I had just paid him the 20% amount by cheque and there is no paper work / documentation for it apart from 2 print out receipts of which both the receipts just state the Flat No. and the cheque No. of the bank by which the TWO 10% booking amounts were paid by 15May2012. After this we just had visits to site and telephone calls about the construction work as for nearly 3-6 months there was no work in progress. Later he started the work again in last week of May 2013 and he called me in first week of June saying lets sign the agreement. Till then there was no issues and he never talked about any interest just the agreement. There was some loan issue of santioned home loan by HDFC so I said him to give some time to approach SBI and I will get back to him. When I got the SBI Home Loan sanction later in Sep13 and showed him the letter to proceed with agreement. he then said that he took a token amount from other party for the flat and will think if he needs to sell me or not. after 3 weeks of follow up he said he would sell me the flat only if I pay him the interest and will let me know the interest amount after calculation. He again took 2 weeks for calculation and calculated the interest amount since June2012 for his 98% completed work as 5.85 Lakhs as of today.
Let me know if this is right and legal and I really need to pay him this amount for buying the Flat.