Filing a lawsuit against a real estate develope

Jitendra (Querist) 23 October 2014 This query is : Resolved
Hello,
I bought a flat in Gurgaon by one of the famous real estate firms. The township has 5 blocks-A, B, C, D and E. My flat is in C Block. I bought it in 2010. The builder collected 30% of the money as well as 10% more (total 40%). The last installment of 10% was to demanded only at the commencement of construction. But the builder never started work in my tower.In towers A and B, the structure work is almost complete but there is no worker on the site since last 1 year.

As per the agreement, the builder was supposed to hand over my flat in 2013 but in my case, the construction never commenced. After much negotiations with the builder, the builder is willing to issue me a letter which will state that i will be entitled for the discount equivalent to 11% interest rate on the excess 10% installment that i had paid.In addition, the builder will also pay me delayed penalty of Rs.10 per square feet per month.

Now if i approach a court, what all options i can demand. I am not satisfied with interest rate on my money because that amount i would have earned even if i had deposited the money in my bank account. I can not ask for refund because whatever money i will get, I cannot purchase the new property because prices have gone up since 2010 and it is impossible for me to purchase a new flat.

I want my flat as soon as possible and the compensation also. What will you suggest to me?

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ROHIT SHARMA (Expert) 23 October 2014
Dear Mr. Jitendra,

1. Be tactful and prudent.

2. Have such declaration made by the builder as it would bind him for performance of such declaration.

3. The rate of interest since being the same had you deposited such 10% amount of your last installment in a Bank and the additional penalty amount offered by the builder would in addition secure your further interest components.

3. If you go in for litigation or seek refund you will be put to risk of unwarranted incurring cost of time and money.

4. It is better that you hold your investment as you will not be able to get another flat at the cost of what you have invested.

5. The builders too have their own financial constraints and i am sure they will commence the work soon in near future.

ajay sethi (Expert) 23 October 2014
1) builder has failed to meet his contractual obligations . although he was supposed to complete construction in 2013 he has till date failed to even start work on said project .

2) you can move consumer forum against the builder to seek directions to hand over flat within specified period .

3) in the alternative you can also seek refund of money with interest .

4) you can also seek compensation for mental torture you have undergone on account of failure of builder to complete project on time

Rajendra K Goyal (Expert) 24 October 2014
You can accept the offer of the builder or move to consumer forum to hand over the possession otherwise your investment with interest and compensation.