Builder asking for additional ₹5 lakh or won't hand over flat keys?

Question

I booked a flat in Pune last year, and as per agreement, the possession was due in June 2026. Now the builder is demanding an extra ₹5 lakh citing increased construction costs. He refuses to hand over the keys otherwise. I have already paid the full amount as per the original agreement. What legal actions can I take against this extortion? I am feeling really frustrated and helpless. Can I file a complaint or seek compensation?

Adv. Ramesh Srinivasan · Accepted Answer

The builder's demand for an additional ₹5 lakh beyond the agreed amount is legally indefensible. You have a strong case to challenge this demand. First, refer to the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA. Under this Act, the builder cannot unilaterally alter the terms of the agreement or demand additional payments without your consent. Specifically, Section 13 of RERA prohibits the builder from demanding any payment without a written agreement. You should immediately file a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). This is a straightforward process and can be done online. The authority has the power to direct the builder to comply with the original terms and even penalize them for such unfair trade practices. Additionally, you can file a complaint before the Consumer Disputes Redressal Commission for "deficiency in service" and "unfair trade practice" under the Consumer Protection Act, 2019. This could allow you to seek compensation for any harassment or inconvenience caused. For precedent, consider the case of Fortune Infrastructure v. Trevor D'Lima (2018), where the Supreme Court held that builders cannot delay possession or demand additional amounts beyond the agreed terms. Here's what you need to do: Gather all documentation: original agreement, payment receipts, and any communication with the builder. File a complaint with MahaRERA immediately. This should be your first step as it directly addresses real estate issues. Simultaneously, consider filing a complaint with the Consumer Commission for additional remedies. Consult a lawyer who specializes in RERA and consumer law to guide you through the process effectively. Do not delay in initiating these actions. The sooner you act, the better your chances of a favorable resolution. 📚 References Real Estate (Regulation and Development) Act, 2016 Consumer Protection Act, 2019 Fortune Infrastructure v. Trevor D'Lima (2018)

Adv. Abhijit Das · Answer

I'm sorry to hear about the situation you're facing. You have several legal remedies available to address this issue with the builder. Let me guide you through the options: 1. Review the Agreement: First, closely examine your agreement with the builder. Check for clauses related to payment, possession, and any provisions regarding escalation of costs. If the agreement does not explicitly allow the builder to demand additional money, their demand is likely unlawful. 2. File a Complaint with RERA: Since this involves real estate, you can file a complaint with the Real Estate Regulatory Authority (RERA) of Maharashtra. Under the Real Estate (Regulation and Development) Act, 2016, builders cannot demand additional payments beyond what is stipulated in the agreement without valid justification. RERA can direct the builder to comply with the agreement terms and may impose penalties for non-compliance. 3. Consumer Court: Since you are a consumer of the builder's services, you can also approach the Consumer Disputes Redressal Commission. The builder's demand for additional payment can be considered as unfair trade practice under the Consumer Protection Act, 2019. You can seek compensation for any mental agony and monetary loss due to this unfair demand. 4. Civil Suit for Specific Performance: If the builder still refuses to hand over possession, you can file a civil suit for specific performance of the contract, compelling the builder to fulfill their contractual obligations. 5. Poli

Adv. Zara Ahmed · Answer

I can understand why this situation feels overwhelming. You're right to be concerned — this is a real issue, and unfortunately, not an uncommon one. Let me give you an honest picture of where you stand and what you can do. First, it's important to know that the builder's demand for additional payment beyond what was agreed upon in the original contract is not legally justified. Under the Real Estate (Regulation and Development) Act, 2016, builders are required to adhere to the terms of the agreement they signed with the buyer. Any unilateral demand for extra money can be challenged legally. Here's what you can do: 1. **File a Complaint with RERA**: Since you're in Pune, the Maharashtra Real Estate Regulatory Authority (MahaRERA) is the appropriate body to handle such disputes. You can file a complaint against the builder for violating the terms of the agreement. The RERA Act empowers the authority to adjudicate such matters and can direct the builder to hand over possession without any additional charges. 2. **Consumer Court**: You can also approach the Consumer Disputes Redressal Commission, claiming deficiency in service and unfair trade practice. The builder's demand for extra money can be considered an unfair trade practice under the Consumer Protection Act, 2019. 3. **Legal Notice**: Before proceeding with formal complaints, you might want to send a legal notice to the builder through an advocate, stating that their demand is illegal and you intend to take legal action i

Adv. Meera Pillai · Answer

I'm sorry to hear about the situation you're facing. It must be incredibly frustrating to deal with such unexpected demands from the builder, especially after fulfilling your part of the agreement. The short answer is: Yes, the builder's demand for additional money beyond the agreed amount is not legally justified if your agreement doesn't allow for such a change. You can take legal action to protect your rights. Under the Real Estate (Regulation and Development) Act, 2016 (RERA), builders are required to adhere strictly to the terms of the sale agreement. Any demand for extra money without a valid contractual basis is not permissible. As per Section 13 of the RERA, builders cannot demand more than what is stipulated in the sale agreement. Here’s what you can do next: Review Your Agreement: Check your sale agreement for any clauses that might allow for cost escalation. If there are no such provisions, the demand is unlawful. Send a Legal Notice: Draft a legal notice to the builder demanding the handover of the flat as per the original terms. Mention that the demand for additional money is illegal. File a Complaint with RERA: If the builder does not comply after the notice, file a complaint with the RERA Authority in Maharashtra. Attach all relevant documents, including your agreement and proof of payment. Approach Consumer Court: You can also file a case in the consumer forum for unfair trade practices and deficiency in service, seeking compensation for harassment and delay.

Builder asking for additional ₹5 lakh or won't hand over flat keys?

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