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VORA (Business Development)     14 June 2012

Deficiency in service by builder

Friends, pl guide me on this :

1) I have booked a flat(in February 2010) with Reputed Lodha Builders in Thane in their under construction project. I have paid my share of flat cost(50%) and also submitted them the Home Loan Approval Letter from Axis Bank. I have registered the agreement and paid stamp duty. Builder is not able to provide me CC(Commencement Certificate) and Approved Plan upto my floor(23rd) for last 12 months(after I submitted them the copy of Bank Approval Letter) and hence the Bank is refusing to disburse Loan Installments against the demands made. The builder so far has CC only upto 12 floor and Axis Bank insists that it is mandatory that builder produces CC upto floor of my flat booking and then only they can release instalments as it is a mandatory requirement from RBI.

2) Builder keeps on raising the demand notes asper construction progress and insists for my making timely payment within 15 days of the date of demand note. He also charges me interest if there is any delay. Now he says that if Axis Bank is not disbursing without the mandatory clearances go to HDFC as they have made some special arrangmeent with them to release the money without CC. But HDFC would not give me loan due to my age being above 58 years. Now I am in catch 22 situation. I have to arrange for the funds everytime builder raises demand otherwise he charges penalty at 18%.

3) Recently the builder's legal dept suggested to start the Brick Work and Plaster work from ground floor as the builder has constructed 12 slabs upto which he possesses the CC  and Approved Plan and he can not demand any money towards construction of further slabs. The agreement clearly states that the payment of Brick Work and Plastering would become due once all slabs are laid and is also mentioned in a chronological manner after the 28 th slab. Builder's interpretation is that he can start the work of brick and plaster at ground floor and charge the installment from all 28 floors irrespective of whether they are constructed or not.

PL HELP ME IF I CAN APPROACH CONSUMER COURT ON THE GROUND OF DEFICIENCY IN SERVICE AS WELL AS UNFAIR TRADE PRACTICE AS THE ABOVE INTERPRETATION BY BUILDER SEEMS QUITE STRANGE, UNILATERAL AND UNCONVENTIONAL AND IS NOT AS PER THE PRACTICE WIDELY FOLLOWED IN BUILDING LINE. REGARDS



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 1 Replies

VORA (Business Development)     14 June 2012

Friends, further to my submission above I have to add the following which I have found form experts:

1) In a high rise building, the Load of the entire building rests on the structure of Pillars-Beamsand Slabs. Once the complete structure is errected upto the last floor which is 28th in our building the structure is complete. The instalment for payment are so divided that all floor owners will have to pay proportionate amount when the structure is coming up(from ground upwards). The 28th floor will also rest on the structure built at ground floor and hence as soon as the first slab is laid all floors have to pay their part os instalment.

2) But technically, so is not the case with brick walls and plaster work. The walls in such building are not part of the LOAD BEARING STRUCTURE LIKE BEAMS-PILLARS AND SLABS and are only for the purpose of patitioning. Hence the instalment for brick work becomes due only when the work has reached upto that floor and the load bearing structure has been properly laid out for the corresponding floor. The interpretation by Lodha Builders that the clause of brick work and plaster work becomes applicable even if they start the work at ground floor seems quite unconcentional and unfair to say the least. 

3) Also, as per my understanding, any agreement is made for a specific flat(entity) and the clauses in an agreement are to be interpreted with reference to the said flat(entity) and not otherwise. Yes the slab construction is part of the load bearing structure and the instlment for the same would become payable even if the first slab is laid in a proportionate manner. But for walls and plaster work where is the proportionate division? Walls are for specific flat and the charges for the same should beccome payble only for the particular flat for which they are made.

4) If we extend the argument, in future, builders will start collecting evn the possesion money by just making one flat in thebuilding ready for possession-even if the entire building is yet to come up !!

Besides my personal problem, this matter perhaps has wider effect of mass appeal and can lead to raising voice against such builders' unfair trade practices. Rgds


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