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SJS (se)     23 May 2012

Consumer court for delay in possession of flat

Hello Members,

I had bought an apartment of Rs 43 lakh in March 2007.
The price was inclusive of Registration cost on actuals.
The possesion was in 2008 September.

Till 2008 March I made payments as per the schedule.
By 2008 March, I made payment of 90% asking them to complete my apartment first.

Now it is May 2012 and the aparment is not yet finished.
They have completed other apartments in the building.

The builder was supposed to do the registration at 85% of payment and he has not yet done the registration.
Now the registration cost has increased.

I want to somehow get the apartment completed, registration done and start staying there.

My questions are as follows
1) Can I go to Consumer court when the registration of property is not yet done in my name.
2) Can I go to Consumer court after taking registration but before possession.
3) Can I go to Consumer Court after taking possession.
4) Can I stay in the apartment when the court proceedings are going on.
5) How long does the consumer court proceedings continue and how often is the customer to be available.
6) What is the approx cost of the proceedings.



 13 Replies

S Jadhav 98336 98330 (Jadhav & Associates)     23 May 2012

Where is the apartment ?

Are you staying in the house or having possession without the builder having completed it ?

If you can get the registration done then it means that you and the builder have a working relationship. If he is ready to get the agreement registered your case will be stronger but remember that the Court will relaise that you have registered the sale despite knowing the history and non-completion.

If the builder has completed other apartments then it appears that you are talking of the interiors being incomplete. Has the Builder got the Occupation Certificate for the building?

You can approach the Consumer Court. They are reasonably speedy. The charges are nominal and you dont have to hire a lawyer. (you can represent yourself and it is encouraged so).

S Jadhav


1 Like

SJS (se)     23 May 2012

Thank you Mr. Jadhav for the clarifications.

shankar (self)     16 June 2012


My Name is Shankar and I have purchased a FLAT in HLF builder in Bangalore on 1st floor with the Built up Area - 1374 Sq.ft and SBA 1650 Sq.Ft.

My Agreement was done -  21 st ,Jan, 2010
Possession Date As per Agreement - Dec,2010
Current Situation - Not yet giving the Possession Date.

A TRI PARTIE Agreement i.e BUILDER, MYSELF and SBI BANK in Jan 2010 was done, Till Date my all EMIs are going correctly around 40K / month
We had only “Agreement To Sell” done and did not had any "Construction Agreement". So my sale agreement says to pay 51,11,500/- (Total)- According to the FINAL Cost Sheet and it has break up as - 
Breakup of 51,11,500 is  :
49,11,500/- –> is towards(Basic Price+1 Covered Parking + BWSSB and KEB + Club Membership)
  2,00,000/  –> is towards(Registration + Stampduty) - Yet to be paid to the govt, as I am waiting for registration.
Further Breakup of 49,11,500 is  :
24,36,500/ -  –> is towards component of undivided interests of Land AND
24,75,000/-  –> is towards Apartment and Other Facilities.

Total Agreement Value: 49,11,500/-
Amount already disbursed till date:46,65,924/-
Amount to be disbursed:2,45,576/-
Maintenance Charges:79,200/-
(Total amount to be paid: 2,45,576+79,200+ Registration and Stamp Duty)
Registration and Stamp Duty: As applicable

Disbursement to the builder from bank are as below -
2-Jan-2010 -    2 L - Cheque
17-Jan-2010 -  3 L - Cheque
12-Mar-2010  22 L - SBI gave 
21-July-2010 -75,924 - SBI gave 
31-july-2010 - 18.9 L - SBI gave
Total Amount Paid till date is - 46,65,924/- 
Pending Amount of (i.e. 2,45, 576/-) + Registration and Stamp Duty.

My agreement says only to pay 49,11,500/ + (Registration+STamp duty+ Maintenance Charges). Now  I am asking for registration of the flat and the builder is asking to pay extra Govt. Levies@ 6.5% of 49,11,500 (i.e 3,19,248/-) + late payment charges of(Rs 2,06,628/- @ 24% per Annum on the outstanding Amount that i delayed). This delay charges are because disbursement got delayed from BANK. The builder did not send any  demand letter to the bank to disburse the amount and there was no progress in the construction. There are no amenities ready like swimming pool, lift, Gym, Club House, Parking Slot, Hi-FI DG set, Sewage Plan, Electricity lines coming into the premise and the builder is also asking to pay Maintenance charges before doing the registration.

