Builder demanding extra ₹3 lakh for possession in Bangalore?

Question

I’m feeling trapped and scared. I booked a flat in Bangalore 2 years ago, paid everything as per the agreement. Now, the builder is suddenly asking for an extra ₹3 lakh citing 'market adjustment' before giving possession. There's nothing like this mentioned in our contract. I've already exhausted my savings and can’t afford this. Is this legal? Can they delay possession if I don’t pay? What should I do next?

Adv. Meera Pillai · Accepted Answer

I'm sorry to hear you're facing this situation. It can be incredibly stressful when unexpected demands are made, especially when you've already fulfilled your obligations.

To give you the short answer: No, the builder cannot legally demand an extra ₹3 lakh if it’s not stipulated in your contract. Such demands are not enforceable if they are not part of the original agreement you signed.

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), builders are bound by the terms of the agreement they enter into with buyers. If your contract doesn't mention any 'market adjustment' fee, then the builder's demand is not valid. Additionally, they cannot delay possession of your flat for not paying an amount that is not legally due.

Here's what I suggest you do next:

Review Your Agreement: Carefully read through your sale agreement to confirm that there is no clause allowing this extra charge.
Send a Legal Notice: Draft and send a legal notice to the builder demanding possession without additional charges. You can do this through a lawyer, but make sure you keep a copy and proof of delivery.
File a Complaint: If the builder does not respond or refuses to comply, file a complaint with the RERA Authority in Karnataka. RERA is designed to protect buyers like you from unfair practices.
Document Everything: Keep records of all communications with the builder, including emails, letters, and notices.

In my experience, builders often retract such demands once they realize the buyer is aware of their rights and ready to take action. Courts and authorities like RERA usually take a strong stance against unfair practices by builders.

Make sure you act promptly. The RERA complaint should ideally be filed as soon as possible to avoid any unnecessary delays in possession.

Feel free to share more details about your agreement or any notices received. The specific wording can be crucial in these cases.

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Adv. Dinesh Kumar · Answer

I'm really sorry to hear about the stress you're under. It’s completely understandable to feel trapped in this situation, especially after fulfilling your part of the bargain. Let's break this down and find a way forward.

Short Answer: No, the builder cannot legally demand extra money if it's not specified in your agreement. This demand is not enforceable under the law.

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), builders must adhere strictly to the terms of the sale agreement. Any additional charges not mentioned in the contract are unjustifiable. Section 13 of RERA specifically requires that any demand for additional payment must be mutually agreed upon beforehand and documented in the agreement.

Write to the Builder: Send a formal letter to the builder via registered post, stating that their demand is not supported by your agreement. Keep a copy of this letter and the postal receipt for your records.
File a Complaint with RERA: You can file a complaint with the Karnataka RERA Authority. This can typically be done online through their portal. Attach all relevant documents, including your agreement and the builder's demand notice.
Prepare for a Possible Delay: While the builder cannot legally delay possession based on this demand, be prepared for them to try to stall. Document all communication and any delays in writing.

In my experience, builders often try to use these tactics to extract more money from buyers. However, the courts and RERA authorities have been quite firm in protecting buyer rights. For instance, in Fortune Infrastructure vs. Trevor D'Lima (2018 SC), the Supreme Court ruled against arbitrary demands and emphasized adherence to the terms of the agreement.

Time is of the essence here. Make sure to file your complaint with RERA as soon as possible, as there is generally a limitation period of 5 years from the date of possession delay or demand.

Stay strong and proactive. If you have more details or need help with the complaint filing process, feel free to share them here. I’m here to guide you through each step.

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Adv. Asha Pillai · Answer

I'm sorry to hear about your situation. This kind of demand from a builder can be quite distressing, especially when you have already honored your financial commitments as per the agreement. Let’s go through your options under Indian law. Legal Position: Under the Real Estate (Regulation and Development) Act, 2016, commonly known as RERA, builders are obligated to adhere strictly to the terms of the agreement for sale. Any additional demand for money that is not stipulated in the contract can be considered unfair. Section 13 of the Real Estate (Regulation and Development) Act, 2016 requires that a promoter cannot accept more than 10% of the cost of the apartment, plot, or building as an advance payment without entering into a written agreement for sale. Furthermore, any deviation from the agreed terms must be mutually agreed upon in writing. Actions You Can Take: Review Your Agreement: Double-check your sale agreement to ensure there are no clauses that allow for such additional charges. File a Complaint with RERA: You can file a complaint with the RERA authority in Karnataka. They have the jurisdiction to resolve such disputes and can order the builder to comply with the original terms of the agreement. Consumer Court: If RERA action doesn’t resolve the matter, consider approaching a consumer court. Builders making such demands can be seen as a deficiency of service under the Consumer Protection Act, 2019. Legal Notice: Before filing a case, you might want to send a legal no

Adv. Mohan Das · Answer

I'm sorry to hear about the situation you're facing. It's quite unfortunate when builders make unexpected demands, especially when you've already fulfilled your contractual obligations. Let's address your concerns step by step. First, let's discuss the legality of the builder's demand. According to the Real Estate (Regulation and Development) Act, 2016 (RERA), any demand for additional charges must be explicitly mentioned in the agreement to sell. If your contract does not mention a 'market adjustment' fee, the builder's demand is not legally enforceable. Furthermore, under RERA, builders are required to adhere to the terms of the agreement. They cannot unilaterally impose additional charges or delay possession without valid reasons. Delaying possession without just cause might entitle you to seek remedies under RERA. Here’s what you can do next: Review Your Agreement: Check your sale agreement for any clauses related to additional payments or price adjustments. If there's no mention, the demand is likely unjustified. Communicate in Writing: Write to the builder formally, stating that the demand for additional payment is not part of your agreement and request them to proceed with the possession as per the original terms. File a Complaint with RERA: You can file a complaint with the Karnataka RERA authority. They are empowered to address grievances related to real estate projects. The process is relatively straightforward and can be done online. Consult a Lawyer: If the builde

Builder demanding extra ₹3 lakh for possession in Bangalore?

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