Builder asking for additional ₹3 lakhs before flat registration in Noida?

Question

I booked a flat in Noida two years ago and recently completed all payments as per the agreement. Now, the builder is demanding an additional ₹3 lakhs, claiming increased costs, and refusing to proceed with registration unless I pay. This feels like extortion. The agreement didn't mention any such clause. I'm worried about losing my flat. What legal action can I take against the builder to stop this?

Adv. Pallavi Joshi · Accepted Answer

I'm Adv. Pallavi Joshi, and I understand how concerning this situation must be for you. Let's break down your legal options under Indian law.

Review Your Agreement: First, it's crucial to review the sale agreement you signed with the builder. Typically, such agreements outline all costs and any conditions under which additional charges can be levied. Since you mentioned there's no clause for additional payments, the builder's demand seems unjustified.

Consumer Protection Act, 2019: You can approach the Consumer Disputes Redressal Commission, as this situation falls under unfair trade practices. The demand for extra payment without any contractual basis can be challenged as a deficiency in service. File a complaint at the District Consumer Forum if the claim amount, including compensation, is up to ₹1 crore.

Real Estate (Regulation and Development) Act, 2016 (RERA): Since your property is in Noida, RERA is applicable. Builders must adhere to the terms specified in the agreement. You can file a complaint with the Uttar Pradesh RERA authority. RERA is designed to protect buyers from such arbitrary demands by builders.

Legal Precedents: The Supreme Court in Fortune Infrastructure v. Trevor D'Lima (2018) held that builders cannot demand additional amounts not specified in the agreement. Similarly, the National Consumer Disputes Redressal Commission in Kavita Saini v. DLF (2019) ruled against arbitrary demands made by builders.

Steps to Take:

Send a Legal Notice: Draft a legal notice to the builder, stating the breach of agreement and demanding the registration be completed without additional charges. This often prompts builders to rectify their stance.
File a Complaint: If the builder does not comply, proceed to file a complaint with the Consumer Forum or RERA. Attach all relevant documents, including the agreement and payment receipts.
Injunction Order: Consider seeking an injunction from the civil court to prevent the builder from selling the flat to another party while the dispute is unresolved.

Limitation Period: Be mindful of the limitation period. For consumer complaints, the limitation is two years from the date of the cause of action, which in your case, is the demand for additional payment.

Given the complexity and potential for escalation, consulting with a lawyer specializing in real estate disputes would be beneficial to ensure your rights are fully protected.

📚 References:

Adv. Anjali Gupta · Answer

I'm sorry to hear about the stress this situation is causing you. It certainly sounds frustrating, especially after fulfilling all your payment obligations as per the original agreement.

The short answer is that the builder's demand seems legally unfounded if the additional payment wasn't specified in your agreement. You have several legal options to challenge this demand.

Under the Real Estate (Regulation and Development) Act, 2016, builders cannot demand additional payments beyond what is agreed upon in the sales agreement. The Act is designed to protect homebuyers from such arbitrary demands.

Review Your Agreement: Double-check your agreement to confirm there are no clauses allowing the builder to demand additional payments.
Send a Legal Notice: Draft a legal notice to the builder, stating that their demand is illegal under the RERA Act and that you will take legal action if they do not proceed with the registration.
File a Complaint with RERA: You can file a complaint with the Uttar Pradesh RERA Authority. They are equipped to handle disputes between builders and buyers. Make sure to do this promptly.
Consider Consumer Court: If RERA doesn't resolve the issue, you can approach the Consumer Court for deficiency in service and unfair trade practice.

In my experience, builders often back down once a legal notice is served, especially when they know their demand is not legally enforceable. However, they might argue that increased construction costs are a reason, but unless this is specified in the contract, it holds no ground.

Be aware of the limitation period for filing complaints. Under RERA, you generally have up to 3 years from the date of cause of action to file a complaint.

Feel free to share the specific wording of the agreement or any correspondence from the builder. The exact language can be crucial in building your case.

📚 References

Adv. Hetal Shah · Answer

In your situation, it is crucial to address the builder's demand for an additional ₹3 lakhs, which appears to be outside the terms of your original agreement. Here’s how you can handle this legally: Review Your Agreement: First, thoroughly review your sale agreement to confirm that there is no clause allowing the builder to demand additional payments due to increased costs. Given that you've mentioned there is no such clause, this strengthens your position. Legal Notice: You should send a legal notice to the builder, demanding adherence to the original agreement terms and completion of the registration process without any additional payment. A legal notice often acts as a formal warning and can lead to resolution without further legal action. Consumer Complaint: If the builder does not respond favorably to your legal notice, you can file a complaint with the Consumer Disputes Redressal Commission (CDRC). Under the Consumer Protection Act, 2019, you can seek redressal for unfair trade practices and deficiency in service. Noida falls under the jurisdiction of the Uttar Pradesh State Consumer Disputes Redressal Commission. RERA Complaint: You can also file a complaint with the Uttar Pradesh Real Estate Regulatory Authority (UP RERA). The Real Estate (Regulation and Development) Act, 2016 protects buyers from such practices and mandates that builders adhere to the terms of the agreement. Injunction Suit: If you wish to prevent the builder from transferring the flat to another par

Adv. Mohan Das · Answer

It sounds like you're in a tough spot, and I understand your frustration. The situation you're facing is unfortunately not uncommon in real estate transactions. Let me guide you on the legal remedies available to you under Indian law. First and foremost, you should review your agreement with the builder. If there is no clause allowing the builder to demand additional payments, then this demand is likely unjustified. Builders often try to impose such demands, but the law provides you with some protection. Real Estate (Regulation and Development) Act, 2016: This Act, commonly known as RERA, provides a framework to protect homebuyers. Since your flat is in Noida, this Act is applicable. Under RERA, developers must adhere to the terms of the agreement, and any unilateral demand for additional charges without prior agreement is generally impermissible. Steps you can take: File a Complaint with RERA: You can file a complaint with the Uttar Pradesh Real Estate Regulatory Authority. This can be done online. The complaint should include details of your agreement and the builder's unjustified demand. Consumer Forum: You can also approach the Consumer Disputes Redressal Commission. Builders demanding extra money can be seen as an unfair trade practice under the Consumer Protection Act, 2019. Legal Notice: Consider sending a legal notice to the builder demanding compliance with the original agreement terms and threatening legal action if they fail to proceed with the registration. In the

Builder asking for additional ₹3 lakhs before flat registration in Noida?

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