I Have Following things to ask you - 
1. I didnt had any construction Agreement done, I had only "Agreement To Sell" done, but still am i liable to pay VAT and ST?They are charging me 4% VAT and 2.5 % Service Tax (i.e. 6.5%) <Should i Pay this>?
2. They are asking me to give a letter saying i have some financial problem and they will waive off this 6.5 %. <Is it OK to give this letter via EMAIL>? 
3. The Possession Date is not unique for ALL 130 Flats, Can it be different? As the construction started in 2005- 06 and there are few cases gone on Consumer Court? How does this helps me?
2. The possession is not yet given, But seems like it may take 3 months from now on. <Do you want me to still wait for this, Pay the due amount then file the case OR else i should file a complaint now?>
3   Do I get compensation from Consumer Court, if i go there for Mental harassment/ Egony? If So how much I will get?
4.  My Wife was carrying and i went really through Vain which cant be expressed, it has impacted on my kid too and this has put me more in stress.
5.  How much time will it take to settle this in consumer court ? I am in Bangalore now.
6.  And does Consumer Court gives decision to take Possession, I heard from some people like it doesnt do that? <Is this true>
7.  The receipts which they had issued me earlier didnt had VAT number on that and on request to they dont Provide me the VAT number, Is this OK?
8.  I got clarified from TAX dept that builder comes under COT system "Composite Tax Payer" and  he has given the construction to 3rd Party<Do i need to Pay any Taxes, if So can you please tell me How much should I Pay VAT and ST for this>
9. Can i file a Case on "Fraud" under IPC section 420, As he has mentioned about  minimum  amount 50K in Cost Sheet break up, But now why the builder is now referring to some clause in my Agreement and asking to pay extra   Govt. Levies@ 6.5% of 49,11,500 (i.e 3,19,248/-) at the time of registration and delaying the registration process ? Why he didnt do that at the time of Booking? <My question is Why this huge figure was NOT CLEARY SHOWN In the COST sheet as these were 
prevailing TAXES and the builder would arrived to these figures earlier itself?
Note - Govt Levies 6.5 % clarification was given after several requests and phone calls - After sending lots of email to him was clarified saying it is VAT and ST, which is not mentioned in my agreement.
10.  If i am Liable to PAY any VAT/ST under any section, Then can you please let me know the TAX calculation as of today, I didnt get these figures despite meeting the TAX officers in Bangalore offices. The just generalize the statement and give it.
          a.  if the Builder is "Composite Tax Payer"  then - Under Section - 15 KVAT - What should
               be the Amount of Tax to be Paid by Me ? < I want this in figures>
          b.  If the Builder is under "Regular VAT" method @ 12.5% - - What should be the Amount of
               Tax to be Paid by Me ? < I want this in figures>

Thanks in Advance for Helping, Please provide me the inputs and based on this i would go accrodingly.

Shankar S

S Jadhav 98336 98330 (Jadhav & Associates)     20 June 2012

Dear Mr. Shankar,

You have put the facts in perspective very well. I wish you had also realised that with respect to any immovable property any transfer of rights including ownership has to be done only by registered documents which means that even the agreement to sell should have been registered by you which you have not yet done.

1. All sale/purchase related to immovable property not on properly stamped and registered documents cannot be brought in as evidence to confirm you title. So you will not be able to prove that you have purchased the flat as you unregistered documents.

The tripartite agreement that you mention between the bank, builder and yourself is only a loan agreement and it relates to your repayment of the housing loan and in case of default by you, the immovable property would act as a collateral.

So your case is weak in so far as your title to the flat is concerened.

2. The service tax and VAT is to be paid to the government and you can pay it directly instead of paying it to through the builder. The builder says that he can waive this off. This is because you may not be liable to pay these or he is paying it from the money he gets from you.

The possession date can be different for different flats as the builder can handover the flats on different date.

3. You have mentioned about mental agony but these kindof issues are quite normal in such a transaction. However, delay in handing over with respect to the date of handover mentioned in the agreement can be complained to the Consumer Court and you are likely to get some compensation.

The consumer courts are reasonable quicker as compared to the civil courts and they work on principles of natural justice for consumers. The amount of compensation will be calculated bythe court on the basis of the loss to you as per their judgement.

