Builder demanding extra ₹3 lakh or won't register my flat?

Question

I bought a flat in Pune, paid full amount as per agreement. Now, builder is asking for an additional ₹3 lakh claiming increased costs or he won't register the property. I'm supposed to move in next month. What can I do? Is this legal?

Adv. Arjun Menon · Accepted Answer

The short answer is that the builder's demand for an additional ₹3 lakh after the full payment as per the agreement is likely not legal. Here's the practical breakdown.

1. Check Your Agreement: The first step is to review your sale agreement thoroughly. Look for clauses related to the payment schedule, cost escalation, and registration. If your agreement specifies a fixed price and you've paid in full, the builder cannot unilaterally demand more money.

2. Legal Provisions: Under the Real Estate (Regulation and Development) Act, 2016, builders are prohibited from demanding any additional charges that are not part of the agreement. Section 13 of the Act specifically prohibits the builder from taking more than 10% of the cost of the apartment as an advance before entering into a sale agreement.

3. Relevant Case Law: In the case of Fortune Infrastructure vs. Trevor D'Lima (2018), the Supreme Court held that builders cannot demand additional amounts if the agreement does not specify such payments.

4. Immediate Steps:

Send a legal notice to the builder through an advocate, citing the agreement terms and the relevant legal provisions.
File a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). They can provide relief and direct the builder to proceed with the registration.
Consider filing a complaint with the Consumer Forum for unfair trade practices and deficiency in service if the issue persists.

The key thing to watch out for here is any deadline for moving into the property or registering it. Ensure that you act swiftly to protect your rights.

The most important thing right now is to send a legal notice to the builder and file a complaint with MahaRERA. Don't delay this, as it will strengthen your position and expedite the resolution process.

📚 References:

Adv. Kavya Reddy · Answer

Hi there! I looked into this carefully and here's what I found. You're definitely not alone in facing this issue, and it's important to know your rights under Indian law. Firstly, the demand for an additional ₹3 lakh by the builder after you have paid the full amount as per the agreement is likely not legal. The Real Estate (Regulation and Development) Act, 2016, often referred to as RERA, is designed to protect homebuyers like you from such practices. Under RERA, 2016, any additional charges that were not part of the original agreement cannot be imposed unilaterally by the builder. One thing I want to flag is that builders often cite "increased costs" as a reason, but unless this was a clearly defined clause in your agreement, it's generally not enforceable. You should check your sale agreement to see if there's any clause regarding price escalation. If there isn't, the builder's demand is not in compliance with RERA. In terms of legal recourse, you can file a complaint with the RERA authority in Maharashtra, as Pune falls under its jurisdiction. The authority is known for addressing such grievances effectively. It's also possible to approach the consumer forum for unfair trade practices under the Consumer Protection Act, 2019. This Act protects consumers from unfair or restrictive trade practices. There are actually a few important cases on this point. In Fortune Infrastructure & Anr. vs. Trevor D'Lima & Ors. (2018), the Supreme Court held that a builder cannot demand addit

Adv. Gaurav Singh · Answer

Hi there, I can imagine how frustrating and stressful this situation must be for you, especially when you're all set to move into your new home. Let’s break this down and see what your options are.

The short answer is: No, the builder cannot legally demand additional money beyond what was agreed in your contract unless there's a specific clause allowing for such increases.

Under the Real Estate (Regulation and Development) Act, 2016 (RERA), builders are required to adhere to the terms of the sale agreement. Any additional demands not stipulated in the agreement can be contested.

Here's what you can do next:

Review Your Agreement: Go through your sale agreement carefully to check if there's any clause that allows the builder to charge extra due to increased costs. If not, his demand is likely unjustified.
Send a Legal Notice: Draft a legal notice to the builder demanding registration of the property as per the original agreement. This should be sent via registered post, and you should keep the postal receipt as evidence.
File a Complaint with RERA: If the builder does not comply, you can file a complaint with the RERA Authority in Maharashtra. They are responsible for ensuring that builders follow the rules as per the agreement.
Approach the Consumer Forum: If the situation does not resolve, you have the option to approach the Consumer Forum for redressal under the Consumer Protection Act, 2019. This act protects consumers against unfair trade practices.

In my experience, builders sometimes make such demands hoping that buyers will comply to avoid delays. However, courts and regulatory bodies generally do not look favorably on such practices, especially when the buyer has fulfilled all contractual obligations.

Important: There may be a time limitation to file complaints with RERA or the Consumer Forum, so it’s best to act promptly. Typically, RERA complaints should be filed within 5 years of the dispute arising.

Feel free to share more details about your agreement or any correspondence with the builder — the specifics can make a big difference in how you should proceed.

📚 References

Adv. Sudha Bhatt · Answer

As an IBC & Insolvency Resolution Specialist, I can guide you through the steps you need to take in this situation. The demand for an additional ₹3 lakh by the builder, especially after you have paid the full amount as per the agreement, is generally not legal. Let's break down your situation and explore your options. 1. Review Your Agreement: First, review the sale agreement or builder-buyer agreement that you signed. Check if there is any clause that allows the builder to demand additional payments under certain circumstances such as increased costs. If there is no such clause, the builder's demand is likely unjustified. 2. Legal Provisions: The Real Estate (Regulation and Development) Act, 2016 (RERA) is applicable in your case since you are buying a flat in Pune, Maharashtra. Under RERA, builders are required to adhere to the terms of the sale agreement and cannot unilaterally alter the terms or demand additional money without a legal basis. You can file a complaint with the Maharashtra Real Estate Regulatory Authority (MahaRERA). Section 13(1) of RERA states: "A promoter shall not accept a sum more than ten percent of the cost of the apartment, plot, or building as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person." 3. Legal Precedents: In the case of Fortune Infrastructure v. Trevor D’Lima (2014), the Supreme Court held that builders cannot demand any additional payment beyond what is stipul

Builder demanding extra ₹3 lakh or won't register my flat?

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