15000-20000/months respectively by the National Consumer Dispute Redressal Commission for delay in giving possession of its flat. A few months ago, a developer in Mumbai was asked to compensate buyers for delay in possession.

Shaunak Verdla, Mumbai

28th December 2016

Thanks for ur response

Shailesh, Delhi

28th December 2016