4. As you have stated that the delay is from the Builder's side and not yours so you should not pay the delayed payment charges unless you are satisfied that the delay is due to you. also you should ask for compensating you for the delay by the builder in handing over the possession.

5. the Consumer Court process is simple, less time consuming and inexpensive and it also looks into the matter of possession and its delay. Only issue in your case is that you do not have a registered document.

6. My advice would be to not go to the Court when you feel that you can get the possession within 3 months and the builder is ready to register the agreement at the earliest.

7. The VAT earlier was set off against that paid by the builder but in Maharashtra, the State Government has made the calculation easier by making it staright 1% of the agreement value(not including Stamp Duty, registration and other charges such as parking, etc. ) so please check what is applicable in Bangalore.

8. do not go for filing of fraud, etc. unless you have the money, time and effort since many times in life as long as you are not doing a crime, it is better to be practical.

S Jadhav




Sandip Patil (service)     29 November 2012

Hello Mr. Jadhav,

I have purchased a flat in Pune and Builder has delayed the possession of flat by 8 months. My flat is now ready for possession but he not ready to pay compensation for delay in flat possession.

I have paid him all (90%) amount as per the agreement and now final payment of (last 10%) is due as he has sent the possession letter to me.

So should I pay final demand and take possession and then approach court for issue with compensation for delay.

or should I hold my last payment and approach court. But in this case if court take long time than builder can charge interest on 10% amount that I would hold.

Please advice. Can I hope for justice from court ?


Sandip Patil





Aneesh (manager)     01 April 2013



I have booked a flat in Tilak Nagar, Chembur in 2008, it's a redevelopment project and as per the agreement between the builder and old tenant's the builder would build two buildings in the compound one for the old tenants which would be of 9 floors and the new construction will be of 12 floors.

I have booked in the new construction project and as per the agreement the builder was suppose to provide possession in March 2011, I have booked my flat in 6th floor and registered the same.

In between the builder took a FSI to build 16 floor building instead of 9 and 12 floors for which the old tenants objected as they were not been compensated for the additional floors and also the same was agst their will, as the builder was not accepting the same they have filed a suit agst the builder.

The builder stopped the construction at sixth floor and the construction came to a stand still.

A decision was passed in the month of Feb 2013 by the arbitrator stating that the builder was wilfully delaying the possession and will have to build 9 and 12 floors as agreed and compensate the old tenants for delay in possession by a penalty of Rs. 1000 per day till the date of possession and an interest of 12% for delay in payment of compensation.

Considering this will resolve the issue and the builder will at least start the construction, our hopes were drained out noticing that the builder is still not showing signs of starting the construction for which we have paid more than 70% value. Nor the builder is ready to commit a neither time frame nor compensation for the delay in project.

This is a case very common in an area like Tilak Nagar, Chembur where in most of the building are under construction and have come to stand still due to unprofessional and fraud builders.

Can I approach the consumer court in order to protect the interest of the investors who have booked flats in this building.

Will I get compensation for the money which have been paid to the builder how ever there is no possession till date nor any positive hope to get possession few years down the line.

As per the agreement if the buyer intends to get the money back the same will be returned by the builder @ 9% rate of interest, however at the time booking the flat and till today the property rates have more than doubled due to which even if I go for this option I will not be in a position to purchase a similar flat and also the builder is very well wanting the same as he will re-sell the flat @ today’s price and earn double profit by selling the same flat again and again.

The builder is neither answering our phone calls nor ready to come down for a meeting

I have gone through many website and found that buyers need to incorporate property delay clause in the agreement in order to get compensation for delay in possession. In my agreement there is no such clause.

Will I get justice in consumer court , there are many other tenants who have borrowed loan from the bank and booked flats in this building and paying heavy interest and still denied possession till date.

Nitish Kumar (Reservoir Engineer)     16 November 2013

Dear Law Gurus,

I bought a flat and got it registered in September 2013.

The builder has promised flat handover in April 2013 but did not complete the flat till date. Though we got it registered because of our own personal issues.

The flat still has no lift instead of two promised lifts. It has no proper power supply as well.

The builder is not supportive and doesn't pick the calls and is delaying everything (like provision of basic amentities like lifts, parking space allottment etc.) indefinitely.

What is the way out ? can I complain in consumer forum ? If yes, under witch section of consumer forum law ?

