Interest charged by builder on delay payment of demands
P.C. Joshi
(Querist) 03 October 2016
This query is : Resolved
Dear Friends,
I booked a 2BDR flat in Noida Extension in Sep 2012 and now I have got the letter for fit out/possession. The builder has sent me demand letter in which he has charged me Rs 40000 towards interest @ 18% on delay of various payments.I have checked and found that in builder has ignored the delay caused by bank who has finnaced me as the disbursement was delayed by bank for want of some formalities to be fulfilled by by the builders. then there was a delay due to wrong demands sent and the builder has ignored the transit delay.
I want to know whether is any point if i file a consumer complaint against the demand of interest on the following points.
1. Delay caused by bank
2. Transit priod has not been considered in computaion.
3. Challenge the rate of interest
4. Why not the builder has claimed the interest when the delay was caused or even not charged the arrers of interest in the subsquent demand letter. Some of the interest is time barred(ie. more than 3 years)and builder is taking undue advantage now at the time of possession and not giving NOC without clearance of interest demand.
5. Already caused due to recession in the property price and builder is causing extra burdon.
Please advise whether it is worthwhile to file a complaint in a consumer court.
Thanks
P.C. Joshi
Guest
(Expert) 03 October 2016
The mix-up of your queries do not indicate whether you want to file case against the bank or the builder or both.
However, about your description, it may be pointed out that the builder can be considered to be concerned with the payment by the allottee of the flat, not a third party like bank.
Advocate Bhartesh goyal 
(Expert) 03 October 2016
You can file complaint against builder before Consumer Forum but against Bank.your complaint is not maintainable as no relation of Consumer and service provider exist between you and Bank.
Rajendra K Goyal
(Expert) 04 October 2016
Regarding charging of interest and rate of interest, refer the tripartite agreement among you, Bank, and the builder. Also refer the sale agreement. These two documents are main to decide actual position.
1. If there was extraordinary delay in release of installment /after completion of formality Bank can be held responsible.
2. Write to Builder to consider it. Broadly builder consider the date on which it receives the amount.
3. You can challenge, if charged against the agreement.
4. Builder can ask arrears / interest at the time of final settlement. The installments are being paid, if last installment was paid 3 years back interest claim can be time barred.
5. In such situation, why builder should leave such extra source of revenue.
P.C. Joshi
(Querist) 04 October 2016
Thanks all for sharing the views.
Dear Mr R.K. Goyal, last instalment is claimed now only but few of the instalments on which interest claimed are over 3 years. My point is if the builder has not charged interest then it is a strategy to pressurise the buyer. Secondly,the builder has charged the interest from the date of demand letter till the date of receipt/credit. My point is why should I bear the interest for transit period and the builder has not consider the grace period of 15 days which is allowed to pay. In the demand letters he has mentioned that if the payment is not made in 15 days then the interest will be charged for full period. Even so,is it not an unfair trade practice and is a builder allowed to make money from the interest. Can I take a plea to prove the rate of interest and whether where was any loan at all for which interest has been taken. In ordinary course of business,no one pays interest.
Rajendra K Goyal
(Expert) 04 October 2016
if the payments are being made, the claim does not become time barred. He can not charge interest from demand letter date, but from the due date for payment mentioned in the letter.
for transit period interest, refer tripartite agreement.
You should write to builder regarding waiver of interest, if charged any, away from the agreement.
Can also move to consumer forum.
