Delay in possession of flat
Dharmendra Joshi
(Querist) 06 October 2010
This query is : Resolved
Hi!
Three and half years back I booked a flat in a residential project at Ghaziabad.I had made 95% payment to the builder within 45 days from booking. 80% of which was borrowed from a bank under down payment scheme.As per builder-buyer agreement the possesion date of my flat was April,2009.The builder had diverted the fund to other projects/land bank, now per builder due to liquidity crunch the the project is delayed. Still only 45% work has been completed.
We have formed a group of 250 allotees out of 700 to fight aginst the builder.
Kindly help advise on below points:
What options we have to pressurise to the builder to expedite the construction process?
How much risk is involved with investment in such project? what worst we can encounter and how can I prevent them to happen?
May we get relaxation in term of EMI/interest rate from the banks.
Awaiting to your reply.
Thanks & Best Regards
pawan sharma
(Expert) 06 October 2010
Q.What options we have to pressurise to the builder to expedite the construction process?
A.you may file the suit for Mandatory Injuction to compleate the work.
Q.How much risk is involved with investment in such project?
A.50 to 60 %.
Q.what worst we can encounter and how can I prevent them to happen?
A.follow answer 1.
Q.May we get relaxation in term of EMI/interest rate from the banks.
A. No.
Devajyoti Barman
(Expert) 06 October 2010
You made a big mistake by paying so much money even before the there was any decent progress in the construction work.
To expedite the construction , you can file a complaint before the consumer forum to obtain necessary order and damages if any.No relaxation would be given for the delay in construction.
Dharmendra Joshi
(Querist) 07 October 2010
Hi Hon'ble Panel,
Thanks a lot for your quick and valuable reply.
Seeking for your advice on below points:
What is the procedure to file the suit for Mandatory Injunction to complete the work?
How much effective would it be to pressurize builder to abide by the builder buyer agreement? What should be the ground and objective of this suit?
Would like to make it clear that we like the builder to complete the project, we don’t wish for refund of our money since as per builder-buyer agreement we will get money with only 8% interest/annum, also the booking amount (10% of total cost) would be deducted.
What would you advise to proceed it in a group OR individually?
Since as per builder, currently he has enough assets to complete his project, we are not sure why not he liquidates them to complete his projects. However; we are apprehensive that there might be some legal issues with his assets which prevent him to sale out them, or he might be waiting to get right value of those assets, or there might be a possibility that builder going to divert the money, whatever receives from those assets, to somewhere else. Kindly help advice how can we assess the actual scenario?
What can we do to force him to liquidate his assets to ensure adequate cash in-flow into our project?
How can we prevent him to divert money to somewhere else (if he intends)?
The builder has confirmed us that he will give us penalty for delay in possession that would be @ Rs 5/sq feet/month. But we feel this is not an appropriate compensation, since we are paying much more interest to bank. Kindly advice how much compensation should we claim?
Should we file a complaint before the consumer forum to obtain necessary order and damages and simultaneously a separate suit for Mandatory Injunction to complete the work?
Thanks in advance for your valuable suggestion.
R.Ramachandran
(Expert) 07 October 2010
Dear Mr. Joshi,
For filing the suit you have to necessarily take the services of a lawyer. As such, don't bother about the procedure. The lawyer will take care of the same.