Thanks in Advance,


Kawaljeet Singh (General Manager)     17 December 2013

Dear Sir,

In response to builder's advertisement appeared in “Hindustan Times “ (Live) dated 10th October 2010 stating  possessions by early 2011, undersigned approached  and  visited the site office of builder and met  sale representative of the builder with intention to purchase an apartment. As per the site condition at the time of visit, main RCC structure along with slabs for towers were complete. It was visualized that in the event of any delay resulting in over shooting of the advertised schedule, possession by maximum end 2011 was anticipated under all circumstances. After having a look at the sample flat it was discussed for the cost. The cost quoted by the sale representative was beyond the stipulated budget as such undersigned returned back with hint of my budget to him. The sales executive assured of feedback after discussions with his seniors on the price indicated by me. After discussions with his seniors he visited my residence with a proposal which was still beyond my capacity and was rejected. On 27.11.2010 we were called to the office builder for further negotiations with senior sales person of the builder. We were firm on over bid and the same was also communicated through E- Mail. There was a proposal (E-mail) also from them for acceptance of our quote with condition of 50% upfront payment. Understanding my inability it was not accepted and I wedged to my quote as last offer with clear intention of withdrawing beyond that. However With a hope and as a serious gesture from or end we handed over account payee cheque toward booking amount to builder with clear instruction to present if and only if our quote is acceptable with deferred payment plan. This was indicated to be full and final settlement from our end toward the cost of apartment as a complete unit with stamp duty extra or return the cheque otherwise. After a gap of few days, the cheque was presented by builder for payment and a receipt No. 962 dated 03-12-2010 was issued.

There after the builder was approached for signing of agreement as it was required to go for Housing loan form LIC Housing Finance Limited. Agreement is mandatory as part of documentation for sanction of loan. It was made to understand by the builder that agreement could only be signed after 50 % payment is effected toward the cost of the unit. On going through the draft agreement, undersigned approached sales people I was dealing with on some of the clauses stated therein which were in total deviation from the conclusion made at the time of deal and in no way as per the terms mutually agreed and settled. It was resolutely cleared by both of them that they respect and adhere to terms agreed with you. This agreement just being a formality to facilitate sanctioning of loan from the financial Institutions and is a standard printed material and there is no need to worry about. After repeated firm assurance from both of them and also in view of our desperate requirement for sanction of loan, 50 % payment was arranged and signed the paper as such on dated 12th February 2011.

After a lapse of time observing the pace of work on ground, undersigned approached the builder personally and conveyed through Emails also concern over very slow progress of work with completion in no way as advertised and even much beyond that. Surprisingly there used to be no return mails but only verbal assurances which were in no way proportional to actual site conditions.  Initially considering delays as anticipated in any civil works some how it was taken lightly. But it became a matter of concern when nothing was clear till end of 2011 and even beginning 2012. We started visiting and communicating with site staff, responsible persons in their registered office at Chandigarh and communicating through E-mails conveying our concern over these inordinate delays and for time schedule, but there used to be no response or satisfactory reply. Rather their accounts department approached us for running payments. The situation became disturbing when we were asked for payments beyond the plans and some other payments too (for the electrical panels and service taxes etc.)  inspite of the fact that the deal was closed for cost of the unit as a whole. On contacting concerned sales persons and reminding them of assurances made initially and failure of internal coordination within their office, they could not respond appropriately and tried to overlook the issue. There was no response to these e-mails, even they used to avoid personal meeting to discuss on the matter and tried to convince in one way or the other through irrational reasoning. The matter being still undecided we were pressurized to make the payments even for the stages of construction which were neither started nor  previous one completed on pretext of cooperation from our end for completion. Even they issued demand letters for us to approach LICHFL for release of payments against those stages which were yet to start.

With last payment of installment on 05-12-2012 the builder already have 95 % payment. It was to be made on completion of all services with in the apartment with remaining 5 % on possessions.

In between we approached with the proposal of changing allotment and shifting us in the blocks where the construction was complete and few families already moved in but it could not be materialized.

With main structure and RCC work completed two years back, the remaining activities are almost at a standstill. Due to unknown reasons the over all condition of Block is like an abandoned structure. Various internal works such as wall tiles, Internal Plaster, Flooring, brick work, Electrical and other internal finishes along with services are either not started or left incomplete. With all scaffoldings in position for now about two years completion of external work of the block is no where in site. Stairs and entry to the flat is still underdone with unsafe access to the apartment. Every time on being contacted there is an unresponsive reply of completion within 2-3 months with nothing actually moving on ground and this is happening for almost two years.

I am facing a financial burdon of installments of housing loan, rent of present house along with lot of mental agony. Please advise hoe should I proceed.


Kawaljeet Singh

dinesh (abc)     28 January 2014

I have booked a Flat in Jaypee Sports in the Project " The KOVE" situated on yamuna expressway, Greater Noida in the month of Dec 2011.
Invester Clinic agent Yogender promised me that this is the Golden project and shown me so many dreams about the project.
At the time of booking my agent told me that I will get the flat in 2 year's.
But when I received a PAL from Jaypee I came to know that it will take 42 months.
I Immediately visited to Jaypee office for cancellation of the flat.
But they told me that if I want to cancell this flat then 10% of the total cost of that flat will be forfeited. Then I have made 55% payment of the flat as per demanand letter.
I have booked the flat for my personal use. I am currently living in INDIRAPURAM and paying rent.
My agent suggest me to book this flat in Partial down payment plan.
I have paid approx 17.5 Lacs. Now I am in a situation where neither I have money nor I have flat.
I have visited many times at the site and did not find satisfactory result. After passing 2 year's even 1st floor is not constructed for my tower.
Can someone please guide me how I can get my money with interest from the builder.


Dinesh Sharma

Khalid   25 July 2015


I Hv booked a flat in a re development project in the year 2012, for which i hv already given total amount of 22,00,000/- lakhs. And the total flat value was 48,00,000/- + Stamp duty registration.

After 2012-13, the development got stuck and we could not get the possition for the same.

Kindly advise how to go about. Presently he is delaying by saying that there is no clearance from Airport authority due to which the project is stuck.


Kindly advise how to go about as we need a house very badly.



Khalid vasaikar



paul   08 August 2015

Dear sir, I have registered a flat in Pune for 19 lakh on 2012 but after 3 years the flat is not completed. We have paid 95% of the amount. We are done with the registration. The builder have completed 90% of the project. But now he don't even answer the calls. Whenever we asked him for refund, he says that he has no money. Please give me some remedy. Now my condition is I don't have any flat and I have to live on rent.

Ranu   02 October 2015

I booked a flat with Omaxe Developer in Greater Noida in 2008 & same was supposed to delivered in 3 years time but till date developper in not delivering the flat.Now since I am moving out of country I asked them to settle my dues and give me delay penalty as on date.After months of followup builder is just playing around and assuring that flat will be delivered in next few years and they can not give the delay penalty,settle dues as its their policy to delay construction but not pay any delay amount,Below is the letter Ive given the builder few months back and their customer service is totally denying any delay penalty/or near term possession after 7 years of construction linked payments Ive done to them

Omaxe Build Home Ltd.

Omaxe House , 7 LSC Kalkaji


Ref : Early closure of my dues ; Ref xxxxxxx


Dear Sir/Madam

This is with reference to our booking in Omaxe Palm Greens. We will be moving out of country for few years and with reference to this relocation , We visited the site last week & were told that earlier possession date of October-2015 is being revised & it will be six more months before construction is completed. To avoid/minimize our international travel due to change in date of possession we would like to complete as many steps while we are in India for next few weeks. I would like to pre-pay my future dues (after adjusting delay penalty in my final  payment)

As per my allotment letter signed on 08/10/2008 delay penalty is applicable after 36months from the date of allotment, till unit is handed over. However due to my relocation I would like to waive-off any delay penalty after this date & request you to raise a demand letter for advance payment to settle all payments after deducting delay penalty as on date & allow us to complete all paperwork that can be completed as on date.


I had asked them to sign/stamp receipt of this letter which they did but denied any action.What's my legal recourse in this matter?

raja sen   12 October 2015


i have purchased one under construction flat which will suppose to deliver me on sep-15 but now builder is saying it has to be completed on sep-16. In this we can not claim for income tax benifite against my EMI until and unless he issue a possession letter to me. I discuss my issue with builder , he replied that he can issue a under constrction flat posession letter for ful fill above mentioned requirement in this i need not to give myself signature copy to him is it addvisable ?

secondaly in allotment leter bulder is agree to pay interest amount of my EMI if he is fail to deliver the flat in mentioned time then what is the way to pressuriesd him to do this usualy tthey may try to avid the same.

waiting for your reply

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